Tolins Tyres IPO Price: ₹215 to ₹226 per share
IPO Dates: 9 September 2024 – 11 September 2024
Company Overview
Incorporated in 2003, Tolins Tyres Limited is a tyre manufacturing company based in Kerala, India. Initially established as Tolins Tyres Pvt. Ltd by K.P. Varkey in 1982, the company transitioned to a public limited entity in January 2024. It is a prominent player in the tyre and tread sector, providing tyre retreading solutions and exporting to 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.
Business Verticals
Tolins Tyres operates in two primary verticals: tyre manufacturing and tread rubber manufacturing. The company focuses primarily on manufacturing bias tyres for various vehicles and precured tread rubber, along with ancillary products such as bonding gum, vulcanizing solutions, tyre flaps, and tubes. Its product range includes Light Commercial Vehicle Tyres, Off Road/Agricultural Tyres, Two-wheeler & Three-wheeler Tyres, Tyre Tubes, and Tyre Flaps.
Manufacturing Facilities and Capacity
Tolins Tyres operates three strategically located manufacturing facilities—two in Mattoor, Kalady, Kerala, and one in Al Hamra Industrial Zone in Ras Al Khaimah, UAE. The company boasts a consolidated capacity of 1.51 million tyres, 12,486 tons of tread rubber, and 17,160 tons of rubber compound across the company and its subsidiaries. This infrastructure allows Tolins Tyres to be integrated backward with raw materials, design, process engineering, casting, and machining capabilities.
Product Portfolio
Tolins Tyres offers a wide range of products, featuring 163 SKUs in the tyre category and 1,003 SKUs in the tread rubber category. The company has developed 163 new designs and products, along with the necessary moulds for these items. Tolins Tyres caters to various market segments, including exports, domestic sales, and Original Equipment Manufacturers (OEMs) such as Marangoni GRP, Kerala Agro Machinery Corporation Ltd (KAMCO), Redlands Motors, and Tyre Grip.
As of March 31, 2024, the product offerings of Tolins Tyres include:
- Rope Rubber & Other Ancillary Products
- Light Commercial Vehicle Tyres
- Off Road/Agriculture Tyres (OTR)
- Two-wheeler & Three-wheeler Tyres
- Tyre Tubes & Tyre Flaps
- Precured Tread Rubber (PCTR)
- Conventional Tread Rubber
- Bonding Gum
- Vulcanizing Solution
Sales and Distribution Network
Tolins Tyres markets and sells its products under the “Tolins Tyres” brand through a robust distribution network comprising 8 depots and 3,737 dealers nationwide. This extensive sales network ensures wide market reach and accessibility, allowing the company to effectively serve domestic and international markets.
Research and Development
The company has a dedicated R&D centre located within its factory in Kalady, Kerala, staffed by a team of 10 employees. This facility focuses on continuous product and process improvement, contributing significantly to the company’s ability to offer customized solutions and maintain its competitive edge.
Certifications and Quality Standards
Tolins Tyres is committed to maintaining high-quality standards and has obtained certifications such as ISO 9001:2015 and IATF 16949:2016 issued by UK Certifications. These certifications underscore the company’s dedication to quality and consistency across its product range.
Competitive Strengths
- Proven Track Record of Growth: Consistent financial performance and business expansion over the years.
- Wide Product Range and Customised Solutions: Offers a diverse array of products tailored to meet specific customer needs.
- Superior Product Quality: Maintains high standards of quality across all product lines.
- Established Relationships with OEMs and Dealers: Long-standing partnerships with key original equipment manufacturers and a broad dealer network.
- Integrated Manufacturing Operations: In-house capabilities from raw material sourcing to product design and distribution, providing flexibility and efficiency.
- Strategically Located Facilities: Manufacturing units positioned advantageously to optimize logistics and market reach.
- Strong R&D Capabilities: A dedicated research and development team focused on continuous innovation and new product development.
- Experienced Leadership Team: Managed by a skilled and committed team with extensive industry expertise.
Bidding Starts In
Tolins Tyres IPO Specifics:
| IPO Date | September 9, 2024 to September 11, 2024 |
| Listing Date | Monday, September 16, 2024 |
| Face Value | ₹5 per share |
| Price Band | ₹215 to ₹226 per share |
| Lot Size | 66 Shares |
| Total Issue Size | 10,176,992 shares (aggregating up to ₹230.00 Cr) |
| Fresh Issue | 8,849,558 shares (aggregating up to ₹200.00 Cr) |
| Offer For Sale | 1,327,434 shares (aggregating up to ₹30.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 30,659,272 |
| Share holding post issue | 39,508,830 |
Tolins Tyres IPO Timetable (Important Dates)
| IPO Open Date | Monday, September 9, 2024 |
| IPO Close Date | Wednesday, September 11, 2024 |
| Basis of Allotment | Thursday, September 12, 2024 |
| Initiation of Refunds | Friday, September 13, 2024 |
| Credit of Shares to Demat | Friday, September 13, 2024 |
| Listing Date | Monday, September 16, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 11, 2024 |
Tolins Tyres IPO Lot Size
Bidders have the opportunity to bid for a minimum of 66 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 66 | ₹14,916 |
| Retail (Max) | 13 | 858 | ₹1,93,908 |
| S-HNI (Min) | 14 | 924 | ₹2,08,824 |
| S-HNI (Max) | 67 | 4,422 | ₹9,99,372 |
| B-HNI (Min) | 68 | 4,488 | ₹10,14,288 |
Tolins Tyres IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Tolins Tyres Limited IPO Financial Information
| Period Ended | 31 Mar 2024 |
|---|---|
| Assets | 221.6 |
| Revenue | 228.69 |
| Profit After Tax | 26.01 |
| Net Worth | 100.53 |
| Reserves & Surplus | 85.07 |
| Total Borrowing | 78.77 |
Key Performance Indicator – Tolins Tyres IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 892.9 Cr. |
| EPS | ₹8.48 |
| P/E (x) | 26.64 |
| ROE | 25.87% |
| ROCE | 36.08% |
| Debt / Equity | 0.78 |
| RoNW | 25.87% |
| P/BV | 6.14 |
Objects of the Issue:
The Company plans to use the net proceeds from the fresh issue to fund the following objectives:
- General corporate purposes.
- Repayment and/or prepayment in full of certain outstanding loans, including any foreclosure charges, if applicable.
- Augmentation of the company’s long-term working capital requirements.
- Investment in the wholly owned subsidiary, Tolin Rubbers Private Limited, to repay and/or prepay in full its short-term and long-term borrowings, as well as to enhance its working capital requirements.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
