Tolins Tyres Ltd Sets Price Band for Upcoming IPO
Tolins Tyres Ltd has announced a price range of Rs 215 to Rs 226 per share for its upcoming initial public offering (IPO), which is set to open for subscriptions on September 9. The company, based in Kerala, aims to raise a total of Rs 230 crore through this IPO, which will close on September 11. Additionally, the bidding process for anchor investors will take place on September 6.
Structure of the IPO
The IPO consists of a fresh issuance of equity shares amounting to Rs 200 crore and an offer-for-sale (OFS) component worth Rs 30 crore. Promoters Kalamparambil Varkey Tolin and Jerin Tolin plan to sell shares valued at Rs 15 crore each via the OFS route. Currently, they hold an impressive stake of approximately 83.31% in the company.
Utilization of Funds Raised
From the proceeds generated by this IPO, Tolins Tyres intends to allocate funds strategically:
- Long-term Working Capital: A significant portion—Rs 75 crore—will be directed towards enhancing long-term working capital needs.
- Debt Repayment: An additional Rs 62.55 crore is earmarked specifically for settling existing debts.
- Investment in Subsidiary: Furthermore, about Rs 24.36 crore will be invested into Tolin Rubbers, aimed at debt repayment and bolstering its working capital.
Bidding Details and Market Presence
Investors can place bids starting from a minimum lot size of 66 equity shares and can continue in multiples thereafter. Tolins Tyres has established itself as a prominent player within the tyre manufacturing sector and exports its products across more than forty countries worldwide—including regions such as East Africa and various Middle Eastern nations like Jordan and Egypt.
Saffron Capital Advisors Pvt Ltd serves as the sole lead merchant banker overseeing this public issue.
This strategic move marks an important step forward for Tolins Tyres as it seeks not only to strengthen its financial position but also expand its market reach further into international territories while ensuring sustainable growth through effective capital management strategies.
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.
