Tolins Tyres Limited

 About Tolins Tyres Limited  Incorporated in 2003, Tolins Tyres Limited manufactures tyres for light commercial, agricultural, and two/three-wheeler vehicles. It also manufactures tread rubber and ancillary products like bonding gum, vulcanizing solution, tyre flaps, and tubes.  It operates three manufacturing facilities, two of which are located in Kerala and one in UAE. Its business model is backward integrated with raw materials, design, process engineering, casting, and machining capabilities. As of 31 March 2024, it has a sales network of 8 depots and 3,737 dealers across the country.  It caters to three market segments: exports, domestic sales, and Original Equipment Manufacturers. Some of its customers include Marangoni GRP, Kerala Agro Machinery Corporation, Redlands Motors, and Tyre Grip. It also exports internationally to 40 countries in the Middle East, the ASEAN region, and Africa.  Between FY22 and FY24, it saw a CAGR rise of 26% in its revenue from operations and 245% in its profit. Moreover, the Indian tyre industry is expected to grow by 4-6% in FY25, mainly due to improved replacement demand, which could benefit the company.  And now, Tolins Tyres Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹230 crore, comprising fresh issue, aggregating to ₹200 crore, as well as an offer for sale, aggregating to ₹30 crore. The money raised from the fresh issue will be utilised to repay borrowings, invest in its subsidiary, augment long-term working capital requirements, and serve general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Tolins Tyres Limited IPO:     Company Name  Tolins Tyres Limited   Company Type  Private    Company Established On  2003   Tolins Tyres Limited IPO Opening Date  9th September 2024    Tolins Tyres Limited IPO Closing Date  11th September 2024   Tolins Tyres Limited IPO Allotment Status  12th September 2024    Credit of Shares to the Demat Account  13th September 2024   Tolins Tyres Limited IPO Listing Date  16th September 2024    Tolins Tyres Limited IPO Face Value  ₹5 per share   Tolins Tyres Limited IPO Lot Size  66 shares    Tolins Tyres Limited IPO Issue Size  Approx ₹230 crore   Tolins Tyres Limited IPO to be Listed on  BSE, NSE    Tolins Tyres Limited IPO Price band  ₹215 – ₹226 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Income  ₹ 113 crore  ₹ 118 crore  ₹ 227 crore    Net Profit  ₹ 0.63 crore  ₹ 4.99 crore  ₹ 26 crore              Here’s a quick look at Tolins Tyres Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Diversified product range, including 163 stock-keeping units (SKU) in the tyre category and 1,003 SKUs of tread rubber.  High-quality products, with a focus on fuel efficiency, water evasion, skid resistance, and versatility, as only 0.20% of its total sales accounted for product recall in FY24.  Long-standing relationships with several well-established Indian and global customers due to its ability to customise its products based on customer requirements.  Backward integration with raw materials, design, process engineering, machining capabilities, and mold production allows it greater control over processes, delivery timelines, pricing, and quality.  Strategically located manufacturing facilities allow it access to the city of Kochi in Kerala, seaports and airports in Kerala, and the UAE.  A dedicated R&D centre with 10 employees has developed 163 new designs and molds for the same as of FY24.  Track record of financial growth with EBITDA margins of 5%, 10% and 20% in FY22, FY23, and FY24, respectively.   Risks and threats   It operates in the tyre manufacturing industry, which is experiencing difficulties due to the limited suppliers of key raw materials such as natural rubber and carbon black.  Manufacturing facilities are concentrated in Kalady, Kerala, and Ras Al Khaimah, UAE, exposing the region to risks related to geographical concentration.  A significant portion of its revenue, 71% in FY24, is generated through dealers/ distributors, but it does not enter into contractual agreements with them.  Exposed to risks associated with its export business, such as currency exchange rate fluctuations and economic or geopolitical stability.  Experienced negative cash flows from operating and investing activities in FY24 due to working capital changes.  Faces competition from Apollo Tyres, Balakrishna Industries, Bridgestone, Ceat, JK Tyres, MRF, TVS Srichakra, Michelin, Bridgestone, Goodyear and Maxxi.  Has incurred significant indebtedness with total outstanding borrowings of ₹101 crore as of 23 August 2024.            Tolins Tyres Limited IPO details  | Tolins Tyres Limited IPO date  According to the offer document filed by the company with the SEBI, the Tolins Tyres IPO’s opening date – in other words, the Tolins Tyres IPO launch date – will be 9th September 2024. The Tolins Tyres IPO closing date is 11th September 2024. After this, investors will be updated about the allotment status on 12th September 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 13th September 2024. The Tolins Tyres IPO listing date is 16th September 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Tolins Tyres Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Tolins Tyres IPO price band has been set between ₹215 and ₹226 per share. Interested investors can choose a price within this band to apply for the IPO.  The Tolins Tyres IPO listing price will be determined on 16th September 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Tolins Tyres Limited IPO Lot size  The Tolins Tyres IPO details have been declared. The Tolins Tyres IPO lot size is set at 66 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Tolins Tyres IPO issue size is approx ₹230 crore.           How to pre-apply for the Tolins Tyres Limited IPO?  You can pre-apply for the Tolins Tyres Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Tolins Tyres Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Tolins Tyres Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Tolins Tyres Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Tolins Tyres Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Tolins Tyres Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Tolins Tyres Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Tolins Tyres Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Tolins Tyres Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Tolins Tyres Limited IPO  To apply for the Tolins Tyres Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Tolins Tyres Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Tolins Tyres Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.