Tolins Tyres IPO Sees 25x Subscription, Poised For 18% Listing Gain
Retail category participates with a total subscription of 22.45 times, while qualified institutions subscribes the issue more than 26 times subscription
The initial public offering (IPO) of Tolins Tyres closed for public subscription on 12 September after an attempt to raise Rs 230 crore from the public market.
The Rs 230 crore IPO consisted of fresh issues of up to Rs 200 crore and an offer-for-sale (OFS) worth Rs 30 crore by promoter and investor selling shareholders. The price band for the issue was fixed at Rs 215 to 226 per equity share.
During its subscription phase, the IPO received a final subscription of 25 times. Retail category participated with a total subscription of nearly 22.45 times, while qualified institutions subscribed the issue more than 26 times subscription.
The issue opened on 9 September and closed on 11 September. The allotment for the issue will be finalised on 12 September followed by its listing on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 16 September.
Saffron Capital Advisors is the book running lead manager, while Cameo Corporate Services is the registrar to the offer.
Tolins Tyres attracted healthy investor interest during the subscription period. We expect a listing gain of 18 per cent on the back of a healthy subscription rate. The company is effectively able to manufacture products which align with the client’s requirement. Such synergies within its operation enables the company to benefit from enhanced operational efficiency and cost management,” said Sagar Shetty, Research Analyst, Stoxbox.
The company is expected to ride on the sectoral tailwinds and capitalise on market opportunities. Thus, we advise the participants who will be alloted with the shares to hold it from a medium to long term perspective, added Shetty.
The net proceeds of Rs 250 crore from the fresh issue will be utilised towards the investment in wholly owned subsidiary, Tolin Rubbers and repayment of the outstanding borrowings.
Additionally, the funds will also be used for funding capital expenditure requirements for purchase of equipment and general corporate purposes.
Moreover, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders.
Tolins Tyres registered a revenue of Rs 228.69 crore in FY 23-24, while the profit after tax (PAT) recorded at Rs 26 crore in FY 24.
