Another company from Kerala is entering the stock market. Ernakulam Kaladi Mathur-based Tolins Tires is set to raise Rs 230 crore through an initial public offering (IPO). In the IPO held from 9th to 11th of this month, the share price (price band/price band) is 215 to 226 rupees. The face value of the share is Rs 5.

A minimum of 66 shares and then multiples thereof can be applied for. 50 percent of the IPO is reserved for Qualified Investors (QIBs). 15% for non-institutional investors (NII/NII). The remaining 35% is for retail investors. The shares may be made available in demat accounts on September 12 to those eligible from the IPO applicants. The stock is likely to be listed on BSE and NSE on September 16.

Presence in more than 40 countries

Tollins Tires is a company that mainly focuses on tire retreading activities. This is the process of improving worn out tires and making them good again. The company exports to about 40 countries like Middle East, East Africa, Kenya, Egypt, Jordan etc. The company has three factories. Two in Kaladi and one in UAE. The company manufactures tires for two-wheelers, three-wheelers, cars, small commercial vehicles and agricultural vehicles.

Dr. Kalamparampil Varki Tolin and Jerin Tolin are the promoters of the company. They hold 83.31% of the shares. 200 crores of new shares (fresh issue) in the IPO. 30 crore is an offer-for-sale (OFS) where existing shareholders sell certain shares. Dr. In Kalamparam, shares of Varki Toll and Gerin Toll worth Rs 15 crore each will be sold in the OFS.

Profits and Competitors

The proceeds from the IPO will be used to fully repay existing debt, use for capital requirements and invest in the subsidiary. Indag Rubber, Vamshi Rubber, TVS Srichakra, GRP Limited and LG Rubber Company are the competitors waiting for Tollins Tires in the stock market.

Tollins Tires is a company that has achieved a revenue of Rs 227.22 crore and a profit of Rs 26.01 crore in the financial year 2023-24. Revenue for 2022-23 was Rs 118.25 crore and profit was Rs 4.99 crore. Profit growth is more than five times. Profit ratio (margin) improved from 4.22 percent to 11.45 percent in the last financial year. Earnings before interest and taxes (EBITDA) rose nearly four-fold to Rs 46.4 crore from Rs 12.3 crore.