Tolins Tyres IPO Opens Monday: Grey Market Premium Signals 13% Gain, Anchor Investors Show Strong Interest

The initial public offering (IPO) of Tolins Tyres will begin for public subscription on September 9 and close on September 11.

Grey Market Premium (GMP) and Price Band

Ahead of the IPO, the grey market premium (GMP) for Tolins Tyres is around ₹29-30, indicating a 13% premium over the issue price. The price range for the IPO is set at ₹215-226 per share.

Anchor Investors

Before the IPO, Tolins Tyres raised ₹69 crore from anchor investors. Some prominent investors include BofA Securities Europe SA, NAV Capital VCC, Chhatisgarh Investments, Ashika Global Securities, and more. These investors received 30.53 lakh shares at ₹226 per share, the highest price in the band.

Offer Structure

The IPO consists of a fresh issue of shares worth ₹200 crore and an offer-for-sale (OFS) of shares valued at ₹30 crore. Promoters Kalamparambil Varkey Tolin and Jerin Tolin will each sell ₹15 crore worth of shares through the OFS. Currently, they hold 83.31% of the company.

Business Overview

Tolins Tyres operates in two main areas: manufacturing new tyres and producing tread rubber. The company focuses on bias tyres for various vehicles, including light commercial vehicles (LCVs), agricultural vehicles, and two/three-wheelers. It also produces products like bonding gum, vulcanizing solution, tyre flaps, and tubes.

Financial Performance

For FY24, Tolins Tyres earned ₹51 crore from new tyre sales, representing 24% of its total revenue, with the remaining 76% coming from tread rubber. The company’s profit after tax (PAT) has grown by a remarkable 541.98% from FY22 to FY24. In FY24, the company’s revenue was ₹227 crore, with a profit of ₹26 crore.

Issue Managers

Saffron Capital Advisors is the sole book-running lead manager for the IPO, while Cameo Corporate Services is the registrar.