The subscription period for the initial public offering (IPO) of Tolins Tyres Ltd commenced today, September 9. This IPO is a book-built issue valued at Rs 230 crore, which includes a fresh issuance of 8.8 million shares totaling Rs 200 crore and an offer for sale of 0.013 million shares amounting to Rs 30 crore.
Investors have until Wednesday, September 11, 2024, to submit their applications for this IPO. The price range has been established between Rs 215 and Rs 226 per share.
The allocation date is anticipated to be confirmed on Thursday, September 12, 2024. Following this process, shares of Tolins Tyres are expected to debut on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Monday, September 16, 2024.
To participate in the IPO, investors must apply for a minimum lot size of 66 shares at a total cost of approximately Rs 14,916.
The company intends to use the proceeds from this fresh issue primarily for repaying certain existing loans and enhancing its long-term working capital needs while also investing in its subsidiary.
Saffron Capital Advisors Private Limited serves as the lead manager overseeing Tolins Tyres’ IPO process; Cameo Corporate Services Limited acts as the registrar managing the issuance details.
Current Market Insights
As per recent reports from grey market sources tracking unofficial trading prices before listing day activities commence; Tolins Tyres’ grey market premium (GMP) stands at around Rs 25.
On Day One of this public offering—September 9—Tolins Tyres’ IPO had received subscriptions amounting to only about one-third (0.32 times). Specifically within categories: retail investors subscribed at a rate of approximately one-half (0.59 times), while non-institutional investors showed lower interest with just one-twelfth (0.12 times). The qualified institutional buyers category had yet to see any subscriptions by that time in the morning hours.
Is Investing in Tolins Tyres IPO Worth It?
According to insights from Swastika Investmart analysts; those looking towards long-term investments within the tyre sector might find it beneficial to consider applying for Tolins Tyres’ upcoming IPO.
Analysts highlight that Tolins Tyres boasts product variety alongside an extensive customer base while steadily expanding operations with solid financial performance marked by consistent growth patterns over time. They also note that current valuations appear attractive based on their assessments.
Indsec has similarly recommended subscribing due not only because of reasonable valuations but also due potential growth avenues present particularly within agricultural sectors as well as electric vehicle markets which are gaining traction rapidly across India’s economy today!
Overview: About Tolins Tyres
Founded back in 2003, Tolins Tyres specializes in manufacturing tyres along with providing retreading solutions throughout India while exporting products across 40 countries globally!
Their product lineup encompasses various types including tyres designed specifically for two-wheelers three-wheelers light commercial vehicles plus agricultural applications! Additionally they produce tread rubber along with essential accessories such as bonding gum tyre flaps vulcanizing solutions etcetera!
With three operational manufacturing plants under its belt plus maintaining 163 stock-keeping units dedicated solely towards tyre production they’ve established eight depots nationwide supported by an impressive network comprising over 3,737 dealers spread throughout India!
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