Tolins Tyres IPO subscribed 5.2x on day 2; check latest GMP

The company has fixed a price band of Rs 215-226 per share for its initial public offering (IPO).

Tolins Tyres IPO got subscribed 5.20 times on day 2 of subscription. The initial share sale got fully subscribed within hours of opening of bidding on Monday and ended the first day with an overall over-subscription of 1.80 times.

The initial share sale has received bids for 3.89 crore shares against 74.88,372 lakh shares on offer, according to the NSE data.

The Retail Individual Investors' portion was booked 8.39 times while the quota for non-institutional investors got subscribed 4.07 times. The Qualified Institutional Buyers (QIBs) part got subscribed 45 percent. The issue has mopped up Rs 69 crore from anchor investors.

Shares of Tolins Tyres are commanding a grey market premium of Rs 40 in the unlisted market, reflecting a premium of nearly 18 percent over the issue price.

The company has fixed a price band of Rs 215-226 per share for its initial public offering (IPO).

The Kerala-based company’s initial public offering (IPO) consists of a fresh issue of equity shares worth Rs 200 crore and an offer-for-sale (OFS) of equity shares amounting to Rs 30 crore. Promoters Kalamparambil Varkey Tolin and Jerin Tolin will sell shares worth Rs 15 crore each through the OFS route. Currently, they hold an 83.31 percent stake in the company.

Out of the Rs 200 crore IPO proceeds, Rs 75 crore will be allocated to meet the company's long-term working capital needs, while Rs 62.55 crore will be used to repay debt.

Additionally, Rs 24.36 crore will be invested in the company’s subsidiary, Tolin Rubbers, to help repay its debt and support its working capital needs.

Tolins Tyres is a major player in the tyre and treads industry, exporting its products to 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.

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