The offer comprises a fresh equity sale of Rs 200 crore and an offer for sale (OFS) of Rs 30 crore. Under the OFS, promoters Kalamparambil Varkey Tolin and Jerin Tolin will offload part stakes in the company.
The price band for the issue will be announced soon.
Of the Rs 200 crore IPO proceeds, Rs 75 crore will be used to augment long-term working capital requirements, Rs 62 crore for repayment of debut. Further, about Rs 24 crore will be used for investment in the company’s subsidiary Tolin Rubbers for repaying its debt and support its working capital requirements.
Tolins Tyres is present in both verticals – manufacturing of new tyres and tread rubber. It is primarily engaged in manufacturing of bias tyres for vehicles (including LCV, agricultural and two/three-wheeler vehicles) and precured tread rubber.The company also makes ancillary products like bonding gum, vulcanising solution, tyre flaps and tubes.Tolins Tyres’ competitive strengths lie in its operational efficiency, ensuring timely delivery, stringent quality control, and
product innovations.
“We believe in a customer-centric business model and endeavour to supply customised products to meet our customer’s demands,” the company said.
For FY24, the company generated revenues of Rs 51 crore from sales of new tyres, which accounted for 24% of the total sales. Meanwhile, revenue from tread rubber made up for the remaining 76% of the total sales.
Over the last two years, the company’s profit after tax (PAT) has grown at a CAGR of 541.98% between FY22 (on a standalone basis) and FY24 (on a consolidated basis).
The revenue from operations in the fiscal year 2024 came in at Rs 227 crore and profit was at Rs 26 crore.
Saffron Capital Advisor is acting as the sole book-running lead manager to the issue, while cameo corporate services is the registrar.
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