Tolins Tyres Limited is coming up with an IPO worth INR 230 crores, consisting of a fresh issue of 0.88 crore shares worth INR 200 crores and an offer to sell 0.13 crore shares worth INR 30 crores. The company aims to repay loans, boost working capital, invest in Tolin Rubbers, and support general purposes.
Tolins Tyres IPO – Important Dates
| Tolins Tyres Limited IPO Date | September 9, 2024 to September 11, 2024 |
| Tolins Tyres Limited IPO L-isting Date | September 16, 2024 |
| Tolins Tyres Limited IPO Price | INR 215-226 per share |
| Tolins Tyres Limited IPO Lot Size | 66 Shares |
| Tolins Tyres Limited IPO Total Issue Size | INR 230 crores |
| Tolins Tyres Limited IPO Basis of Allotment | September 12, 2024 |
| Tolins Tyres Limited IPO Initiation of Refunds | September 13, 2024 |
| Tolins Tyres Limited IPO Credit of Shares to Demat | September 13, 2024 |
| Tolins Tyres Limited IPO Issue Type | Book Built Issue IPO |
| Tolins Tyres Limited IPO Listing At | BSE, NSE |
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Tolins Tyres Limited IPO – Company Profile
Tolins Tyres Limited is India’s leading manufacturer and retreading of tyres, exporting to 40 countries. Their products include tyres for various vehicles, procured tread rubber, and accessories like bonding gum and vulcanizing solutions.
Marketing tyres for light commercial, agricultural, and two/three-wheeler vehicles, the brand serves domestic and international markets. It has built a strong dealer network and OEM partnerships, earning recognition for high-quality products and long-term customer relationships.
Backward and forward-integrated, the company controls raw materials, design, and sales through 8 depots and 3,737 dealers. Strengths in efficiency, quality control, and innovation drive growth, and all products are BIS-certified for the Indian market.
Tolins Tyres Ltd IPO Fundamental Analysis
Tolins Tyres Limited’s financial analysis reveals a mixed performance. Revenue increased steadily, supported by higher profitability, equity growth, improved EPS, stronger RoNW, enhanced liquidity, and efficient inventory management, indicating overall financial strength.
- Revenue Trend: The revenue decreased from ₹1,133.65 million in March 2022 to ₹1,182.46 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 2,272.18 million.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹6.40 million in March 2022 to ₹261.29 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹0.35 in March 2022 to ₹9.52 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has risen from 5.83% to 25.87%, indicating an increase in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
- Inventory Turnover Ratio: There’s an increase in the Inventory Turnover Ratio, which might suggest strong sales or efficient inventory management.
Tolins Tyres IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 1,133.65 | 1,182.46 | 2,272.18 |
| Equity (₹ in Million) | 108.25 | 194.23 | 1,005.33 |
| Expenses (₹ in Million) | 1,135.32 | 1,126.52 | 1,957.95 |
| Profit and Loss After Tax (₹ in Million) | 6.40 | 49.98 | 261.29 |
| RoNW (%) | 5.83 | 25.70 | 25.87 |
| NAV per Equity Share (₹) | 5.98 | 9.92 | 36.80 |
| Diluted EPS only (₹) | 0.35 | 2.55 | 9.52 |
| Total Assets (in millions) | 991.42 | 838.24 | 2,215.98 |
| Total Liabilities (in millions) | 883.17 | 644.01 | 1,210.65 |
| Debt Equity Ratio | 4.51 | 2.42 | 0.78 |
| Current Ratio (in time) | 1.66 | 17.16 | 14.41 |
| Inventory Turnover Ratio | 0.19 | 0.30 | 0.37 |
Tolins Tyres Limited IPO Peer Comparison
Tolins Tyres Limited shows solid financial metrics compared to peers like Indag Rubber, Vamshi Rubber, and Elgi Rubber. While TVS Srichakra and GRP Ltd lead in scale, Tolins demonstrates solid growth and profitability.
| Company | Type of financial | Revenue from Operations (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic & Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Tolins Tyres Limited | Consolidated | 2,272.18 | 5 | – | 9.52 | 25.87 | 36.80 |
| Indag Rubber Limited | Consolidated | 2,511.85 | 2 | 39.94 | 6.15 | 6.79 | 87.46 |
| Vamshi Rubber Limited | Standalone | 774.21 | 10 | 27.94 | 1.87 | 4.46 | 32.54 |
| TVS Srichakra Limited | Consolidated | 29,260.00 | 10 | 33.76 | 140.98 | 9.70 | 1,451.55 |
| GRP Ltd | Consolidated | 4,613.79 | 10 | 24.07 | 169.78 | 13.58 | 1,250.57 |
| Elgi Rubber Company Limited | Consolidated | 3,864.45 | 1 | 45.12 | 2.33 | 6.15 | 37.91 |
Tolins Tyres Ltd IPO Objective
The main objective of Tolins Tyres Limited is to repay outstanding loans, enhance long-term working capital, and invest in its subsidiary, Tolin Rubbers Private Limited, for repaying borrowings and boosting its working capital.
- Repayment and prepayment, in total, of certain outstanding loans (including foreclosure charges, if any) availed by their company: The company intends to utilize INR 69.97 crores from the Net Proceeds to repay or prepay outstanding loans, reduce debt-servicing costs, improve the debt-equity ratio, and enhance financial flexibility for future growth.
