Tolins Tyres (Tolins Tyres Limited IPO GMP) is set to make a significant mark as it opens its Initial Public Offering (IPO) on 9 September 2024, with subscription closing on September 11, 2024. This IPO, valued at ₹230 crore, marks the first private manufacturing company from Kerala to hit the stock market in 16 years, following V-Guard’s last listing in 2008.
Tolins Tyres Limited IPO GMP
Subscription Period: September 9 to September 11, 2024.
Price Band: ₹215 to ₹226 per share.
Subscription Information
Minimum Lot Size: 66 shares.
Minimum Investment: ₹14,916 for retail investors.
Total Issue Size: 10,176,992 shares with a face value of ₹5 each. This includes a fresh issue of 8,849,558 shares aiming to raise ₹200 crore and an offer for sale of 1,327,434 shares totaling ₹30 crore.
Listing Details
Allotment Date: Expected on September 12, 2024.
Stock Exchanges: The shares will be listed on BSE and NSE, with the tentative listing date set for Monday.
Purpose of the IPO
The ₹230 crore IPO comprises an offer for sale of 0.13 crore shares (₹30 crore) and a new issue of 0.88 crore shares (₹200 crore).
Utilization of Funds:
- Repayment of existing debt from scheduled commercial banks.
- Investment in Tolin Rubbers Private Limited, a wholly owned subsidiary, for debt repayment and working capital needs.
- General corporate purposes and support for working capital requirements.
About Tolins Tyres Limited
Founded in 2003, Tolins Tyre is a significant player in tyre manufacturing, known for its production of bias tyres for light commercial, agricultural, and two/three-wheeler vehicles, as well as precured tread rubber, tyre flaps, and tubes. The company operates three manufacturing facilities: two in Mattoor, Kalady, and one in Al Hamra Industrial Zone, Ras Al Khaimah, UAE.
Business Segments: Tyre production and tread rubber production.
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Financial Performance
Revenue: ₹228.69 crore for FY25.
Net Profit: ₹100.53 crore.
Return on Equity (RoE): 25.87%.
Debt-to-Equity Ratio: 0.78 times as of FY24.
Peer Comparison
Notable peers include Indag Rubber Ltd., Vamshi Rubber Ltd., TVS Srichakra Ltd., GRP Ltd., and Elgi Rubber Company Limited.
IPO Registrars and Managers
Registrar: Cameo Corporate Services Limited.
Book Running Lead Manager: Saffron Capital Advisors Private Limited.
Promoters
The company is promoted by Jerin Tolin and Kalamparambil Varkey Tolin. Kalamparambil Varkey Tolin, who is the chairman and managing director, owns 83.31% of the company, with his wife, Jerin Tolin, holding a significant stake. Jerin’s father, Jose Thomas, holds an additional 8.47%.
Grey Market Premium (GMP)
Current GMP: ₹25 above the issue price, indicating a premium of 11.06%. This suggests that shares are expected to list around ₹251.
Kerala’s Biggest Manufacturing IPO in Over a Decade
Tolins Tyres’ IPO is particularly notable for Kerala, which has not seen a private manufacturing company make it to the stock market since V-Guard in 2008. While Cochin Shipyard listed in 2017, it is a public sector undertaking focused mainly on government contracts. Apollo Tyres, though headquartered in Kerala, operates primarily out of Gurugram with most of its factories located outside the state.
Kerala’s economic landscape has been more dominated by sectors like banking, jewellery, and gold finance, with companies like Federal Bank, South Indian Bank, and Muthoot Finance leading the market. Tolins Tyres’ IPO marks a significant shift, bringing renewed attention to the state’s manufacturing sector. The company’s valuation is set at approximately ₹900 crore, a notable figure in comparison to other Kerala-based firms such as Muthoot Finance and Kalyan Jewellers, which boast market capitalizations of around ₹50,000 crore each.
Ahead of the IPO, Tolins Tyres secured ₹69 crore from select investors, signaling strong interest in this landmark offering for Kerala.
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