The ₹230-crore IPO from Kerala-based Tolins Tires saw a strong response, especially from retail and non-institutions. The issue has been subscribed 5.22 times so far; the retail investors’ portion received bids for 8.22 times, while that of QIBs and NIIs (non-institution) was subscribed 0.46 times and 4.10 times, respectively. The issue closes for public subscription today.
The IPO hit the market with a price band of ₹215-225. It consists of a fresh issue of equity shares amounting to ₹200 crore and an offer-for-sale (OFS) of equity shares valued at ₹30 crore. Promoters Kalamparambil Varkey Tolin and Jerin Tolin will sell shares worth ₹15 crore each through the OFS route. They currently hold an 83.31 per cent stake in the company.
Bids can be placed for a minimum of 66 equity shares, with additional shares in multiples of 66.
Up to 50 per cent is reserved for QIBs, 35 per cent for retail investors, and 15 per cent for non-institutions (HNIs).
The company said it has raised ₹69 crore from anchor investors ahead of the IPO on Friday.
The anchor investors who have been allocated shares include BofA Securities Europe SA, NAV Capital VCC, Chhattisgarh Investments, Ashika Global Securities, Moneywise Financial Services, Vikasa India EIF I Fund, Invicta Continuum Fund I, and Steptrade Revolution Fund. The company has allocated 30.53 lakh shares to investors at ₹226 each, which is the upper limit of the price band. This brings the total transaction value to ₹69 crore, as detailed in a circular posted on BSE’s website.
The IPO papers said of the ₹200 crore raised from the IPO, ₹75 crore will be allocated to meet the company’s long-term working capital needs, and ₹62.55 crore will be used to repay debt. Besides, ₹24.36 crore will be invested in the company’s subsidiary, Tolin Rubbers, to support debt repayment and working capital needs.
Tolins Tyres, a prominent player in the industry, exports its products to 40 countries, including West Asia, East Africa, Jordan, Kenya, and Egypt. It offers a diverse range of products, including Light Commercial Vehicle Tyres, Off Road/ Agriculture Tires (OTR), Two-wheeler & Three-wheeler Tyres, Tire Tubes & Tire Flaps, Precured Tread Rubber (PCTR), Conventional Tread Rubber, Bonding Gum, Vulcanising Solution, Rope Rubber and Others.
It has three manufacturing facilities: two in Mattoor, Kalady, Kerala, and one in Al Hamra Industrial Zone, Ras Al Khaimah, UAE.
Saffron Capital Advisors Pvt Ltd is the sole lead merchant banker for the public issue.