Overwhelming response to Tolins Tyres IPO, oversubscribed 24 times

Kerala-based Tolins Tyres' initial public offerings (IPO), which opened for subscription on September 9, was subscribed 23.89 times on Wednesday's final day of bidding.

The IPO saw an overwhelming response from all categories, and received 17,89,26,528 applications against 74,88,372 shares offered.

The subscription breakdown was particularly notable across various segments: the retail investor segment experienced a subscription rate of 21.52 times, non-institutional investors subscribed 27.41 times, and Qualified Institutional Buyers had a bidding rate of 25.42 times.

To be listed next week  

The company plans to raise around ₹230 crore through its offering, which will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on September 16.

The IPO price range is set between ₹215 and ₹226 per share. Before the public subscription, Tolins Tyres secured ₹69 crore from anchor investors, who were allocated 30.53 lakh shares at ₹226 per share, the upper limit of the price band, resulting in a total transaction amount of ₹69 crore.

Promoters Kalamparambil Varkey Tolin and Jerin Tolin will each sell ₹15 crore worth of shares through the offer for sale (OFS). They currently own an 83.31% stake in the company.

Saffron Capital Advisors Private Limited is serving as the book-running lead manager for the IPO, while Cameo Corporate Services Limited is acting as the registrar.

Tolins Tyres was established in 2003 and is one of the top tyre manufacturing companies in India. It exports its products to 40 countries and specialises in tyre retreading solutions. The company offers a wide range of products, such as tread rubber, bonding gum, tyre flaps, and vulcanising solutions, in addition to tyres for two-wheelers, three-wheelers, light commercial vehicles, and agricultural machinery.

(By arrangement with livemint.com)