Tolins Tyres
Book Building issueMainboardNSE₹230 Cr issue
+0.44%
Listing gain over issue price
Issue size
₹230 Cr
1 lot at cut-off
₹14,916
Lot size
66shares
Open
09 Sep 2024
Close
11 Sep 2024
Allotment
12 Sep 2024
Listing
16 Sep 2024
Listing performance
Issue price
₹226
Listed at
₹227
Listing-day close
₹239.40
Latest price
₹81.77
Close on 23 Oct 2026
Listing gain
+0.44%
Return since issue
-63.82%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 09 Sep 2024 – 11 Sep 2024
- Listing date
- 16 Sep 2024
- Face value
- ₹5 per share
- Issue price
- ₹226 per share
- Lot size
- 66 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹230 Cr
- Market cap at offer price
- ₹893 Cr
- Promoter holding
- 92.64% → 68.53% pre-issue → post-issue
- ISIN
- INE0RWQ01014
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Saffron Capital Advisors Pvt.Ltd.
- Registered office
- No.1/47, M C Road, Kalady, Ernakulam, Aluva, Kerala
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 30,53,097 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 66 shares per lot, in multiples, at ₹226
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 66 | ₹14,916 |
| Retail (max) | 13 | 858 | ₹1,93,908 |
| S-HNI (min) | 14 | 924 | ₹2,08,824 |
| S-HNI (max) | 67 | 4,422 | ₹9,99,372 |
| B-HNI (min) | 68 | 4,488 | ₹10,14,288 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
30,53,097
Anchor portion
₹69 Cr
at ₹226 per share
Valuation and performance
Valuation at offer price
₹226 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.48 | 6.58 |
| P/E (×) | 26.65 | 34.35 |
| Price to book (×) | 6.14 | — |
| Market cap | — | ₹893 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 25.87%
- ROCE
- 36.08%
- Debt / equity
- 0.78
- PAT margin
- 11.45%
- NAV per share
- ₹36.80
- Price to book
- 6.14
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Tolins Tyres
Tolins Tyres Limited, incorporated in 2003 and converted to a public company in 2024, is a manufacturer of bias tyres for light commercial vehicles, agricultural vehicles, and two/three-wheeler vehicles, as well as precured tread rubber. The company also manufactures ancillary products including bonding gum, vulcanizing solution, tyre flaps, and tubes. It operates three manufacturing facilities: two in Kalady, Kerala (its own facility and that of its subsidiary Tolin Rubbers Private Limited) and one in Ras Al Khaimah, UAE (Tolins Tyres LLC). The company generates revenue primarily from the sale of tread rubber (75.74% of revenue in FY2024) and tyres (24.26%), serving both original equipment manufacturers and the replacement market through dealers, distributors, depot channels, and direct exports.
Company Analysis
from RHPTolins Tyres Limited manufactures bias tyres for vehicles and precured tread rubber, operating in the automotive tyre and rubber products industries.
Tolins Tyres Limited, incorporated in 2003 and converted to a public company in 2024, is a manufacturer of bias tyres for light commercial vehicles, agricultural vehicles, and two/three-wheeler vehicles, as well as precured tread rubber. The company also manufactures ancillary products including bonding gum, vulcanizing solution, tyre flaps, and tubes. It operates three manufacturing facilities: two in Kalady, Kerala (its own facility and that of its subsidiary Tolin Rubbers Private Limited) and one in Ras Al Khaimah, UAE (Tolins Tyres LLC). The company generates revenue primarily from the sale of tread rubber (75.74% of revenue in FY2024) and tyres (24.26%), serving both original equipment manufacturers and the replacement market through dealers, distributors, depot channels, and direct exports.
