Tolins Tyres Limited IPO And Its GMP

Tolins Tyres Limited is a leading player in the Tyre & Treads industry with an India presence with a diverse product range. They are one of the companies that are present in both verticals – manufacturing of new tyres and tread rubber. The Company has established itself as a major tyre retreading solutions provider across India and exported to 40 foreign countries, including the Middle East, East Africa, Jordan, Kenya and Egypt.

The major products of the Company include two-wheelers, three-wheelers, light commercial vehicles and agricultural tyres, procured tread rubber and other accessories including bonding gum, tyre flap, vulcanizing solutions, etc.

Book Running Lead Manager: 

• ● Saffron Capital Advisors Private Limited

Registrar:

•  ● Cameo Corporate Services Limited

Tolins Tyres Limited IPO Reservation

Company & Financials

Incorporated in 2003, Tolins Tyres Limited is a tyre manufacturing company. 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's business can be divided into two verticals:

• 1. Tyre manufacturing.
• 2. Tread Rubber manufacturing.


• As of March 31, 2024, the company's products include 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, Rope Rubber & Others. The company manufactures a range of products, including two-wheelers, three-wheelers, light commercial vehicles, agricultural tyres, tread rubber and various accessories such as bonding gum, tyre flaps and vulcanizing solutions. 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. The company has 163 stock-keeping units (SKUs) in the tyre category and 1,003 SKUs in the tread rubber category.

Objectives of Tolins Tyres IPO

The Company proposes to utilize the Net Proceeds from the Fresh Issue towards funding the following objectives:

• 1. Repayment and/or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the Company.
• 2. Augmentation of long-term working capital requirements of the company.
• 3. 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.
• 4. General corporate purposes.

Tolins Tyres IPO Review

The company is in the business of tyres and tread rubber manufacturing and marketing along with a supply of related products. It marked a setback for FY23 following market conditions and volatile crude oil and natural rubber prices. It marked improved performance for FY24 following consolidation of activities with added capacities. Based on FY24 earnings, the issue relatively appears fully priced. Investors may park funds for the medium to long term.