Tolins Tyres Ltd Secures Rs 69 Crore from Anchor Investors Ahead of IPO
Tolins Tyres Ltd has successfully raised Rs 69 crore from anchor investors in anticipation of its upcoming initial public offering (IPO), which is set to open for public subscription soon.
Key Investors and Share Allocation
The company has allocated shares to a group of prominent anchor investors, including 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. A total of 3.053 million shares were issued at a price of Rs 226 each—the maximum limit within the established price range—culminating in a significant transaction valued at Rs 69 crore as detailed in an announcement on the Bombay Stock Exchange (BSE) website.
IPO Details and Structure
Tolins Tyres is preparing for an IPO worth Rs 230 crore that will be available for public subscription from September 9 to September 11. The company has set a price band ranging between Rs 215 and Rs 226 per share for this offering.
This IPO comprises two components: a fresh issuance of equity shares amounting to Rs 200 crore alongside an offer-for-sale (OFS) component totaling Rs 30 crore. The promoters—Kalamparambil Varkey Tolin and Jerin Tolin—plan to divest shares worth Rs 15 crore each through the OFS mechanism. Currently, they hold an impressive stake of approximately 83.31% in the firm.
Utilization of Funds Raised
From the proceeds generated by this IPO amounting to Rs 200 crore, Tolins Tyres intends to allocate funds strategically:
- Approximately Rs 75 crore will be directed towards enhancing long-term working capital.
- An estimated sum of ₹62.55 crores will be utilized for debt repayment.
- Additionally, around ₹24.36 crores is earmarked for investment into its subsidiary Tolin Rubbers aimed at settling debts and bolstering working capital needs.
Investors can place bids starting with a minimum purchase requirement of just one lot consisting of 66 equity shares, with subsequent bids allowed in multiples thereof.
Company Overview
As a prominent entity within the tyre manufacturing sector, Tolins Tyres exports its products across 40 countries, including regions such as the Middle East and East Africa along with nations like Jordan, Kenya, and Egypt—a testament to its expansive market reach.
Advisory Support
Saffron Capital Advisors Pvt Ltd serves as the exclusive lead merchant banker overseeing this public issue process.
Tolins Tyres Ltd’s strategic move towards raising capital through their forthcoming IPO reflects their commitment not only towards growth but also financial stability within their operational framework while expanding their international footprint significantly.
Pratardan Mishra is a passionate Content Writer and Web Developer with a deep commitment to nationalism and political advocacy. Specializing in national issues, he utilizes expertise in writing to craft compelling narratives that champion patriotic values and engage politically minded audiences.