Tyre manufacturingRubber productsPrecured tread rubberAutomotive components
Objects of the Issue
- Repayment and / or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by our Company ₹699.69 million p.31
- Augmentation of long-term working capital requirements of our Company ₹750.00 million p.31
- Investment in our 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 ₹231.54 million p.31
- General corporate purposes p.31
- Repayment and / or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by our Company p.129
- Augmentation of long-term working capital requirements of our Company p.129
- Investment in our 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 p.129
- General Corporate Purposes p.129
- Repayment and/or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by our Company ₹699.69 million p.133
- Augmentation of long-term working capital requirements of our Company ₹750.00 million p.133
- Investment in wholly-owned subsidiary, Tolin Rubbers Private Limited to repay and/or prepay certain of its short-term and long-term borrowings and augmentation of its working capital requirements ₹231.54 million (of which ₹151.54 million for repayment and ₹80.00 million for working capital) p.133
- General corporate purposes [●] p.133
- Funding capex for new plant and expansion of capacity ₹2,000 million p.464
Issue Structure
- Total Issue
- Up to ₹2,300 million
- Fresh Issue
- Up to ₹2,000 million (Fresh Issue of up to [●] Equity Shares of face value of ₹5 each)
- Offer for Sale
- Up to ₹300 million (Up to [●] Equity Shares of face value of ₹5 each, consisting of Up to ₹150 million by Dr. Kalamparambil Varkey Tolin and Up to ₹150 million by Jerin Tolin)
- Price Band
- [●] per Equity Share
- Lot Size
- [●] Equity Shares of face value of ₹5 each and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹5 each
Business Model
The company manufactures and sells bias tyres and precured tread rubber products. Revenue is generated through multiple sales channels: dealers/distributors (71.81% of FY2024 revenue), depots (11.70%), van sales (5.10%), OEM customers (5.06%), exports (5.38%), and state transport corporations (0.95%). The company also has a subsidiary, Tolin Rubbers Private Limited, that supplies rubber compounds to the parent company, and a foreign subsidiary in UAE.
Business Segments
Manufacturing of bias tyres for vehicles including LCV, agricultural and two/three-wheeler vehicles, including tubes and flaps
Manufacturing of precured tread rubber, conventional tread rubber, bonding gum, vulcanizing solutions and other ancillary products
Manufacturing of bias tyres for light commercial vehicles, small commercial vehicles, two and three-wheelers, farm vehicles, ORVs and industrial vehicles
Manufacturing of pre-cured tread rubber (PCTR), conventional tread rubber, bonding gum, vulcanizing solutions, flaps and other ancillary products including rope rubber for retreading applications
Manufactures and sells tyres for two-wheelers, three-wheelers, light commercial vehicles, and agricultural applications
Wholly-owned subsidiary manufacturing rubber compound (precured tread rubber) products
Manufacturing of bias tyres for light commercial vehicles, agricultural vehicles, two-wheeler and three-wheeler vehicles, including tyre tubes and flaps
Manufacturing of precured tread rubber, conventional tread rubber, bonding gum, vulcanizing solutions, rope rubber and other ancillary products for the tyre retreading industry
Manufacture and sale of rubber tyres for various vehicles
Manufacture and sale of tread rubber products
Manufacture and sale of bias tyres for light commercial vehicles, agricultural vehicles, and two/three-wheeler vehicles
Manufacture and sale of precured tread rubber, conventional tread rubber, bonding gum, vulcanizing solutions and other ancillary products including rope rubber
Manufacturing and sale of tyres and tread rubber for the automotive industry, including OEM and replacement market sales, and exports
SWOT Analysis
Strengths
- • Diversified product portfolio across tyres and tread rubber(p.29)
- • Established distribution network with significant dealer presence(p.48)
- • Strong financial profitability with improving returns(p.31)
- • Subsidiary acquisitions expanding manufacturing and geographic footprint(p.30)
- • Growth in tyres revenue segment(p.29)
- • Pre-emptive surveillance measures can enhance market integrity and investor protection post-listing(p.99)
- • Diversified product portfolio across tyre and tread rubber categories(p.151)
- • Multiple quality certifications and international product standards compliance(p.151)
- • Extensive dealer network and depot infrastructure(p.151)
- • Backward integration and in-house manufacturing capabilities(p.151)
- • Significant improvement in profitability metrics year-over-year(p.157)
- • Experienced management with three decades of industry expertise(p.151)
