Wed Sep 11 06:01:32 UTC 2024: ## Tolins Tyres IPO Over-Subscribed, Sees Strong Interest from Retail Investors

**Kochi, India – September 11, 2024:** Tolins Tyres Ltd., a leading Kerala-based tyre and treads manufacturer, saw its initial public offering (IPO) receive a strong response, with subscriptions exceeding 6.4 times the number of shares offered by the end of the bidding period on Wednesday.

The IPO, which aimed to raise Rs 230 crore, was priced between Rs 215 and Rs 226 per share. Retail individual investors (RIIs) showed strong enthusiasm, subscribing 10.03 times their allocated portion, while non-institutional investors participated with 5.82 times subscription. However, qualified institutional buyers (QIBs) showed less interest, subscribing only 0.48 times.

The strong retail investor response highlights the confidence in Tolins Tyres’ future prospects. The company’s focus on the export market, currently reaching 40 countries, has contributed to its strong growth.

The IPO proceeds will be used for various strategic initiatives, including debt repayment, working capital enhancement, and investment in the subsidiary, Tolin Rubbers.

**Grey Market Premium Indicates High Demand**

The IPO’s success is further reflected in a substantial grey market premium (GMP) of Rs 39, indicating investors’ willingness to pay significantly above the issue price. This translates to a potential listing gain of 17.26% for the IPO.

**Analysts Remain Cautious**

While the strong response indicates investor confidence, analysts have cautioned investors to approach the IPO with a “high-risk” appetite.

SMC Global, in its IPO note, highlighted the challenges faced by the tyre industry, primarily due to limited suppliers of key raw materials like natural rubber and carbon black.

**Anchor Investment Shows Institutional Confidence**

Ahead of the public issue, Tolins Tyres successfully secured Rs 69 crore from anchor investors, including BofA Securities Europe SA, NAV Capital VCC, and Chhatisgarh Investments. This signifies institutional confidence in the company’s growth potential.

The share allotment is expected to be finalized on September 12, with the company’s shares slated to be listed on both BSE and NSE on September 16.

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