Shares of Tolins Tyres Ltd made a flat market debut on Monday, listing with a marginal gain of nearly 1 per cent, against the issue price of INR 226. The company’s stock began the trade at INR 227, up 0.44 per cent from the issue price on the BSE. It later jumped 5.44 % to INR 238.30, the upper circuit limit.
At the NSE, shares of the firm listed at INR 228, up 0.88 %. Later, the stock hit the highest trading permissible limit for the day at 239.40, up 5.92 %.
The company commanded a market valuation of INR 941.50 crore.
The initial public offer of Tolins Tyres received 23.87 times subscription on the closing day of bidding on September 11.
The initial share sale had a price band of INR 215-226 per share.
The Kerala-based company’s initial share sale was a combination of a fresh issue of equity shares worth INR 200 crore and an Offer-for-Sale (OFS) of equity shares to the tune of INR 30 crore.
Of the INR 200 crore IPO proceeds, INR 75 crore will be used to augment the long-term working capital requirements of the company and INR 62.55 crore for payment of debt.
Further, INR 24.36 crore will be used for investment in the company’s subsidiary, Tolin Rubbers for repaying its debt and to support its working capital requirements.
Tolins Tyres is a leading player in the tyre and treads industry and exports its products to 40 countries, including the Middle East, East Africa, Jordan, Kenya and Egypt.
