The initial public offering (IPO) of Tolins Tyres Ltd is seeing strong interest from investors. The IPO opened on September 9 and will close on September 11. The company aims to raise ₹230 crore from this offering.
Subscription Status
On the second day of the bidding process, Tolins Tyres IPO has been subscribed over 3 times. By 12:00 pm, the issue had received bids for 2.29 crore shares out of the 74.88 lakh shares offered.
- Retail Investors: 5.32 times
- Qualified Institutional Buyers (QIBs): 12%
- Non-Institutional Investors (NIIs): 1.72 times
Grey Market Premium (GMP)
Tolins Tyres shares are trading at a premium in the grey market. The grey market premium (GMP) for the IPO is ₹38 per share. This means the shares are trading at a premium of 17% compared to the IPO price, at ₹264 per share.
Should You Apply?
Analysts suggest subscribing to the Tolins Tyres IPO for long-term gains. The Indian tyre industry is expected to grow by 4-6% in the coming fiscal year. Tolins Tyres plans to benefit from this growth by optimizing its operations, expanding its market reach, and reducing debt using the IPO funds.
IPO Details
- Opening Date: September 9
- Closing Date: September 11
- Allotment Date: September 12
- Listing Date: September 16
Price Band and Issue Structure
- Price Band: ₹215 to ₹226 per share
- Total Amount to Raise: ₹230 crore
- Issue Structure: 88.49 lakh new shares worth ₹200 crore and an offer for sale of 13.27 lakh shares worth ₹30 crore
Use of Proceeds
The funds from the IPO will be used to pay off loans, support long-term working capital needs, invest in the subsidiary Tolin Rubbers Private Limited, and for general corporate purposes.
Company Background
Tolins Tyres manufactures tyres and tread rubber, holding a 2.7% market share in India’s retread tyre segment and a 0.06% share in the overall tyre market. In FY24, the company’s revenue was ₹227.2 crore, with most sales coming from India.
IPO Management
- Book Running Lead Manager: Saffron Capital Advisors Pvt Ltd
- IPO Registrar: Cameo Corporate Services Ltd
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