Tolins Tyres IPO: Open/Close Date, Price, Lot Size, Allotment & Subscription

IPO Details

Bidding Dates

To be announced

Minimum Investment

To be announced

Price Range

To be announced

Maximum Investment

To be announced

Retail Discount

To be announced

Issue Size

Up to [●] equity shares aggregating up to ₹ 2,300 million

Investor category and sub category

Retail Individual Investors (RII) | Non-institutional Investors (NII) | Qualified Institutional Buyers (QIB) | Eligible employees |

About Tolins Tyres Limited

Tolins Tyres Limited is a leading player in tyre manufacturing, specialising in bias tyres, precured tread rubber, and ancillary products. Established in 1982, the company has expanded globally, exporting to 40 countries, including the Middle East and Africa. Its profitability, with a CAGR of 155.45% between Fiscal 2021 and 2023, reflects its success.

Tolins Tyres caters to diverse markets, including exports, domestic sales, and OEMs like Marangoni GRP and Kerala Agro Machinery Corporation Ltd. Backward integration ensures quality control from raw materials to manufacturing.

With in-house design capabilities and a network of 3,737 dealers and 8 depots across India, the company maintains high-quality standards and customer satisfaction. Tolins Tyres' forward integration strategy enhances market presence, offering reliable products and services globally.

Industry Outlook:

India leads as the largest market for motorised two-wheelers globally, with 16.25 million units sold domestically in fiscal 2023, representing 76% of the total market volume and 16% by value, amounting to Rs 1,056 billion. With such a large market share, there is a significant opportunity for Tolins Tyres to increase sales volume and revenue by supplying tyres for motorcycles and scooters, catering to the vast consumer base in India.
India's commercial vehicle industry surged 34% in fiscal 2023, nearing pre-pandemic levels. Fiscal 2024 expects steady growth, driven by government spending and robust sectors like construction and mining. Tolins Tyres can capitalise on this by offering specialised tyres, potentially securing contracts with fleet operators and OEMs, boosting revenue.

Tolins Tyres Limited IPO Details

Tolins Tyres Limited IPO Dates

The exact dates are yet to be announced.

Tolins Tyres Limited IPO Price Band

The exact price range is yet to be announced.

Tolins Tyres Limited IPO Lot Size

The exact lot size is not announced yet.

Tolins Tyres Limited IPO Objectives

The company plans to allocate the net proceeds from the issue for the following purposes:

The company plans to allocate ₹625.53 million to fully repay outstanding loans, including any foreclosure charges, reducing financial liabilities and interest expenses.
Allocation of ₹750.00 million to augment long-term working capital needs, ensuring smooth operational efficiency and flexibility in meeting day-to-day expenses.
Allocation of ₹750.00 million to augment long-term working capital needs, ensuring smooth operational efficiency and flexibility in meeting day-to-day expenses.
Allocate remaining funds for general corporate purposes, providing flexibility for unforeseen expenses and strategic initiatives to support company objectives.

Peer Details

The following are the listed peers of Tolins Tyres Limited:

Indag Rubber Limited
Vamshi Rubber Limited
TVS Srichakra Limited
GRP Limited
Elgi Rubber Company Limited

How to Check the Allotment Status of the Tolins Tyres Limited IPO?

Steps to check IPO allotment status on Angel One’s app:

Log in to the Angel One app
Go to the IPO Section and then to IPO Orders.
Select the individual IPO that you had applied for and check the allotment status.
Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Tolins Tyres Limited IPO

Registered office: No. 1/47, M C Road, Kalady, Ernakulam, Aluva-683574, Kerala, India.
Phone: +9172592 87215
E-mail:cs@tolins.com

IPO Financials

Particulars	As at September 30, 2023	Year ending on March 31, 2023	Year ending on March 31, 2022	Year ending on March 31, 2021
Revenue from Operation (in ₹ million)	880.20	1,182.46	1,133.65	1,058.91
Profit After Tax (PAT) (in ₹ million)	126.16	49.92	6.31	7.65
Cash and Cash Equivalents (in ₹ million)	11.27	3.76	4.68	4.01
Return on Net Worth (%)	17.36%	25.70%	5.83%	7.90%
Net Debt (in ₹ million)	774.86	462.21	477.01	455.39
Return on Equity (%)	17.36%	25.70%	5.83%	7.90%
Return on Capital Employed (RoCE) (%)	21.73%	31.49%	14.80%	14.53%
EBITDA (in ₹ million)	217.90	122.61	60.90	56.47

Know before investing

Strengths

Tolins Tyres Limited boasts a diverse product range, offering both tyres and tread rubber across 154 stock-keeping units (SKUs) in the tyre category and 993 SKUs in tread rubber. This extensive catalogue, developed over decades, caters to various market demands and customer requirements, enhancing the company's competitive edge and market presence.
The company prioritises product quality, upholding strict qualitative guidelines and carrying out thorough quality inspections throughout the production process. Tolins Tyres, which has earned accreditations including ISO 9001:2015 and IATF 16949:2016, guarantees uniform quality in all of its products, building client loyalty and confidence.
With over three decades of operations, Tolins Tyres has established enduring relationships with major OEMs and dealers both domestically and globally. This extensive network, coupled with a customer-centric approach and track record of delivering quality and cost-effective solutions, enhances the company's market reach and customer satisfaction.
Tolins Tyres operates three manufacturing facilities, strategically located in India and the UAE, with backward integration capabilities covering raw materials, design, and production processes. This integrated approach enables greater control over production, quality, and delivery timelines, reducing dependency on third parties and enhancing operational efficiency.

Risks

Tolins Tyres Limited relies on a limited number of suppliers for critical raw materials like rubber compounds, carbon black, and nylon fabrics. Any disruption in the supply chain or relationship breakdown with these suppliers could adversely affect production, leading to increased costs, production delays, or material shortages. The absence of long-term contracts with suppliers exposes the company to price volatility and negotiating challenges, impacting profit margins.
A significant portion of Tolins Tyres Limited's revenue comes from automotive original equipment manufacturers (OEMs). Dependency on OEMs exposes the company to fluctuations in the automotive sector, including macroeconomic trends and changes in customer demand. Any alteration or termination of relationships with OEMs could result in decreased demand for Tolins Tyres' products and affect its financial performance.
Tolins Tyres Limited faces outstanding legal proceedings, which, if unfavourable, could tarnish its reputation and impact financial stability. Additionally, the company's manufacturing facilities are susceptible to various risks, including equipment failure, industrial accidents, and natural disasters. Any disruption in manufacturing operations could adversely affect business prospects, financial conditions, and the results of operations.
Tolins Tyres Limited is exposed to product liability claims and costs associated with product recalls. Any defects in products or failure to meet safety standards could lead to legal liabilities, reputation damage, and financial losses. Maintaining relationships with dealers and distributors is crucial for sales, and any failure to do so or inability to meet their expectations could adversely affect the company's business and financial performance.