Tolins Tyres Listing: Stock makes muted market debut, lists with a mere 1% premium at ₹228

Tolins Tyres made a modest market debut on Monday, September 16, with its shares listing at ₹228 on the NSE, reflecting a slight 1% premium over its issue price of ₹226 per share. However, the stock jumped after the listing to ₹239 apiece, gaining by 5%. On the BSE, the shares were listed at ₹227 each.

The company's mainboard IPO, worth ₹230 crore, was open for subscription from September 9 to 11, 2024, with a price band set between ₹215 and ₹226. The offering comprised a fresh issue of 0.88 crore shares amounting to ₹200 crore and an offer for sale of 0.13 crore shares totaling ₹30 crore. The IPO received strong investor demand, with an overall subscription of 25 times.

Non-institutional investors showed high interest, subscribing 28 times, while QIBs followed closely with a 26-times subscription rate. Retail investors also demonstrated significant engagement, with their portion subscribed 22.45 times, as per data from Chittorgarh.com.

The company plans to use the net proceeds from the fresh issue to fully repay or prepay certain outstanding loans, including any foreclosure charges. Additionally, part of the funds will be allocated towards strengthening the company's long-term working capital.

Tolins Tyres also intends to invest in its subsidiary, Tolin Rubbers Private Limited, to address its short- and long-term borrowing needs and support working capital requirements. The remaining proceeds will be directed towards general corporate expenses.

About Tolins Tyres

The company is a leading player in the tyre & treads industry with an all-India presence and a diverse product range. It is one of the companies that are present in both verticals—manufacturing of new tyres and tread rubber.

It has established itself as a major tyre retreading solutions provider across India and exported to 40 foreign countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.

The company is primarily engaged in the manufacturing of bias tyres for a comprehensive array of vehicles (including light commercial, agricultural, and two- and three-wheeler vehicles) and precured tread rubber and is also involved in the manufacturing of ancillary products like bonding gum, vulcanizing solution, tyre flaps, and tubes.

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Disclaimer: We advise investors to check with certified experts before taking any investment decisions.