Tolins Tyres shares are set to debut on the Indian stock exchanges on Monday, September 16. Ahead of the listing, the company’s shares are commanding a healthy grey market premium (GMP) of ₹30, according to investorgain.com.
Considering the IPO price band's upper end and the grey market's current premium, the estimated listing price of Tolins Tyres was indicated at ₹256 apiece, a 13.2 percent higher than the IPO price of ₹226. The grey market premium reflects investors' willingness to pay more than the issue price.
The mainboard IPO, valued at ₹230 crore, was open for subscription from September 9 to September 11, 2024, with a price range between ₹215 and ₹226. The shares are set to list on both BSE and NSE platforms.
The issue is a combination of a fresh issue of 0.88 crore shares aggregating to ₹200 crore and an offer for sale of 0.13 crore shares aggregating to ₹30 crore. The IPO attracted a healthy response from investors, achieving an overall subscription rate of 25 times.
Non-institutional investors were particularly active, subscribing 28 times, while QIBs also demonstrated strong interest, with a subscription rate of 26 times. Retail investors have shown notable interest as the portion booked at 22.45 times, according to Chittorgarh.com.
The company proposes to utilize the net proceeds from the fresh issue towards the full repayment and/or prepayment of certain outstanding loans, including any associated foreclosure charges.
A portion of the proceeds will be dedicated to enhancing the long-term working capital requirements of the company. Additionally, the company plans to invest in its wholly owned subsidiary, Tolin Rubbers Private Limited, to facilitate the repayment and/or prepayment of its short-term and long-term borrowings and to support its working capital needs.
The remaining funds will be utilised for general corporate purposes.
The company is a leading player in the tyre & treads industry with an all-India presence and a diverse product range. It is one of the companies that are present in both verticals—manufacturing of new tyres and tread rubber.
It has established itself as a major tyre retreading solutions provider across India and exported to 40 foreign countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.
The company is primarily engaged in the manufacturing of bias tyres for a comprehensive array of vehicles (including light commercial, agricultural, and two- and three-wheeler vehicles) and precured tread rubber and is also involved in the manufacturing of ancillary products like bonding gum, vulcanizing solution, tyre flaps, and tubes.
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