Prior to its listing, Tolins Tyres’ shares were trading at a grey market premium (GMP) of Rs 30 per share, indicating a potential listing gain of 13% for investors.
Tolins Tyres made a subdued entry into the stock market on Monday. The company’s shares were listed at Rs 228 on the NSE, reflecting a modest premium of 0.88% above the issue price of Rs 226. On the BSE, the stock began trading at Rs 227, a slight premium of 0.44% over the issue price.
This muted debut contrasted with earlier expectations. Before listing, Tolins Tyres’ shares were trading at a grey market premium (GMP) of Rs 30 per share, which suggested a potential listing gain of 13% for investors. However, the GMP had previously been as high as Rs 39 per share when the issue first opened for bidding.
Tolins Tyres, based in Kerala, offered its shares within a price band of Rs 215-226. The IPO aimed to raise Rs 230 crore, consisting of a fresh share issue of Rs 200 crore and an offer-for-sale (OFS) of up to 13.27 lakh equity shares. The IPO received robust interest, being oversubscribed 23.89 times overall. Qualified institutional bidders (QIBs) subscribed 25.42 times, non-institutional investors subscribed 27.41 times, and the portion reserved for shareholders was subscribed 21.52 times during the three-day bidding period.
Founded in 2003, Tolins Tyres specializes in tyre manufacturing and retreading solutions. The company exports to 40 countries, including those in the Middle East and East Africa. It operates in two main segments: tyre manufacturing and tread rubber production.
Brokerages generally recommended a long-term investment in the IPO. Saffron Capital Advisors acted as the book-running lead manager, with Cameo Corporate Services serving as the registrar for the issue.
