Tolins Tires IPO Set for Stock Market Debut on September 16, What GMP signals in advance of the list

Tolins Tires IPO is set to make their debut on the Indian stock market on Monday, September 16, with an expected gray market premium (GMP) of ₹30, according to ipogmp.org

Tolins Tires Stock Price Estimate

Considering the upper end of the IPO price band and the current GMP, the Tolins Tires stock price is estimated to be ₹256 per share. This reflects a 13.2% premium over the IPO price of ₹226, indicating strong investor demand in the gray market, where buyers are willing to pay more than the issue price.

Tolins Tires IPO Details

The Tolins Tires IPO, valued at ₹230 crore, was open for subscription from September 9 to September 11, 2024, with a price band set between ₹215 and ₹226 per share. The shares will be listed on both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).

Tolins Tires IPO Structure and Fundraising

The issue consists of a fresh issue of 0.88 crore shares, raising ₹200 crore, and an offer for sale (OFS) of 0.13 crore shares, worth ₹30 crore. The IPO attracted significant investor interest, with a total subscription rate of 25 times.

Investor Response to Tolins Tires IPO

Non-institutional investors (NIIs) were highly active, subscribing to the issue 28 times, while qualified institutional buyers (QIBs) subscribed 26 times. Retail investors also showed strong interest, with a subscription rate of 22.45 times, as reported by Chittorgarh.com.

Use of IPO Proceeds

Tolins Tires plans to use the net proceeds from the fresh issue for full or partial repayment of certain outstanding loans, including associated foreclosure fees. A portion of the funds will be allocated toward long-term working capital needs. Additionally, the company will invest in its subsidiary, Tolin Rubbers Private Limited, to facilitate the repayment or prepayment of both short- and long-term loans, while the remaining funds will be used for general corporate purposes.

About Tolins Tires

Tolins Tires is a leading player in the tire and tire solutions industry with a nationwide presence and a diverse product range. The company operates in both verticals of tire manufacturing—producing new tires and retreading tires. Tolins exports its products to 40 countries, including markets in the Middle East, East Africa, Jordan, Kenya, and Egypt.

The company primarily produces bias tires for a wide range of vehicles, including light commercial vehicles, agricultural vehicles, and two- and three-wheelers. Additionally, Tolins manufactures auxiliary products such as bond gum, vulcanizing solutions, tire flaps, and tubes.