Tolins Tyres shares make muted stock market debut, list flat at nearly IPO price

Tolins Tyres plans to use the net proceeds from the fresh issue to repay or prepay certain outstanding loans

Shares of Tolins Tyres Limited had a tepid start to its stock market debut on September 16 after listing at Rs 227, a premium of just 0.4 percent over the issue price of Rs 226 per share on the Bombay Stock Exchange (BSE).

The listing gains completely miss grey market estimates where shares were trading at a premium of about 13 percent. The grey market is an unofficial ecosystem where shares start trading much before the offer opens for subscription and continue to trade till the listing day.

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The Rs 230-crore public offer, a combination of a fresh issue and an offer for sale, received robust investor interest after the issue was subscribed 23.61 times on the last day of subscription on Wednesday, September 11.

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The Retail Individual Investors (RIIs) part fetched 20.98 times subscriptions while the category for non-institutional investors subscribed 27.35 times. The portion meant for Qualified Institutional Buyers (QIBs) was subscribed 25.42 times.

Incorporated in 2003, Tolins Tyres Limited is a tyre manufacturing company that offers retreading solutions in India and exports to 40 countries, including regions like the Middle East, East Africa, Jordan, Kenya, and Egypt. The company operates through two main business verticals: tyre manufacturing and tread rubber manufacturing.

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The company plans to use the net proceeds from the fresh issue to repay or prepay certain outstanding loans, including foreclosure charges if applicable. Additionally, the funds will be directed towards augmenting its long-term working capital requirements and investing in its wholly-owned subsidiary, Tolin Rubbers Private Limited, to repay or prepay both short-term and long-term borrowings and enhance its working capital.

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