Tolins Tyres IPO: Rs 230 Crore Issue Opens for Subscription on September 9

Kerala-based Tolins Tyres has decided to hit Dalal Street with its Rs. 230-crore initial public offering (IPO) next week on September 9. The firm will announce price band for the issue in coming couple of days.

The Tyre manufacturing company intends to raise Rs. 200 crore via fresh issue component and the remaining Rs. 30 crore will be mobilised through offer-for-sale (OFS) route. Promoters Kalamparambil Varkey Tolin, and his wife Jerin Tolin, who together hold 83.31 percent stake in the company, will be offloading Rs. 15 crore worth shares each via the OFS.

Tolins Tyres IPO Details

Promoters own 92.64 percent stake in the company including 8.47 percent shareholding of Jose Thomas (the father of Jerin Tolin), and the balance 7.36 percent shares are held by public shareholders. The offer will close for bidding on September 11, while the anchor book of the issue will be opened for a day on September 6.

The Tyre retreading solutions provider will pay Rs. 70 crore (out of the net fresh issue proceeds) towards its debt as its outstanding borrowings was Rs. 101.33 crore on consolidated basis as of August 23, 2024.

Further, Rs. 75 crore will be utilised for long-term working capital requirements, Rs. 46.3 crore will be invested in its wholly-owned subsidiary, Tolin Rubbers, and the remaining fresh issue funds will be used for general corporate purposes. The company has reserved half of its IPO size for qualified institutional buyers, 35 percent for retail investors, and the remainder 15 percent for non-institutional investors.

Tolins Tyres IPO Lots