- • Diversified product portfolio with 163 tyre SKUs and 1,003 tread rubber SKUs(p.219)
- • Integrated backward integration with in-house design, process engineering, casting and machining capabilities(p.217)
- • Established relationships with major OEMs including Marangoni GRP, KAMCO, Redlands Motors, and Tyre Grip(p.220)
- • Strategic locational advantage near raw material sources, ports, and airports in Kalady, Kerala(p.217)
- • Strong profitability with PAT CAGR of 541.98% between Fiscal 2022 and 2024(p.216)
- • High EBITDA margin of 20.41% and PAT margin of 11.45% in Fiscal 2024(p.218)
- • Low product recall rate with only 0.20% of sales in Fiscal 2024(p.219)
- • Extensive distribution network with 8 depots and 3,737 dealers across India as of March 31, 2024(p.217)
- • Vertically integrated manufacturing with 8.99 acres of owned factory land in Kerala(p.248)
- • Broad product portfolio across multiple tyre segments (LCV, light truck, 2/3-wheeler, agricultural)(p.257)
- • Established domestic distribution network with 8 depots and 3,737 dealers across India(p.243)
- • International presence with exports to 18 countries including Middle East, Africa, Europe and North America(p.243)
- • Multiple international quality certifications (SONCAP, US DOT, E32, BIS)(p.258)
- • Strong safety record with no accidents in manufacturing facilities for three consecutive fiscal years(p.244)
- • Significant revenue growth from operations(p.307)
- • Profitable operations with positive PAT trajectory(p.307)
- • Diversified product portfolio across tyres and tread rubber(p.365)
- • Improved equity base through capital raising(p.306)
- • Geographic diversification with international revenue(p.365)
- • Established presence in both tyre manufacturing and tread rubber production verticals(p.388)
- • Strong international export network covering 40 countries across Middle East, Africa, and ASEAN(p.388)
- • Backward and forward integration providing control over supply chain and distribution(p.389)
- • Rapid profitability growth with PAT CAGR of 541.98% between FY2022 and FY2024(p.388)
- • Significant improvement in debt-to-equity ratio from 4.51x to 0.78x demonstrating deleveraging(p.390)
- • Widespread dealer and depot network across India with 3,737 dealers and 8 depots(p.389)
Weaknesses
- • Heavy dependence on top suppliers, especially the largest supplier(p.43)
- • Lack of long-term contracts with suppliers exposes to raw material volatility(p.42)
- • Geographic concentration of manufacturing facilities creates operational risk(p.46)
- • Significant dependence on OEM customers for agricultural tyres(p.44)
- • Negative operating cash flow in recent period(p.49)
- • No long-term commitment from distributors and dealers(p.48)
- • Severe under-utilization of manufacturing capacity across all product lines(p.52)
- • High dependence on subsidiary TRPL for raw material sourcing(p.59)
- • Geographic revenue concentration in Kerala creates operational vulnerability(p.55)
- • Significant indebtedness with restrictive covenants limiting operational flexibility(p.55)
- • Dependence on contract labor with potential absorption liability(p.56)
- • Trademark ownership risk - trademarks registered under Promoter's name(p.54)
- • Untraceable historical corporate records filed before 2007 create regulatory exposure(p.58)
- • High financial leverage and debt burden relative to equity(p.157)
- • Recent acquisition integration risks with newly acquired subsidiaries(p.161)
- • Dependence on related parties for raw material supply(p.142)
- • Jose Thomas shareholder association with wilfully defaulted entity(p.128)
- • Short-term loan availed less than one year prior to DRHP filing(p.74)
- • Low capacity utilization at 33.40% average across product lines(p.222)
- • Tyre segment represents only 24.26% of revenue, with heavy dependence on tread rubber at 75.74%(p.219)
- • Limited R&D spending at 0.10% of revenue in Fiscal 2024, significantly lower than peer companies(p.221)
- • Very small market share of 0.06% in tyres and 2.73% in retread tyres within India(p.219)
- • No long-term contracts with suppliers and engagement only through purchase orders(p.230)
- • High debt-to-equity ratio of 0.78 in Fiscal 2024, indicating significant leverage(p.218)
- • Export revenue contributes only 5.38% of total revenue in Fiscal 2024, indicating limited international presence(p.223)
- • High supplier concentration with top 3 suppliers accounting for 60% of raw material purchases(p.240)
- • Single largest supplier (Supplier 1) accounts for 29.07% of total purchases (down from 65.02% prior year)(p.241)
- • Heavy customer concentration with top 3 customers accounting for 33.77% of revenue in FY2024(p.243)
- • No long-term purchase agreements with raw material suppliers, creating supply uncertainty(p.240)
- • No long-term arrangements with freight forwarders, dependent on ad-hoc arrangements(p.241)
