Tolins Tyres Ltd has set a price band of Rs 215-226 a share for its Rs430 crore initial public offering.
The issue anchor bidding will start on September 6, opening bidding will start on September 9 and the issue will close on September 11.
Finalisation of allotment will be on September 12, refunds and credit of equity shares will be on September 13, and the stock will list on September 16.
The issue comprises of a fresh issue of upto Rs 230 crore and an offer for sale of upto Rs 200 crore by its promoters and existing shareholders.
The tyre retreading solutions provider will pay Rs 70 crore (out of the net fresh issue proceeds) towards its debt as its outstanding borrowings was Rs 101.33 crore on consolidated basis as of August 23. Further, Rs 75 crore will be utilised for long-term working capital requirements, Rs 46.3 crore will be invested in its wholly-owned subsidiary, Tolin Rubbers, and the remaining fresh issue funds will be used for general corporate purposes.
Its major products include two-wheeler, three- wheeler, light commercial vehicle and agricultural tyres, as well as precured tread rubber and other accessories including bonding gum, tyre flap, and vulcanizing solutions. It also exports products to 40 countries, including the Middle East, East Africa, Jordan, Kenya and Egypt.
Tolins Tyres competes with listed peers like Indag Rubber, Vamshi Rubber, TVS Srichakra, GRP, and Elgi Rubber Company earned more than 75 percent of business from the tread rubber segment, while tyres division contributed the remaining portion of the topline.
The company recorded significant growth in net profit at Rs 26 crore for the year ended March 2024, growing more than five-fold over Rs 4.99 crore profit in the previous year despite a sharp increase in finance cost, driven by healthy operating numbers and topline.
Revenue during the year gone by was Rs 227.2 crore, increasing by 92.2 percent from Rs 118.2 crore in the previous financial year 2022-23. EBITDA (earnings before interest, tax, depreciation and amortisation) surged nearly 4 times to Rs 46.4 crore in FY24, compared to Rs 12.3 crore in FY23, with margin nearly doubling to 20.4 percent from 10.4 percent during the same period.
Saffron Capital Advisors is acting as the merchant banker to the issue, while Cameo Corporate Services is the registrar to the IPO.
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