Tolins Tyres Limited IPO

Apply 0
Avoid 0

Tolins Tyres Limited is a leading player in the tyre and tread rubber industry in India, with a diverse product range and a strong presence both domestically and internationally. Their company is unique in that they operate in both the manufacturing of new tyres and the production of tread rubber, serving a wide range of industries across 40 countries, including the Middle East, East Africa, and ASEAN regions.

Core Products and Services:

i. Tyres: They manufacture bias tyres for two-wheelers, three-wheelers, light commercial vehicles, and agricultural vehicles.
ii. Tread Rubber: They produce precured tread rubber, which is integral to their tyre retreading solutions.
iii. Ancillary Products: Their product portfolio also includes bonding gum, tyre flaps, vulcanizing solutions, and other accessories.

Market Reach:

They cater to three main market segments: exports, domestic sales, and Original Equipment Manufacturers (OEMs) such as Marangoni GRP, KAMCO, and Tyre Grip. Their products are distributed through a network of 8 depots and 3,737 dealers across India, as well as through international channels.

Manufacturing and Integration:

They operate three manufacturing facilities—two in Kerala, India, and one in Ras Al Khaimah, UAE—covering a total area of over 13 acres. Their facilities are strategically located near raw material sources and key infrastructure, giving them a competitive advantage in production and distribution. They are backward integrated, controlling raw material processing, design, and manufacturing, which allows them to ensure high quality, cost efficiency, and timely delivery. Their forward integration through a robust sales network enhances their market reach.

In summary, they are a well-established, innovative company in the tyre and tread rubber industry, with a strong focus on quality, customer satisfaction, and sustainable growth.

Objects of the Tolins Tyres Limited IPO:

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects: i. Repayment and/or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the Company; ii. Augmentation of long-term working capital requirements of the company; iii. 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; and iv. General corporate purposes. Total number of share issue :- i. Fresh issue is 8,849,558 shares, ii. offer for sale is 1,327,434 shares.
DRHP of Tolins Tyres Limited IPO
RHP of Tolins Tyres Limited IPO

Tolins Tyres Limited IPO Details:

Open Date: Sep 09 2024
Close Date: Sep 11 2024
Total Shares: 8,982,300
Face Value: ₹ 5 Per Equity Share
Issue Size: 203.00 Cr.
Lot Size: 66 Shares
Issue Price: ₹ 215 - 226 Per Equity Share
Listing At: NSE,BSE
Listing Date: Sep 16 2024

Promoters And Management:

Dr. Kalamparambil Varkey Tolin, aged 54, is the Chairman and Managing Director of the Company and one of its founding Promoters. He holds a Bachelor of Arts from Mahatma Gandhi University, Kerala, and a doctorate in production management from Colombo University, Sri Lanka. With around 32 years of experience in the tyre and treads industry, he has been leading the Company since its inception in 2003. Dr. Tolin oversees the company's strategic growth and expansion and has received the McMillan Woods Global Award and the Master Class International Export Award. Sankarakrishnan Ramalingam, aged 63, is the Whole-time Director of the Company, having joined on September 4, 2023. He holds a Bachelor's degree in Science from the University of Bombay and a diploma in industrial chemistry from the British Institutes Bombay. With around 40 years of experience in banking and merchant banking, he previously worked with Syndicate Bank and later became an investment banker, helping companies raise funds from equity markets. He oversees corporate governance, compliance, and overall management of the Company. Jerin Tolin, aged 46, is a Non-Executive Non-Independent Director of the Company, appointed on September 4, 2023. A Promoter of the Company since 2004, she holds a Bachelor of Science in Mathematics from Sunrise University, Rajasthan, and a Bachelor of Education in Mathematics from Viswa Bharatiya Vidya Parishad. She also runs a proprietorship, Rubber Solutions, which manufactures vulcanizing solutions, and has been actively contributing to the field of education since 2020.

Financials of Tolins Tyres Limited IPO:

Particulars ( In Million )
2022
2023
2024
Revenue from Operations 1,134 1,182 2,272
Other Income 10 14 15
Total Revenue 1,144 1,197 2,287
Cost of material Consumed 992 1,008 1,759
Changes in inventories -43 -62 -118
Employees Benefit Expenses 37 33 69
Other Expenses 87 81 98
EBITDA 71 137 478
OPM (%) 6.22% 11.44% 20.92%
Depreciation & Amortisation 20 16 34
EBIT 52 121 445
Finance Cost 43 51 116
PBT 9 70 329
Tax 2 20 69
PAT 6 50 260
NPM (%) 0.55% 4.17% 11.37%
No.of Shares 39.50 39.50 39.50
EPS 0.15 1.26 6.58

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Tolins Tyres Limited 227 26 6.58 34.3 226 893
Indag Rubber Limited 251 16 6.15 50.6 228 598
Vamshi Rubber Limited 77 0.6 1.45 31.3 49 21
TVS Srichakra Limited 2,926 108 140.98 34.0 4,390 3,363
GRP Ltd 461 23 42.72 67.9 3,420 1,824
Elgi Rubber Company Limited 386 12 2.33 146.0 110 552
* All the data is as per FY24.

Recommendation on Tolins Tyres Limited IPO:

To be updated shortly.

Lead Manager of Tolins Tyres Limited IPO:

  1. Saffron Capital Advisors Private Limited

Registrar of Tolins Tyres Limited IPO:

  1. Cameo Corporate Services Limited

Company Address:

Tolins Tyres Limited No. 1/47, M C Road Kalady, Ernakulam Aluva - 683574 Phone: +917259287215 Email: cs@tolins.com Website: https://www.tolinstyres.com/

Discussion on Tolins Tyres Limited IPO:

Leave a Reply