- • Trademarks registered in promoter's personal name rather than company name, creating dependency risk(p.245)
- • High leverage with elevated debt levels(p.348)
- • Significant increase in working capital requirements(p.339)
- • Rising finance costs(p.359)
- • Capital work-in-progress concentration(p.337)
- • Goodwill impairment risk from recent acquisition(p.338)
- • Dependence on customer concentration(p.341)
- • High dependence on related party transactions with significant purchases from subsidiaries and common director entities(p.374)
- • Concentration of manufacturing facilities in Kerala with strategic dependency on single location(p.389)
- • Limited permanent workforce (40 permanent employees out of 201 total) creating operational dependency on contract labour(p.395)
- • Negative operating cash flow of ₹35.90 million in FY2024 despite strong profit(p.421)
- • Significant increase in finance costs by 129.22% in FY2024 indicating rising debt servicing burden(p.418)
Opportunities
- • Expanding market for replacement tyres driven by vehicle growth(p.29)
- • Growing exports market for Indian tyres(p.29)
- • Expansion potential in tread rubber sector(p.29)
- • Strategy to expand product portfolio in premium tyres segment(p.51)
- • Listing benefits for brand visibility and market expansion(p.30)
- • Expansion in retreading market with growing environmental and cost benefits(p.74)
- • Capacity expansion potential to serve radialisation trend in HCV and LCV segments(p.82)
- • Market consolidation opportunity in unorganized tread rubber sector(p.85)
- • Export market expansion opportunity with presence in 18 countries(p.86)
- • Expansion of working capital and production capacity with IPO proceeds(p.140)
- • Significant reduction in debt service costs through loan prepayment(p.135)
- • Enhanced market visibility and brand building through public listing(p.133)
- • Vertical integration benefits from subsidiary operations(p.147)
- • R&D and product innovation capabilities to develop differentiated products(p.151)
- • Indian tyre industry projected to grow 4-6% in fiscal 2025 with replacement segment growing 5-7%(p.207)
- • Two-wheeler tyre demand projected to grow 3-4% CAGR to reach 120-140 million units by fiscal 2029(p.208)
- • Three-wheeler segment expected to grow 5-7% CAGR reaching 960-1020 units by fiscal 2029(p.189)
- • Passenger vehicle tyre demand expected to grow 6-8% CAGR to reach 80-95 million units by fiscal 2029(p.210)
- • Commercial vehicle tyre demand projected to grow 7-9% CAGR to reach 34-45 million units by fiscal 2029(p.211)
- • Domestic retreading industry valued at Rs 6,300-7,000 crore in fiscal 2024, expected to grow to Rs 8,700-9,600 crore by fiscal 2029 at 6-8% CAGR(p.215)
- • Global supply chain decoupling favoring India as alternative manufacturing hub(p.174)
- • Make in India initiative promoting manufacturing in India with FDI inflows almost doubling to $83.6 billion in fiscal 2022(p.175)
- • PLI scheme allocating Rs 751.4 billion for automobile sector including 570.4 billion for auto components(p.176)
- • Capacity expansion to 5,000 tyres/day completed in 2023, enabling higher production volumes(p.258)
- • Growing export market presence in Middle East and Africa (90.91% of FY2024 export revenue)(p.244)
- • Recent acquisitions of wholly-owned subsidiaries expanding manufacturing footprint (TRPL and TTLLC)(p.258)
- • Significant raw material purchased from domestic sources (99.40% in FY2024), supporting import substitution(p.241)
- • Expansion through business combinations(p.338)
- • Growing international market presence(p.365)
- • Capacity expansion under development(p.337)
- • Product mix enhancement towards higher-margin tyres(p.365)
- • Projected GDP growth of 6.8% for India expected between FY2025-FY2029 supporting domestic demand(p.391)
- • Expected tyre export growth of 7-9% by FY2029 driven by two-wheeler segment and global supply chain diversification(p.392)
- • Global shift from China to India for manufacturing and supply chain diversification creating export opportunity(p.392)
- • Strategic positioning to benefit from government capex push and infrastructure development(p.393)
- • Scope for new product development and expansion into advanced technology platforms(p.394)
Threats
- • Intense competition from major domestic and multinational corporations(p.51)
- • Competition from cheaper Chinese tyres in TBR segment(p.51)
- • Raw material price volatility and supply risks from limited suppliers(p.43)
- • Stringent and evolving environmental regulations compliance requirements(p.50)
- • International sales risks from currency fluctuations and political uncertainty(p.49)
- • Potential disruption from expansion of radial tyres reducing bias tyre demand(p.51)
- • Dependence on automotive sector growth and OEM production levels(p.44)
- • Risks from disruption of manufacturing facilities and labor force(p.46)
