Ahead of the public issue, Tolins Tyres has secured Rs 69 crore from anchor investors. Notable anchor investors include BofA Securities Europe SA, NAV Capital VCC, Chhatisgarh Investments, Ashika Global Securities, Moneywise Financial Services
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 supporting 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.
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The company also makes ancillary products like bonding gum, vulcanizing solution, tyre flaps and tubes.Tolins Tyres’ competitive strengths lie in its operational efficiency, ensuring timely delivery, stringent quality control, and product innovations.The company has delivered robust growth in Revenue, EBITDA and PAT at a CAGR of 42%, 176% and 542% from FY22 to FY24, driven by capacity expansion and vertical integration.
Its revenue from operations in the fiscal year 2024 came in at Rs 227 crore and profit was at Rs 26 crore. 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 rest 76% of the total sales.
Saffron Capital Advisor was the sole book running lead manager to the issue, while cameo corporate services was the registrar.