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Pic Courtesy: tolinstyres.com
Kerala-based tyre manufacturer Tolins Tyres Limited is gearing up to hit the stock market with its initial public offering (IPO) from September 9 to September 11. The company is looking to raise ₹230 crore with a price band set between ₹215 and ₹226 per share. At the upper end of the price band, the company will have a market capitalization of ₹893 crore.
IPO Details
The IPO will comprise a fresh issue of equity shares worth ₹200 crore and an offer for sale (OFS) of ₹30 crore by the promoters. The Tolins family, which currently holds a 92.64% stake in the company, will be divesting a portion of their shares as part of the OFS. The company is expected to debut on the stock market on September 16.
The funds raised from the IPO will primarily be used to repay existing loans, enhance working capital, and invest in the company’s subsidiary, Tolin Rubbers Private Limited. The remaining funds will be used for general corporate purposes.
About Tolins Tyres
Tolins Tyres was founded in 1982 by late KP Varkey, initially focusing on the manufacture of tread rubber – specialized rubber material used to replace the worn-out tread on a tyre during the retreading process, restoring the tyre’s grip, traction, and overall performance.
The company has established itself as a leading provider of tyre retreading solutions across India, with exports reaching 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt. Apart from tyre retreads, the company also sells tyres for light commercial vehicles, agricultural vehicles, and two/three-wheelers under the “Tolins Tyres” brand.
Headquartered in Mattoor, Kalady, the company is led by Chairman and Managing Director Kalamparambil Varkey Tolin. The company has three manufacturing facilities, with two located in Mattoor and the third one in the Al Hamra Industrial Zone in Ras Al Khaimah, UAE.
KV Tolin and his wife Jerin Tolin—together hold 83.31% of the shares, while Jerin Tolin’s father, Jose Thomas, owns 8.47%. The total promoter holding pre-offer stands at 92.64% of the paid-up equity capital.
Financials
In FY 2024, Tolins Tyres reported consolidated revenue of ₹227 crore and a profit of ₹26 crore. Of the total revenue, ₹55 crore (24%) came from new tyres, while ₹172 crore (76%) was generated from the sale of tread rubber. Total outstanding consolidated debt as on August 23 stood at Rs 101 crore.
