The initial public offering of Tolins Tyres Ltd. has been subscribed 14.10 times on the third and final day of subscription so far. The IPO was subscribed 5.22 times on Tuesday, and 1.8 times on the first day of bidding 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 Wednesday, is set to list on the BSE and the National Stock Exchange.
Issue Details
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Issue opens: Sept. 9.
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Issue closes: Sept. 11.
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Issue price: Rs 215–226 per share.
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Fresh issue: Rs 200 crore.
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Offer for sale: Rs 30 crore.
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Total issue size: Rs 230 crore.
Tolins Tyre IPO – Investment Rationale, Issue Details, Financials, Strategies, Risks And More: DRChoksey
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 is 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.
Tolins Tyres IPO: All You Need To Know
Use Of Proceeds
The company plans to use proceeds of the IPO for the following purposes:
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Repayment of borrowings: Rs 69.9 crore.
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Working-capital requirement: Rs 75 crore.
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Repayment of India subsidiary loans: Rs 15.1 crore.
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Working capital of India subsidiary: Rs 8 crore.
Kross IPO Subscribed 2.56 Times On Day 2
Tolins Tyres IPO Subscription Status: Day Three
The IPO has been subscribed 14.10 times as of 2:21 p.m. on Wednesday.
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Qualified institutional buyers: 7.98 times.
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Non-institutional investors: 17.10 times.
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Retail investors: 16.32 times.
Tolins Tyres GMP Today
The grey market premium of Tolins Tyres is Rs 39 as of 10:24 a.m., implying a 17.26% gain over the IPO price, according to Chittorgarh's unit Investorgain. The estimated listing price based on the GMP is Rs 265 per share.
GMP is not an official price quote for the stock and is based on speculation.
Watch The IPO Adda Here
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Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read red herring prospectus thoroughly before placing bids.
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