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Tolins Tyres IPO Day 2: Oversubscribed 3x, GMP Soars—Should You Invest?

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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