Tolins Tires IPO

 

Tolins Tires, a prominent player in the tire and treads industry based in Kerala, is gearing up for its Initial Public Offering (IPO).

The company has taken a significant step in this direction by filing draft papers with the market regulator, SEBI. Tolins Tires aims to mobilize an impressive sum of Rs 230 crore through this IPO, which will involve both a fresh issue and an offer for sale (OFS).

In the detailed breakdown, the company plans to issue fresh equity shares amounting to Rs 200 crore, while an additional Rs 30 crore will be raised through the sale of existing shares via OFS.

The primary promoters, Kalamparambil Varkey Tollin and Jerin Tollin, intend to offload shares worth Rs 15 crore each through the OFS.

Currently, they collectively hold an 83.31% stake in the company. There is also a possibility of a pre-IPO placement round to raise an additional ₹25 crore, which could potentially alter the size of the IPO.

The utilization of the IPO proceeds reveals a strategic allocation of funds. Out of the Rs 200 crore, Rs 75 crore is earmarked for addressing long-term working capital needs.

Another significant portion, Rs 62.55 crore, will be allocated to the repayment of loans.

The company also plans to invest ₹24.36 crore in its subsidiary, Tolin Rubbers Pvt Ltd, with a dual objective of reducing debt and fulfilling working capital requirements.

Tolins Tires’ international footprint is noteworthy, as it exports its products to 40 countries, including key markets in the Middle East, East Africa, Jordan, Kenya, and Egypt.

This global presence signifies the company’s strong market position and potential for further expansion.

Saffron Capital Advisors Private Limited has been appointed as the sole lead merchant banker for the public issue, indicating a strategic partnership in navigating the complexities of the IPO process.

As Tolins Tires sets the stage for its IPO, the disclosed details and strategic fund allocation underscore the company’s commitment to fortifying its financial structure, pursuing growth opportunities, and maintaining a competitive edge in the tire and treads industry.

Investors and industry observers will keenly watch the developments surrounding Tolins Tires’ IPO, anticipating its impact on the company’s trajectory in the market.

Source:

http://tiny.cc/oh4zwz

https://www.sharemarket.org.in/tolins-tyres-ipo-company-files-draft-papers-for-rs-230-crore-ipo/