Tolins Tyres Limited IPO

Tolins Tyres IPO is poised to open for subscription on September 9, 2024, featuring a book-built issue valued at ₹203.00 crores. This IPO includes a fresh issue of 0.88 crore shares worth ₹200.00 crores and an offer for sale of 0.01 crore shares, amounting to ₹3.00 crores. With a price band set between ₹215 and ₹226 per share, the minimum investment for retail investors is ₹14,916 for a lot size of 66 shares. 

The IPO will close on September 11, 2024, with allotments expected by September 12, 2024. Tolins Tyres is scheduled to list on the BSE and NSE on September 16, 2024. Saffron Capital Advisors is the lead manager for this IPO investment, while Cameo Corporate Services will act as the registrar.

Tolins Tyres Limited IPO details

With a price band of ₹215 to ₹226 per share, it offers investors a chance to participate in this exciting opportunity. Check the table below for detailed information.

Tolins Tyres Limited IPO timeline

Here's a timeline overview for the Tolins Tyres IPO, outlining key dates and processes. This schedule includes important milestones from the IPO opening to the listing on the stock exchanges. For detailed timings and processes, refer to the table below.

Tolins Tyres Limited IPO review

Incorporated in 2003, Tolins Tyres Limited is a tyre manufacturing company providing retreading solutions in India and exporting to 40 countries, including the Middle East and East Africa. The company operates across two verticals: tyre manufacturing and tread rubber manufacturing. 

As of March 31, 2024, Tolins Tyres offers a range of products, including tyres for light commercial vehicles, two-wheelers, and agricultural use, as well as various accessories. With three manufacturing facilities in Kerala, India, and Ras Al Khaimah, UAE, the company manages 163 tyre SKUs and 1,003 tread rubber SKUs. 

Certified with ISO 9001:2015 and IATF 16949:2016, Tolins Tyres has a strong domestic presence with eight depots and 3,737 dealers nationwide.

Tolins Tyres Limited financial information

This will provide an overview of Tolins Tyres Limited's key performance indicators, showcasing the company's financial health. Key metrics include a strong Return on Equity (ROE) of 25.87%, a strong Return on Capital Employed (ROCE) of 36.08%, and a Debt-to-Equity ratio of 0.78. Additionally, the Return on Net Worth (RoNW) stands at 25.87%, with a Profit After Tax (PAT) margin of 11.45%. For detailed financial insights, refer to the table below. 

Tolins Tyres Limited IPO strengths

1. Diverse product range: Tolins Tyres Limited offers a broad portfolio with 154 SKUs in tyres and 993 SKUs in tread rubber, meeting various market needs and enhancing competitive advantage.
2. Commitment to quality: They follow strict quality standards and hold ISO 9001:2015 and IATF 16949:2016 certifications, ensuring consistent product quality and building customer trust.
3. Established network: Over three decades, Tolins Tyres has forged strong relationships with major OEMs and dealers globally, enhancing market reach and customer satisfaction through reliable, cost-effective solutions.
4. Strategic manufacturing: With three manufacturing facilities in India and the UAE, the company's backward integration in raw materials and production processes ensures efficient operations and reduced dependency on third parties.

Tolins Tyres Limited IPO challenges

1. Supplier dependence: Relying on a few key suppliers for critical materials exposes Tolins Tyres to potential disruptions, cost increases, and supply chain issues due to a lack of long-term contracts.
2. OEM dependency: Heavy reliance on automotive OEMs makes Tolins Tyres vulnerable to sector fluctuations and changes in demand, which could impact revenue and financial stability.
3. Legal and operational risks: Ongoing legal proceedings and potential risks at manufacturing sites, such as equipment failures or natural disasters, could affect the company's reputation and operational efficiency.
4. Product liability: Exposure to product liability claims and recall costs could lead to legal and financial repercussions, damaging the company's reputation and affecting business performance.

Why Tolins Tyres IPO is a promising long-term investment

Tolins Tyres Limited offers a compelling opportunity among upcoming IPOs to invest in, with shares priced between ₹215 and ₹226 each. The company stands out in the tyre manufacturing sector due to its diverse product range, rigorous quality standards, and extensive network. 

Despite challenges like supplier dependence and OEM reliance, Tolins Tyres has shown strong financial performance, with a reported revenue of ₹228.69 crores and a profit of ₹26.01 crores in 2024. Given these positive financial metrics and strategic advantages, the Tolins Tyres IPO is an attractive option for investors seeking long-term gains.

FAQs

1. What is Tolins Tyres IPO?

Tolins Tyres IPO is a main-board offering of 8,982,300 equity shares with a face value of ₹5 each, amounting to ₹203.00 crores. Shares are priced between ₹215 and ₹226 each, with a minimum lot size of 66 shares. The IPO opens on September 9, 2024, and closes on September 11, 2024. Cameo Corporate Services Limited is the registrar, and the shares are scheduled to be listed on BSE and NSE.

2. When will Tolins Tyres IPO open?

The Tolins Tyres IPO will open for subscription on September 9, 2024, and will close on September 11, 2024.

3. When is the Tolins Tyres IPO listing date?

The tentative listing date for Tolins Tyres IPO is September 16, 2024, though this date is subject to confirmation.