Tolins Tyres Shares Open Strong, Gain 5% on Listing Day

Tolins Tyres shares debuted below expectations

Tolins Tyres shares saw a 5 percent increase on their first day of trading, hitting an upper circuit of Rs 238.30 per share on the BSE and Rs 239.40 on the NSE, despite a slow start on Monday.

The shares debuted at Rs 227 on the BSE, just Re 1 above the IPO price of Rs 226. On the NSE, they opened Rs 2 higher at Rs 228. While the listing was below market expectations, as unlisted shares of Tolins Tyres had been trading at a premium of around Rs 30 or 13.27 percent before the listing, it indicated only a modest gain for the company’s stock.

Tolins Tyres’ IPO, a book-built offering worth Rs 230.00 crore, included a fresh issue of 8,849,558 shares and an offer for sale of 1,327,434 shares, each with a face value of Rs 5. The share allotment was finalized on Thursday, September 12, 2024.

The public issue received strong interest from investors, with bids for 17,89,26,528 equity shares compared to the 74,88,372 shares on offer. The Retail Individual Investors (RIIs) segment was oversubscribed by 21.52 times, while the non-institutional investors category saw 27.41 times subscription. The Qualified Institutional Buyers (QIBs) portion was subscribed 25.42 times.

Tolins Tyres secured Rs 69 crore from anchor investors in a bidding process completed on September 6, 2024, prior to opening the issue for public subscription. The company plans to use the net proceeds to repay or prepay, in full, certain outstanding loans (including any foreclosure charges), and to bolster its long-term working capital needs.

The company also plans to invest a portion of the primary funds in its wholly-owned subsidiary, Tolin Rubbers Private, to fully repay or prepay certain short-term and long-term borrowings, as well as to enhance working capital requirements and address general corporate purposes. Tolins Tyres is a major player in the tyre and treads industry, exporting its products to 40 countries, including markets in the Middle East, East Africa, Jordan, Kenya, and Egypt.