Tolins Tyres IPO Day 2: Issue subscribed over 3 times so far; Latest GMP, should you apply, other key details

Tolins Tyres IPO: The initial public offering (IPO) of Tolins Tyres Ltd has been receiving strong demand from investors and the issue is oversubscribed so far on the second day of the bidding process. Tolins Tyres IPO opened for subscription on September 9 and will close on September 11.

Tolins Tyres Ltd is a tyre manufacturing company and provides tyre retreading solutions in India and exports to 40 countries. The company plans to raise ₹230 crore from the IPO.

Let us check Tolins Tyres IPO GMP today, subscription status, and other key details

Tolins Tyres IPO Subscription Status

Tolins Tyres IPO has been subscribed 3.06 times in total so far. The public issue received bids for 2.29 crore equity shares as against 74.88 lakh shares on the offer, according to the data available till 12:00 pm.

The IPO has been subscribed 5.32 times in the retail category, 12% in the Qualified Institutional Buyers (QIB) category, and 1.72 times in the Non Institutional Investors (NII) category so far.

Tolins Tyres IPO GMP Today

Tolins Tyres shares are trading at a decent premium in the grey market. According to stock market observers, Tolins Tyres IPO GMP today, or grey market premium today, is ₹38 per share. This signals that Tolins Tyres shares are trading higher by ₹38 or at a premium of 17% at ₹264 apiece as compared with its IPO price of ₹226 per share.

Tolins Tyres IPO: Should you apply?

Analyst have recommended subscribing to the Tolins Tyres IPO for the long term.

“Indian tyre industry is expected to grow by 4-6% in fiscal 2025, owing to improvement in replacement demand amidst a muted growth in OEM segment. Tolins Tyres intends to take advantage of this opportunity by optimizing its capacity utilization, expanding the reach of domestic markets, and expanding its product range by introducing new products and product range,” said Master Capital Services Ltd.

The company also plans to strengthen relationships with its existing customers and expand its customer base by penetrating new geographies through an increase in exports. Furthermore, it intends to focus on deleveraging and decreasing their debt by using the IPO proceeds while improving operational efficiencies through economies of scale, supply chain rationalization, technology enhancements, and effective resource planning, the brokerage firm noted.

It advises investors to invest in the Tolins Tyres IPO for the medium to long term.

Tolins Tyres IPO Details

The bidding for Tolins Tyres IPO commenced on Monday, September 9, and will conclude on Wednesday, September 11. The IPO allotment date is expected to be on September 12, and the IPO listing date is September 16. Tolins Tyres shares will be listed on BSE and NSE.

Tolins Tyres IPO price band is set at ₹215 to ₹226 per share. At the upper-end of the price band, the company plans to raise ₹230 crore from the book-built issue. Tolins Tyres IPO comprises a combination of fresh issue of 88.49 lakh equity shares worth ₹200 crore and offer for sale of 13.27 lakh shares aggregating to ₹30 crore.

The company proposes to utilise the net issue proceeds for repayment of certain outstanding loans, augmentation of long-term working capital requirements, investment in the wholly owned subsidiary, Tolin Rubbers Private Limited, to repay certain of its short-term and long-term borrowings, augmentation of its working capital requirements and general corporate purposes.

Saffron Capital Advisors Pvt Ltd is the book running lead manager of the Tolins Tyres IPO, while Cameo Corporate Services Ltd is the IPO registrar.

Tolins Tyres Ltd is the manufacturer of tyres and tread rubber. The company holds a 2.7% market share in India’s retread tyre segment and 0.06% in the overall tyre market. It has a 0.18% market share in tread rubber globally.

In FY24, Tolins Tyres generated revenue of ₹227.2 crore, with 95% coming from domestic sales in India and ~5% from international markets. Tread rubber accounted for 76% of the revenue, while tyres contributed 24%.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.