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About Tolins Tyres Ltd IPO:
Tolins Tyres IPO aims to raise Rs 230.00 crores through a book-built issue. It comprises a fresh issue of 0.88 crore shares worth Rs 200.00 crores and an offer for sale of 0.13 crore shares worth Rs 30.00 crores.
The subscription for Tolins Tyres IPO commences on September 9, 2024, and ends on September 11, 2024. The allotment for the IPO is anticipated to be finalised on Thursday, September 12, 2024. Tolins Tyres IPO is scheduled to be listed on BSE and NSE, with the target date being Monday, September 16, 2024.
The price band for Tolins Tyres IPO is between Rs 215 and Rs 226 per share. The minimum application lot size is 66 Shares, requiring a minimum investment of Rs 14,916 for retail investors. Small non-institutional investors (sNIIs) need to apply for 14 lots (924 shares), amounting to Rs 2,08,824, while big non-institutional investors (bNIIs) must apply for 68 lots (4,488 shares), amounting to Rs 10,14,288.
Saffron Capital Advisors Private Limited is the book-running lead manager for the Tolins Tyres IPO, and Cameo Corporate Services Limited is the IPO‘s registrar.
Tolins Tyre Limited IPO Details:
| Particulars | Details |
| Tolins Tyres IPO Date | September 9, 2024 to September 11, 2024 |
| Face Value | Rs 5 per share |
| Price Band | Rs 215 to Rs 226 per share |
| Tolins Tyres Ltd Lot Size | 66 Shares |
| Total Issue Size | 10,176,992 shares (aggregating up to Rs 230.00 Cr) |
| Fresh Issue | 88,49,558 shares (aggregating up to Rs 200.00 Cr) |
| Offer for Sale | 13,27,434 shares of Rs 5 (aggregating up to Rs 30.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre-issue | 3,06,59,272 |
| Shareholding post-issue | 3,95,08,830 |
Tolins Tyres Limited IPO Major schedules:
| Particulars | Details |
| Tolins IPO Open Date & Close Date | Monday, September 9, 2024 and Wednesday, September 11, 2024 |
| Tolins Tyre IPO allotment date | Thursday, September 12, 2024 |
| Initiation of Refunds | Friday, September 13, 2024 |
| The credit of Shares to Demat | Friday, September 13, 2024 |
| Listing Date | Monday, September 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 11, 2024 |
Applications Type, Tolins Tyre Lot size, Shares offered, and their Value:
| Application | Lots | Shares | Amount |
| Retail (Min) | 1 | 66 | Rs 14,916 |
| Retail (Max) | 13 | 858 | Rs 1,93,908 |
| S-HNI (Min) | 14 | 924 | Rs 2,08,824 |
| S-HNI (Max) | 67 | 4,422 | Rs 9,99,372 |
| B-HNI (Min) | 68 | 4,488 | Rs 10,14,288 |
Investors categories and shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| Retail Shares Offered | Not less than 35.00% of the Net Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Net Offer |
Tolins Tyres Limited IPO GMP
The latest Grey Market Premium (GMP) for Tolins Tyres IPO is Rs 25, as of September 5th, 2024, 09:23 AM. The price band for the IPO ranges from Rs 215 to Rs 226. Considering the GMP, the estimated listing price for the IPO would be Rs 251 (cap price + today’s GMP).
There is expected to be a gain/loss of approximately 11.06% per share. The Tolins Tyres IPO Retail Subject to Sauda is also set at Rs 1,300, while the Tolins Tyres IPO Small High Net Worth Individuals (HNI) Subject to Sauda is Rs 18,200.
Tolins Tyres Limited Company Details
Founded in 1982 as a small industrial unit, Tolins Tyres has become a leading manufacturer of various tyres. Their product line includes two- and three-wheeler tyres, Light Commercial Vehicles (LCVs), and agricultural vehicles.
Tolins Tyres has innovative Precured Tread Rubber and other retreading products, demonstrating their dedication to state-of-the-art technology.
These products have gained recognition in India and have significantly impacted 40 countries, such as the Middle East, East Africa, Kenya, Jordan, and Egypt. Tolins is the first Indian retread brand to enter and thrive in the fiercely competitive American market for pre-cured retreading products.
