February 20, 2024
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Tolin Tyres filed DRHP
Tolins Tyres Limited, a company based in Kerala and one of leading player in the Tyre &
Treads industry with all India presence, has filed its Draft Red Herring Prospectus (“DRHP”)
with market regulator Securities and Exchange Board of India (“SEBI”).
The Company’s initial public offering comprises a fresh issue of up to Rs.200 Crores and an offer for sale (OFS) of Equity Shares aggregating upto Rs. 30 Crores by selling shareholders.
The offer for sale comprises of Equity Shares aggregating up to Rs. 15 Crore by Dr. Kalamparambil Varkey Tolin, Promoter, Chairman and Managing Director and Up to Rs. 15 Crore by Ms. Jerin Tolin, promoter, Non-Executive & Non Independent Director.
The company proposes to utilize the ? 62.5 Crores of Net Proceeds from the offer towards the repayment/ prepayment of certain outstanding loans (including foreclosure charges, if any) availed by the Company, Rs. 75 Crores towards augmentation of long-term working capital requirements of the Company, and Rs. 24.3 Crores towards Investment in their 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; and balance amount will be used for general corporate purposes.
Tolins Tyres Limited commenced their operations in 1982 as a proprietorship concern for manufacture of tread rubber, incorporated in 2003 and commenced production and sales in the year 2005 by Dr. Kalamparambil Varkey Tolin, Promoter, