Tolins Tyres' IPO opens today; should you bid?

Tolins Tyres Ltd's IPO opens for subscription today. Check details of lot size, allotment, listing, and other key aspects

The subscription window of Tolins Tyres Ltd mainboard initial public offer (IPO) opened today, September 9. The IPO is a book-built issue of Rs 230 crore and comprises a fresh issue of 8.8 million shares aggregating to Rs 200 crore, coupled with an offer for sale of 0.013 million shares aggregating to Rs 30 crore.  

Investors can apply for the IPO till Wednesday, September 11, 2024. The price band for the IPO is set at Rs 215 to Rs 226 per share. 

The allotment date for the IPO is expected to be finalised on Thursday, September 12, 2024, with shares of Tolins Tyres tentatively expected to be listed on the BSE and NSE on Monday, September 16, 2024.

 

The minimum lot size for an application is 66 shares, for an aggregate amount of Rs 14,916.

The company proposes to utilise the net proceeds from the fresh issue towards the repayment of certain outstanding loans, augmentation of long-term working capital requirements, and investment in the company's subsidiary.

Saffron Capital Advisors Private Limited is the book running lead manager of Tolins Tyres IPO, while Cameo Corporate Services Limited is the registrar for the issue.

At last check, the grey market price (GMP) of Tolins Tyres IPO was at Rs 25, as per sources that track the grey market.

The Tolins Tyres IPO was subscribed 0.32 times at 11:17 AM, on September 9, 2024, which is the Day 1 of the public issue. It was subscribed 0.59 times in the retail category, and 0.12 times in the NII category, while the QIB category had not yet received any subscription.

Should you apply for Tolins Tyres IPO?

As per Swastika Investmart, investors seeking long-term exposure to the tyre industry may consider applying for the Tolins Tyres IPO.

As per the brokerage firm, Tolins Tyres offers product diversity, has a widespread customer base, is gradually expanding, and has strong financial performance with consistent growth. Furthermore, the IPO's valuation appears reasonable, according to them.

"Investors looking to invest can invest in the IPO for the medium to long term," said Master Capital Services.

Analysts at Master Capital reckon the Indian tyre industry to grow by 4-6 per cent in fiscal 2025 and Tolins Tyres to take advantage of this opportunity by optimizing its capacity utilization, expanding the reach of domestic markets, and expanding its product range by introducing new products and product range. 

About Tolins Tyres

Incorporated in 2003, Tolins Tyres is a tyre manufacturing company, which provides tyre retreading solutions in India apart from exporting to 40 countries.

The company manufactures a range of products, including tyres for two-wheelers, three wheelers, light commercial vehicles, and agricultural tyres, apart from tread rubber, and various accessories such as bonding gum, tyre flaps and vulcanizing solutions.

The company also operates three manufacturing facilities. It has 163 stock-keeping units (SKUs) in the tyre category. The company also operates eight depots, and has a network of 3,737 dealers nationwide.