Tolins Tyres IPO subscription status Day 1: Issue subscribed nearly 2x; check latest GMP

The issue of the Kerala-based company has a fixed a price band of Rs 215-226 per share for its maiden share sale.

Tolins Tyres initial public offer (IPO) got fully subscribed hours after opening for subscription on September 9. On Friday, the company announced that it has mopped up Rs 69 crore from anchor investors.

The initial share sale received bids for 1.27 crore shares against 74.88 lakh on offer, as per NSE data till 4:45 pm, translating into 1.71 times subscription.

The portion for Retail Individual Investors (RIIs) garnered 3.02 times subscription while the quota for non-institutional investors got subscribed 75 percent.

The issue of the Kerala-based company has a fixed a price band of Rs 215-226 per share for its maiden share sale, which is a combination of fresh issue of equity shares worth Rs 200 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 30 crore in which promoters -- Kalamparambil Varkey Tolin and Jerin Tolin -- will offload shares worth Rs 15 crore each. They own 83.31 per centstake in the company at present.

According to multiple websites that track the grey market premium activities, the shares of Tolins Tyres are commanding a GMP in the price range of Rs 30 in the unregulated market, indicating a premium of over 13 percent.

Out of the Rs 200 crore raised through the IPO, Rs 75 crore will be allocated to meet the company’s long-term working capital needs, while Rs 62.55 crore will go towards debt repayment.

In addition, 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 prominent player in the tyre and treads industry, exporting its products to 40 countries, including regions like the Middle East, East Africa, Jordan, Kenya, and Egypt.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.