Tollins Tyres IPO Lists Flat At Rs 227
During its subscription phase, the IPO receives a final subscription of 25 times
The initial public offering (IPO) of Tolins Tyres made a muted debut almost flat with a shy premium of 0.88 per cent. The issue opened at Rs 227 on the National Stock Exchange (NSE) against its issue price of Rs 226.
However, the stock traded with initial gains of more than 5 per cent post-listing at Rs 239 on the NSE. During its subscription phase, the IPO received a final subscription of 25 times. The retail category participated with a total subscription of nearly 22.45 times, while qualified institutions subscribed to the issue more than 26 times.
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. Saffron Capital Advisors was the book-running lead manager, while Cameo Corporate Services was the registrar to the offer.
“The domestic tyre industry is set for growth due to increasing vehicle demand and the expanding automobile sector, which drives the need for replacement tyres. The treads industry in India is also flourishing due to higher vehicle ownership, better road infrastructure, and rising disposable incomes. Given these favourable macro trends, Tolins Tyres is well-positioned to benefit from sectoral tailwinds and seize market opportunities. We thus remain positive on the share and advise investors to ‘stay invested’ for a medium to long term duration,” said Sagar Shetty, Research Analyst, StoxBox.
The net proceeds of Rs 250 crore from the fresh issue will be utilised towards the investment in the wholly owned subsidiary, Tolin Rubbers and repayment of the outstanding borrowings. Additionally, the funds will also be used for funding capital expenditure requirements for the 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) was recorded at Rs 26 crore in FY 24.
