Tolins Tyres Ltd has opened its initial public offering (IPO) with an aim to raise ₹230 crore. The shares are priced between ₹215 and ₹226, and the proceeds will be used for working capital, debt repayment, and investment in its subsidiary, Tolin Rubbers. The grey market premium (GMP) suggests high demand, with an expected listing price of ₹265, representing a 17.26% premium from the upper issue price. The IPO received an overwhelming response, with 23.87 times subscription on the final day of bidding, driven by non-institutional, qualified institutional, and retail investors.

IPO Priced Between ₹215 and ₹226, Aims to Raise ₹230 Crore

Share Price Set for Competitive Listing
Tolins Tyres has set the price band for its IPO between ₹215 and ₹226 per share. The company plans to raise ₹230 crore through a combination of a fresh issue of equity shares worth ₹200 crore and an offer-for-sale (OFS) valued at ₹30 crore. This move is expected to provide the necessary financial muscle for future growth and debt management.

Strong Demand Drives Grey Market Premium

Grey Market Premium Signals High Investor Interest
The IPO has witnessed significant interest in the grey market, with the GMP standing at ₹39 per share, leading to an anticipated listing price of ₹265. This represents a 17.26% premium over the upper price band of ₹226, indicating robust demand for the stock even before its official listing. With growing investor confidence, the GMP may rise further as the issue progresses.

IPO Receives 23.87 Times Subscription on Closing Day

Overwhelming Response Across Investor Categories
Tolins Tyres' IPO was oversubscribed 23.87 times by the closing day of bidding, according to data from the National Stock Exchange (NSE). Investors bid for 17,87,61,066 shares against 74,88,372 shares on offer. The subscription breakdown highlights a strong appetite across categories:

Non-institutional investors subscribed 27.41 times
Qualified Institutional Buyers (QIBs) subscribed 25.42 times
Retail Individual Investors (RIIs) subscribed 21.47 times

Funds to Strengthen Working Capital and Reduce Debt

Proceeds to Support Expansion and Debt Repayment
Out of the ₹200 crore raised from the fresh issue, ₹75 crore will be allocated towards long-term working capital requirements, while ₹62.55 crore will go towards repaying the company’s existing debt. Additionally, ₹24.36 crore will be invested in its subsidiary, Tolin Rubbers, for debt repayment and to bolster working capital. This strategic allocation will enhance the company’s financial health, allowing it to meet growing operational needs.

Anchor Investors Contribute ₹69 Crore

Early Investment Sets Positive Tone for IPO
Tolins Tyres successfully raised ₹69 crore from anchor investors, a strong vote of confidence in the company's potential. This early capital injection provides momentum for the IPO, signaling investor belief in the company's long-term growth prospects and financial stability.

Key Player in Tyre Industry with Global Reach

Expanding Export Markets and Industry Leadership
Tolins Tyres is a leading player in the tyre and treads industry, exporting to over 40 countries, including key markets in the Middle East, East Africa, Jordan, Kenya, and Egypt. Its well-established presence in these international markets positions the company for continued growth, backed by its strong export network and reputation for quality products.

Saffron Capital Advisors Leads Public Issue

Trusted Financial Advisor for the IPO
Saffron Capital Advisors Pvt Ltd is the sole lead merchant banker for this IPO, ensuring a smooth and efficient public offering. The firm's experience in handling high-profile IPOs adds credibility to the process, helping to attract a diverse range of investors.