Mohammad Haris | September 11, 2024, 17:19 IST | New Delhi, India
The Tolins Tyres Ltd IPO, which closed on September 11, has garnered impressive investor interest, with the issue subscribed 24.69 times on its final day. The IPO, valued at ₹230 crore, was priced between ₹215 and ₹226 per share. By the end of the bidding, bids amounted to 17,58,80,694 shares compared to the 71,23,894 shares on offer.
Subscription Breakdown:
- Non-Institutional Investors: 28.71x
- Retail Individual Investors (RIIs): 21.80x
- Qualified Institutional Buyers (QIBs): 26.72x
The IPO opened for public subscription on September 9 and is set to finalize share allotments on September 12. The shares are expected to list on the BSE and NSE on September 16.
Grey Market Premium (GMP):
In the grey market, Tolins Tyres shares are trading ₹39 higher than the issue price, indicating a 17.26% premium. This GMP reflects the market’s positive sentiment and potential listing gain.
Analysts’ Recommendations:
SMC Global suggests that investors with a high-risk appetite might consider the IPO, given Tolins Tyres’ rapid growth and industry potential. However, the tyre manufacturing sector faces challenges due to limited raw material suppliers.
At the upper end of the price band, the stock is priced at a pre-IPO P/E multiple of 26.64 times based on the financial year 2024 earnings per share of ₹8.48.
Anchor Investment:
Ahead of the IPO, Tolins Tyres raised ₹69 crore from anchor investors, including BofA Securities Europe SA and several others. A total of 30.53 lakh shares were allocated to these investors at ₹226 each.
IPO Details:
The ₹230 crore IPO comprises a fresh issue of equity shares worth ₹200 crore and an offer-for-sale (OFS) of ₹30 crore. The promoters, Kalamparambil Varkey Tolin and Jerin Tolin, are offloading shares worth ₹15 crore each. The IPO proceeds will be used for working capital, debt repayment, and investment in the company’s subsidiary, Tolin Rubbers.
Bids could be placed for a minimum of 66 equity shares and in multiples of 66 shares thereafter.
Company Profile:
Tolins Tyres is a prominent player in the tyre and treads industry, exporting to 40 countries including the Middle East and East Africa. Saffron Capital Advisors Pvt Ltd is the sole lead merchant banker for the IPO.