Tolins Tyres IPO begins, retail portion fully booked within hours

The bidding for the initial public offering (IPO) of Kerala-based tyre manufacturing company Tolins Tyres Ltd., which began on September 9 is witnessing decent demand. 

The retail portion of the Tolins Tyres IPO was fully booked within hours of opening.

Price band

Tolins Tyres IPO price band is set at Rs 215 to Rs 226 per share. The Rs 230-crore worth Tolins Tyres IPO is a combination of fresh issue of 88.49 lakh equity shares worth Rs 200 crore and an offer for sale (OFS) of 13.27 lakh shares aggregating to Rs 30 crore.

Tolins Tyres IPO, whcih opened for public subscription today will close on September 11. The IPO allotment is expected to be finalized on September 12, and the IPO listing date is September 16. Tolins Tyres shares will be listed on both the stock exchanges, BSE and NSE.

Considering the fair valuations of Tolins Tyres IPO and the strong financial performance of the company, most analysts have recommended subscribing to the issue. Here’s what analysts said.

Should you subscribe to Tolins Tyres IPO?

“At the upper price band of ₹226, Tolin Tyres is valued at a P/E of 34.8x based on FY24 EPS, suggesting a fair valuation in line with its peers. The company has delivered robust growth in Revenue / EBITDA / PAT at a CAGR of 42% / 176% / 542% from FY22 to FY24, driven by capacity expansion and vertical integration. As a leading player in tyre retreading, Tolin also manufactures tyres and plans to expand into the radial tyre market and the aerospace and defense sectors,” said Saral Seth, VP — Institutional Equities at Indsec Securities.

With growth opportunities in agricultural and EV segments, and reasonable valuations, Seth assigns a ‘Subscribe’ rating to the issue.

Analysts at Swastika Investmart also have recommended subscribing to the Tolins Tyres IPO for the long term.

“Tolins Tyres offers product diversity and has a widespread customer base, including domestic and international customers. A smaller player, gradually expanding. Strong financial performance with consistent growth. The IPO’s valuation appears reasonable. Investors seeking long-term exposure to the tyre industry may consider applying for the Tolins Tyres IPO, recognizing the potential challenges posed by the competitive landscape and IPO timing,” said Shivani Nyati, Head of Wealth at Swastika Investmart Ltd.

Grey market premium (GMP)

Tolins Tyres IPO GMP today, or grey market premium today, is Rs 25 per share, according to stock market observers. This indicates that Tolins Tyres shares are trading higher by Rs 25 in the grey market than their issue price, or at a premium of 11% at Rs 251 apiece as against its IPO price of Rs 226 per share.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint/english.dhanamonline. We advise investors to check with certified experts before making any investment decisions.

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