Tolins Tyres IPO: Check latest GMP, subscription status, should you apply, other key details

Tolins Tyres IPO: The bidding for the initial public offering (IPO) of tyre manufacturing company Tolins Tyres Ltd began today, September 9, and is witnessing decent demand. The retail portion of the Tolins Tyres IPO has been fully booked within hours of opening.

Tolins Tyres IPO price band is set at ₹215 to ₹226 per share. The ₹230-crore worth Tolins Tyres IPO is a combination of fresh issue of 88.49 lakh equity shares worth ₹200 crore and an offer for sale (OFS) of 13.27 lakh shares aggregating to ₹30 crore.

Tolins Tyres IPO opened for public subscription today, September 9, and will close on September 11. The IPO allotment is expected to be finalized on September 12, and the IPO listing date is September 16. Tolins Tyres shares will be listed on both the stock exchanges, BSE and NSE.

Considering the fair valuations of Tolins Tyres IPO and the strong financial performance of the company, most analysts have recommended subscribing to the issue. Here’s what analysts said.

Should you subscribe to Tolins Tyres IPO?

“At the upper price band of ₹226, Tolin Tyres is valued at a P/E of 34.8x based on FY24 EPS, suggesting a fair valuation in line with its peers. The company has delivered robust growth in Revenue / EBITDA / PAT at a CAGR of 42% / 176% / 542% from FY22 to FY24, driven by capacity expansion and vertical integration. As a leading player in tyre retreading, Tolin also manufactures tyres and plans to expand into the radial tyre market and the aerospace and defense sectors,” said Saral Seth, VP — Institutional Equities at Indsec Securities.

With growth opportunities in agricultural and EV segments, and reasonable valuations, Seth assigns a ‘Subscribe’ rating to the issue.

Analysts at Swastika Investmart also have recommended subscribing to the Tolins Tyres IPO for the long term.

“Tolins Tyres offers product diversity and has a widespread customer base, including domestic and international customers. A smaller player, gradually expanding. Strong financial performance with consistent growth. The IPO’s valuation appears reasonable. Investors seeking long-term exposure to the tyre industry may consider applying for the Tolins Tyres IPO, recognizing the potential challenges posed by the competitive landscape and IPO timing,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

Master Capital Services Ltd. also suggested investors can apply to Tolins Tyres IPO for the medium to 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. Investors looking to invest can invest in the IPO for the medium to long term,” said the brokerage firm in a report.

Tolins Tyres IPO Subscription Status

Tolins Tyres IPO has been subscribed 94% in total so far. The issue received bids for 70.33 lakh shares as against 74.88 lakh shares on the offer, according to NSE data at 12:50 pm.

The IPO has been subscribed 1.75 times in the retail category and 30% in the Non Institutional Investors (NII) category so far. The Qualified Institutional Buyers (QIBs) are yet to bid for the IPO.

Tolins Tyres IPO GMP

Tolins Tyres IPO GMP today, or grey market premium today, is ₹25 per share, according to stock market observers. This indicates that Tolins Tyres shares are trading higher by ₹25 in the grey market than their issue price, or at a premium of 11% at ₹251 apiece as against its IPO price of ₹226 per share.

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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.