Ahead of IPO, Tolins Tyres raises Rs 69 crore from anchor investors

The Kerala-based Tolins Tyres Ltd has secured ₹69 crore from anchor investors before its initial public offering (IPO) opens for public subscription.

The anchor investors who have been allocated shares include BofA Securities Europe SA, NAV Capital VCC, Chhatisgarh 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 on BSE's website.

The company's ₹230-crore IPO is set to open for public subscription from September 9 to 11. The initial public offering price band is set between ₹215 and ₹226 per share.

IPO for Rs 220 crore

The company's IPO 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  Varkey Tolin and Jerin Tolin will sell shares worth ₹15 crore each through the OFS route. They currently hold an 83.31% stake in the company.

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.

Additionally, ₹24.36 crore will be invested in the company's subsidiary, Tolin Rubbers, to support debt repayment and working capital needs.

Bids can be placed for a minimum of 66 equity shares, with additional shares in multiples of 66.

Exports to 40 countries

Tolins Tyres is a prominent player in the tyre and treads sector and exports its products to 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.

Saffron Capital Advisors Pvt Ltd is the sole lead merchant banker for the public issue.

(By arrangement with livemint.com)