Tolins Tyres Limited has become the first manufacturing company from Kerala to enter the stock market in 16 years. Known for its rubber cultivation and tourism, the southern Indian state marks this listing as a significant milestone.
Retreading IPO Success
Tolins Tyres’ Initial Public Offering (IPO) featured 10,176,992 equity shares with a face value of INR 5, raising a total of INR 230 crore. The price band was set between INR 215 and INR 226 per share.
The issue included a fresh offering of 0.88 crore shares, raising INR 200 crore, and an offer to sell 0.13 crore shares, generating an additional INR 30 crore. Tolins debuted on 16th September, with shares opening at INR 227 on the Bombay Stock Exchange (BSE), a modest 0.4% premium over the issue price of INR 226. On the National Stock Exchange (NSE), shares opened at INR 228, representing a 1% premium.
IPO proceeds will primarily be used to service existing debts and loans, fund long-term working capital requirements, and invest in its wholly-owned subsidiary, Tolin Rubbers Private Limited. The remainder will cover general corporate expenses.
Founded in 2003, Tolins Tyres manufactures tyres and provides tyre retreading solutions. It exports to 40 countries, including the Middle East, East Africa, and nations such as Jordan, Kenya, and Egypt.
The company’s business is divided into two primary verticals: tyre manufacturing and tread rubber production. Their products include bias tyres for light commercial vehicles, off-road and agricultural tyres (OTR), and tyres for two- and three-wheelers. Tolins also produces tyre tubes, flaps, precured tread rubber (PCTR), conventional tread rubber, bonding gum, vulcanising solution, rope rubber, and more.
Tolins operates three production facilities—two in Mattoor, Kalady, and one in the Al Hamra Industrial Zone in Ras Al Khaimah, UAE. In 2023, the company acquired the Rado Tyres unit from Ceat Ltd. in Kerala, expanding its production capacity from 1,000 to 5,000 tyres daily, significantly boosting its output.
Tread rubber production accounts for 75% of Tolins’ overall business, with new tyre manufacturing making up the remaining 25%.
Tolins holds various quality certifications, including ISO 9001:2015 and IATF 16949:2016, issued by UK Certifications.
As of 31st March 2024, the company had developed 163 new designs and products, including creating moulds for these innovations.