All You Need to Know About The Upcoming Tolins Tyres Limited IPO

All You Need to Know About The Upcoming Tolins Tyres Limited IPO

The Tolins Tyres Limited IPO is a promising chance for investors looking to enter a thriving sector of Indian manufacturing. With the increasing demand for tyres in India and globally, Tolins Tyres is in a prime position to capitalize on this growth. Using HDFC Sky's One-Click IPO feature, participating in promising IPOs like this one has become effortless through UPI integration.

Here are 6 compelling reasons to consider before investing in the Tolins Tyres IPO:

1. Legacy in Tyre Manufacturing

Tolins Tyres has been in the tyre industry for over 20 years, offering a solid track record of manufacturing high-quality tyres for various sectors. This legacy underscore its deep understanding of the market and evolving industry dynamics.

2. Presence in Niche Segments

While Tolins caters to conventional two-wheeler and commercial vehicle segments, it has also built a stronghold in niche markets like offroad applications and industrial tyres. This niche presence enables it to serve specialized needs, reducing competition and enhancing profit margins.

3. Favorable Industry Outlook

The tyre industry in India is projected to grow in the coming years due to the expanding automobile market and infrastructure development. Tolins Tyres, with its diverse portfolio and market reach, is strategically positioned to benefit from these industry tailwinds.

4. Expansion into International Markets

Beyond India, Tolins Tyres has been making inroads into international markets, exporting to 40 countries. With the growing global demand for durable and cost-effective tyres, Tolins’ international expansion is a key driver for future growth.

5. Focus on Product Diversification

Tolins Tyres has made significant strides in diversifying its product offerings, from radial tyres for trucks and buses to tyres for farm equipment and offroad vehicles. This product diversification provides a buffer against any downturns in a particular vehicle segment.

6. Strong Promoter Holding and Leadership

The company’s leadership, under the Tolin family, holds a significant 92.64% stake in the business pre-IPO, demonstrating strong promoter confidence. Their decades-long experience ensures that Tolins Tyres remains a leader in the market, with sound business strategies for growth.

About Tolins Tyres Limited

Incorporated in 2003, Tolins Tyres Limited is a leading tyre manufacturer in India with a comprehensive product portfolio that serves the needs of two-wheeler, commercial, offroad, and industrial segments. With state-of-the-art manufacturing facilities and a strong distribution network, the company has made a mark both domestically and internationally.

The company provides tyre retreading solutions in India and exports to 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt. The company operates three manufacturing facilities, with two located at Mattoor in Kalady, Kerala, and the third in Al Hamra Industrial Zone in Ras Al Khaimah, UAE.

Key Details of the IPO

  • IPO Date: September 9, 2024, to September 11, 2024
  • Price Band: ?215 to ?226 per share
  • Face Value: ?5 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 of ?5 (aggregating up to ?30.00 Cr)

Financials of Tolins Tyres Limited

Tolins Tyres Limited has shown consistent growth in recent years, with revenues driven by increased demand for tyres in both domestic and international markets. Here are the numbers from 31 March 2024:

  • Assets: ?221.6 crore
  • Revenue: ?228.69 crore
  • Profit After Tax: ?26.01 crore
  • Net Worth: ?100.53 crore
  • Reserves and Surplus: ?85.07 crore
  • Total Borrowing: ?78.77 crore

Objectives of the IPO

The company proposes to utilize the net proceeds from the fresh issue towards funding the following objects:

  • Repayment and/or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the Company;
  • Augmentation of long-term working capital requirements of the company;
  • Investment in the wholly owned subsidiary, Tolin Rubbers Private Limited, to repay and/ or prepay, in full, certain of its short-term and long-term borrowings and augmentation of its working capital requirements; and
  • General corporate purposes

Conclusion

The Tolins Tyres Limited IPO offers investors an opportunity to be part of a company that has established itself as a leader in the tyre manufacturing industry. With strong growth prospects, strategic expansion plans, and a dedicated niche, Tolins Tyres is well-positioned for long-term success.

Those looking to participate in the IPO must try HDFC Sky’s One-Click IPO feature, through which investors can take advantage of a seamless investment process, leveraging their existing UPI account to invest without hassle.

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