- Augmentation of long-term working capital requirements of the company: The company intends to utilize INR 75 crores from the Net Proceeds to partially meet its working capital requirements, ensure sufficient inventory, shield against price volatility, and maintain competitiveness in a capital-intensive industry.
- Investment in their wholly owned subsidiary, Tolin Rubbers Private Limited (“TRPL”), to repay and prepay, in total, certain of its short-term and long-term borrowings and augmentation of its working capital requirements: The company aims to utilize INR 23.15 crores from the Net Proceeds to invest in TRPL, with INR 15.15 crores for loan repayment/prepayment and INR 8 crores for augmenting its working capital requirements.
- General Corporate Purposes: The company plans to use the net proceeds for general corporate purposes, including contingencies, marketing, brand building, technology infrastructure, strategic initiatives, acquisitions, and covering any shortfall in the stated objectives.
Tolins Tyres IPO Risks And Challenges
Tolins Tyres Limited’s risk includes reliance on limited raw material suppliers, dependence on automotive OEMs, and potential disruptions at their manufacturing facilities in Kalady, Kerala, and Ras Al Khaimah, UAE, which could impact operations and financial stability.
- The tyre manufacturing industry faces challenges due to limited suppliers of critical raw materials like natural rubber and carbon black. Lack of long-term contracts and price volatility could adversely impact business operations and financial stability.
- Their business heavily relies on automotive OEMs, making it vulnerable to the automotive sector’s performance. Any disruption in relationships with OEMs or shifts in industry demand could significantly impact their financial condition and operations.
- Dependence on their manufacturing facilities in Kalady, Kerala, and Ras Al Khaimah, UAE, poses risks. Any disruption or shutdown at these sites could materially impact their business operations, financial health, and prospects.
Tolins Tyres Ltd IPO – Industry & Market Potential
The Indian two-wheeler industry is poised for growth through 2029, driven by favourable economic conditions, rural demand, EV expansion, technological advancements, and the introduction of CNG powertrains. Sales are projected to reach 25-27 million units at a 6-8% CAGR.
Domestic sales of Photovoltaic (PV) products, which constituted 85.4% of the industry in fiscal 2023, are expected to grow at a 4.5-6.5% CAGR from fiscal 2024 to 2029. Exports are forecast to grow at a 7-9% CAGR, reaching a 15.6% share by fiscal 2029.
The Indian passenger vehicle industry grew at a 5% CAGR from fiscal 2019-24, driven by strong SUV demand and new launches. It achieved record-high sales in fiscal 2024. India’s low car penetration highlights significant growth potential.
Tolins Tyres Limited IPO – Type of Offer
Tolins Tyres Limited plans a fresh issue of shares, seeking INR 200 crores to repay loans, boost working capital, invest in Tolin Rubbers, and support general purposes. Additionally, the company proposes an offer for sale, intending to sell 0.13 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 200 crores. The company intends to utilize the proceeds from the fresh issue for funding, repay loans, boost working capital, invest in Tolin Rubbers, and support general purposes.
- Offer for sale: Tolins Tyres Limited is offering to sell 0.13 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Dr. Kalamparambil Varkey Tolin | – |
| Jerin Tolin | – |
Tolins Tyres IPO Offer Size
The offer size of Tolins Tyres Limited is INR 230 crores, consisting of a fresh issue of 0.88 crore shares worth INR 200 crores and an offer to sell 0.13 crore shares worth INR 30 crores. The company seeks funds to repay loans, boost working capital, invest in Tolin Rubbers, and support general purposes.
Tolins Tyres Limited IPO Allotment Structure
Tolins Tyres Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
Read more Tolins Tyres IPO Allotment Status
How to apply for Tolins Tyres IPO?
To apply for the Tolins Tyres Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Tolins Tyres Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Tolins Tyres Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
Read more Tolins Tyres Limited IPO Day 1 Subscription
How do you check Tolins Tyres IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Tolins Tyres Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Tolins Tyres Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Tolins Tyres Limited IPO:
● Registrar’s Website: Visit the website of Cameo Corporate Services Limited, the registrar of the Tolins Tyres Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Read more Tolins Tyres Limited IPO Day 2 Subscription
Tolins Tyres Ltd IPO Offer Registrar
The registrar for the Tolins Tyres Limited IPO is Cameo Corporate Services Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
CAMEO CORPORATE SERVICES LIMITED
Subramanian Building No. 01, Club House Road,
Chennai – 600 002, India.
Telephone: +91 44 4002 0700
Email: [email protected]
Website: www.cameoindia.com
Read more Tolins Tyres Limited IPO Day 3 Subscription
Tolins Tyres IPO – FAQs
1. What is the allotment date of the Tolins Tyres IPO?
The allotment date of the Tolins Tyres Limited IPO is September 12, 2024.
2. What is the price band of the Tolins Tyres IPO?
The price band of the issue is INR 215-226 per share.
3. What is the size of the Tolins Tyres IPO?
The offer size of Tolins Tyres Limited is INR 230 crores, consisting of a fresh issue of 0.88 crore shares worth INR 200 crores and an offer to sell 0.13 crore shares worth INR 30 crores. The company seeks funds to repay loans, boost working capital, invest in Tolin Rubbers, and support general purposes.
4. What is the listing date of the Tolins Tyres IPO?
The listing date of Tolins Tyres Limited’s IPO is September 16, 2024.
