The initial public offering of Tolins Tyres Ltd. has been subscribed 1.8 times on the first day on Monday, led by demand from retail investors. The company is looking to raise Rs 230 crore via the offering, which consists of a fresh issue of equity shares worth Rs 200 crore and an offer for sale worth Rs 30 crore.
The Kerala-based company has set a price band of Rs 215-226 per share. The market valuation of the company at the upper end of the price band is Rs 893 crore.
Tolins raised Rs 68 crore from anchor investors on Friday. The company allotted 30.5 lakh shares at Rs 226 apiece to eight anchor investors. The offer, which concludes on Sept. 11, is set to list on the BSE and the National Stock Exchange.
Issue Details
Issue opens: Sept. 9.
Issue closes: Sept. 11.
Issue price: Rs 215–226 per share.
Fresh issue: Rs 200 crore.
Offer for sale: Rs 30 crore.
Total issue size: Rs 230 crore.
Business
The company manufactures tyres for vehicles, including light commercial, agricultural and two and three-wheeler vehicles and precured tread rubber. It also produces ancillary products like link bonding gum, vulcanising solution, tyre flaps and tubes.
It operates from three manufacturing facilities, of which two are located in Kerala and the third one in the UAE.
Tolins is operating at an average capacity utilisation of around 33.4%. It intends to increase the production capacity progressively in the next few years to go up to 75% capacity utilisation under various product portfolios.
Also Read: Tolins Tyres IPO: All You Need To Know
Use Of Proceeds
The company plans to use proceeds of the IPO for the following purposes:
Repayment of borrowings: Rs 69.9 crore.
Working-capital requirement: Rs 75 crore.
Repayment of India subsidiary loans: Rs 15.1 crore.
Working capital of India subsidiary: Rs 8 crore.
Subscription Status: Day One
The IPO has been subscribed 1.8 times as of 5:30 p.m. on Monday.
Qualified institutional buyers: 0.12 times or 12%
Non-institutional investors: 0.83 times, or 83%.
Retail investors: 3.17 times.
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