- • Intense competition from organized and unorganized players on pricing(p.85)
- • Cyclical nature of automotive industry affecting demand(p.76)
- • Import tariff and trade policy risks on exports(p.77)
- • Foreign exchange volatility impacting export competitiveness(p.89)
- • Raw material price volatility and supply chain disruptions(p.68)
- • Regulatory changes in labor and taxation laws increasing compliance costs(p.93)
- • Power and utility supply disruptions affecting manufacturing operations(p.83)
- • Potential trading restrictions from pre-emptive surveillance measures post-listing(p.99)
- • Share dilution risk from future issuances and selling shareholder disposals(p.99)
- • Market volatility and low liquidity risks for newly listed company(p.99)
- • Intense competition in organized and unorganized tyre sector(p.140)
- • Raw material price volatility and supply chain risks(p.140)
- • Limited suppliers for key raw materials like natural rubber and carbon black with price volatility(p.38)
- • Commercial vehicle sales expected to decline marginally by (2)-0% in fiscal 2025, impacting tyre demand(p.207)
- • Medium and heavy commercial vehicle sales projected to decline by (4)-2% in fiscal 2025(p.207)
- • India's GDP growth expected to moderate to 6.8% in fiscal 2025 from 7.6% in fiscal 2024(p.173)
- • Slowdown in tyre exports expected due to weak demand from advanced economies in Europe and America(p.207)
- • Intense competition from top four two-wheeler OEMs controlling 83% market share, with contribution declining from 89% in fiscal 2019(p.182)
- • Unorganized retreading sector offering competitive pricing for tread rubber(p.215)
- • Import duty reduction under FTAs potentially increasing competition from imports(p.203)
- • Monsoon dependency affecting agricultural and rural tyre demand(p.186)
- • Raw material costs represent 77.42% of revenue and fluctuate with petroleum prices, creating margin pressure(p.240)
- • Tyre industry is highly competitive with fragmented market including organized and unorganized players(p.247)
- • Export revenues declining sharply (from 13.97% in FY2022 to 5.38% in FY2024 on standalone basis)(p.243)
- • Exposure to regulatory compliance requirements in multiple jurisdictions (environmental, labour, safety)(p.244)
- • Dependence on Kerala state electricity board for power supply with backup arrangements(p.241)
- • Rising raw material and input costs(p.359)
- • Foreign exchange exposure on imports and receivables(p.361)
- • Interest rate risk on floating rate borrowings(p.348)
- • Commodity price volatility in tyre industry(p.365)
- • Liquidity risk from working capital pressure(p.308)
- • Volatility in raw material prices particularly natural rubber, synthetic rubber, and carbon black affecting margins(p.394)
- • Global economic slowdown and weak external demand impacting tyre export growth(p.392)
- • Risk of supply shortages in critical raw materials with long lead times affecting production schedules(p.394)
- • Expected decline in tyre exports from advanced economies in Europe and America(p.392)
- • Dependence on limited number of suppliers for critical materials creating procurement risk(p.394)
- • Risk of loss of key customers or reduction in business volume affecting cash flows(p.391)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Dr. Kalamparambil Varkey Tolin | Promoter/Promoter Selling Shareholder | 44.01% | — |
| Jerin Tolin | Promoter/Promoter Selling Shareholder | 39.30% | — |
| Dr. Kalamparambil Varkey Tolin | Promoter | — | — |
| Jerin Tolin | Promoter | — | — |
| Jose Thomas | Promoter Group | — | — |
| Annie Varkey | Promoter Group | — | — |
| Dr. Kalamparambil Varkey Tolin | Promoter Selling Shareholder | 44.01% | — |
| Jerin Tolin | Promoter Selling Shareholder | 39.30% | — |
| Dr. Kalamparambil Varkey Tolin | Promoter | — | — |
| Jerin Tolin | Promoter | — | — |
| K V Tolin | Promoter | 52.14% | 44.01% |
| Jerin Tolin | Promoter | 44.88% | 39.30% |
| Annie Varkey | Promoter | 2.98% | 0.23% |
| Jose Thomas Thekkekara | Promoter Group | — | 8.47% |
| Kalamparambil Varkey Tolin | Managing Director | — | — |
| Dr. Kalamparambil Varkey Tolin | Promoter | — | — |
| Jerin Tolin | Promoter | — | — |
| Dr. Kalamparambil Varkey Tolin | Promoter Selling Shareholder | — | — |
| Jerin Tolin | Promoter Selling Shareholder | — | — |
Leadership
Dr. Kalamparambil Varkey Tolin · Chairman and Managing Director
Ravi Sharma · Chief Financial Officer
Umesh Muniraj · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Tolins Tyres IPO FAQs
What is the lot size of Tolins Tyres IPO?
The minimum lot size of Tolins Tyres IPO is 66 shares. One lot costs ₹14,916 at the cut-off price.
When does Tolins Tyres IPO open and close?
Tolins Tyres IPO opened for subscription on 09 Sep 2024 and closed on 11 Sep 2024.
What is the listing date of Tolins Tyres IPO?
Tolins Tyres IPO listed on 16 Sep 2024.