Their manufacturing facilities in India and overseas maintain strict quality, durability, and technology standards. The precision-engineered products cater to a wide range of vehicles, providing extended mileage and meeting the highest international standards.
While Tolins Tyres continues to develop and expand its core business, the company remains at the forefront of tyre innovation. It is driven by the vision of our late founder, K. P. Varkey, and guided by their experienced entrepreneurial and technocrat leaders.
Financials of Tolins Tyres:
| Particulars | Period ended 31-03-2024 (Rs in crores) |
| Assets | 221.6 |
| Revenue | 228.69 |
| Profit After Tax | 26.01 |
| Net Worth | 100.53 |
| Reserves and Surplus | 85.07 |
| Total Borrowing | 78.77 |
Tolin Tyre Lttd Key Ratios:
| KPI (Key Performance Indicator) | Values |
| ROE (Return on Equity) | 25.87% |
| ROCE (Return on capital employed) | 36.08% |
| Debt/Equity Ratio | 0.78:1 |
| RoNW (Return on Net Worth) | 25.87% |
| P/BV (Price to Book Value) | 6.14 |
| PAT (Profit after Tax) Margin (%) | 11.45 |
Tolins Tyres Limited IPO RHP details – Risks according to RHP
1. Internal related to raw materials
The tyre manufacturing industry faces challenges due to limited suppliers for key raw materials. There is also an absence of long-term contracts with suppliers by the company.
Further, price volatility and non-availability of raw materials, delayed deliveries, or strained supplier relationships, could impact its business and financial performance.
2. Risks related to OEMs
The business is focused on providing products to automotive original equipment manufacturers (OEMs), and its performance depends on the Indian automotive sector. The company needs to maintain relationships with automotive OEM customers as they may not renew orders or place new orders.
Potential impacts of automobile recall and adverse economic conditions may lead to decreased customer production, resulting in lower demand for the company’s products and meeting the technological requirements of automotive original equipment manufacturers.
3. Risks related to manufacturing outlets
The company relies heavily on its Manufacturing Facilities in India and overseas for its business. Its infrastructure, facilities, and operations are primarily in Kalady, Kerala, and Ras Al Khaimah, UAE.
Any interruption in manufacturing or a temporary or permanent closure of its Manufacturing Facilities could significantly and negatively impact its business, opportunities, financial status, and operational results.
4. Risks related to Distributors and Dealers
Dealers and distributors purchase a large portion of the company’s tyre products. The company has not entered into any formal agreements with our distributors and dealers. So, if the company is not able to maintain relationships or find suitable replacements in future, then, it could impact its product sales.
5. Risks related to Financials
The company and its affiliates, Tolin Rubbers Pvt. Ltd. and Tolins Tyres LLC (One Person), have experienced negative cash flow.
Any negative cash flows in the future could negatively impact the company’s cash flow needs, potentially hindering its business operations and expansion initiatives and consequently significantly impacting its financial status.
Objectives Of The Tolins Tyres Limited IPO:
The company aims to utilise the proceeds from the fresh issue in the following segments:
1. Settling all outstanding loans, including any foreclosure charges, the company has taken.
2. Increasing the company’s long-term working capital reserves.
3. Injecting funds into Tolin Rubbers Private Limited, a wholly-owned subsidiary, to fully pay off short-term and long-term debts and boost its working capital.
4. Using funds for general corporate purposes.
Frequently Asked Questions (FAQs)
What is Tolins Tyres Limited IPO Price Band?
The Tolins Tyres Limited IPO Price Band IPO ranges from Rs 215 to Rs 226 per share.
What are the Tolins Tyre IPO open & close dates?
The Tolins Tyre IPO opening and closing dates are September 9, 2024 and September 11, 2024, respectively.
What is the Tolins Tyre IPO allotment date?
The tentative allotment date is Thursday, September 12, 2024.
Mention the Tolins Tyres Limited Owner details.
The Tolins Tyres promoters are Kalamparambil Varkey Tolin and Jerin Tolin.
What is the Listing Date of Tolins Tyre IPO?
The tentative listing date of Tolins Tyre IPO is Monday, September 16, 2024.
From where you can download the offer-related documents of the Tolins Tyre IPO?
The Tolins Tyre’s offer-related documents can be found on the SEBI’s website. The below links will redirect you to its website.
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