Tolins Tires IPO Revved Up for Strong Market Debut with 13% Premium in Grey Market!

After a well-received three-day auction, Tolins Tires IPO is set to make its debut on the Indian stock market on September 16. The IPO allocation process was finalized on Thursday, September 11, marking the end of a highly successful public issue for the company.

Strong Grey Market Premium Ahead of Listing

Ahead of its official listing, shares of Tolins Tires are commanding a premium of ₹30 in the gray market, as per data from investorgain. This translates to an estimated listing price of ₹256 per share, reflecting a 13.27% increase over the IPO price of ₹226.

While the lowest recorded gray market premium (GMP) for Tolins Tires has been ₹0, the highest has reached ₹39. Based on these gray market trends, the stock is anticipated to deliver positive returns for investors. However, it is crucial to note that GMPs are merely speculative indicators of market sentiment in the unlisted market and are subject to change.

Explanation of Grey Market Premium

The term ‘Grey Market Premium’ (GMP) represents the extra amount investors are willing to pay over the issue price of a company’s shares in the unlisted market. Although the GMP serves as a market indicator of a company’s perceived value, it should not be taken as a definitive measure of future performance. These premiums can fluctuate based on market demand and sentiment.

Tolins Tires IPO Subscription Status

Tolins Tires’ IPO saw overwhelming demand, being oversubscribed 23.89 times by the close of its final auction day on Wednesday. A total of 17,89,26,528 applications were submitted for the 74,88,372 shares available, demonstrating strong interest across all investor segments.

Retail investors subscribed at a rate of 21.52 times, non-institutional investors (NIIs) at 27.41 times, and Qualified Institutional Buyers (QIBs) at 25.42 times, indicating robust demand across the board.

Tolins Tires IPO Details

Tolins Tires aims to raise approximately ₹230 crore through this IPO, with shares set to list on both the BSE and NSE. The price range for the offering was set between ₹215 and ₹226 per share. Prior to the public offering, the company secured ₹69 crore from anchor investors, who were allocated 30.53 lakh shares at the upper limit of ₹226 per share.

Promoter Share Sale in Offer for Sale (OFS)

The Kalamparamil promoters, Varkey Tolin and Jerin Tolin, will each sell shares worth ₹15 crore through the Offer for Sale (OFS) component of the Tolins Tires IPO. Together, the two promoters held an 83.31% stake in the company before the IPO.

Key Managers for Tolins Tires IPO

Saffron Capital Advisors Private Limited has been appointed as the lead book-running manager for this public offering. Cameo Corporate Services Limited will handle the IPO’s registrar duties, ensuring the smooth allocation of shares to investors.

Conclusion: Market Outlook for Tolins Tires

With strong oversubscription numbers and positive gray market trends, Tolins Tires is expected to make a notable debut on the Indian stock exchange, potentially delivering solid returns for its investors. However, as with all market listings, caution is advised, and investors should consider all available data before making decision.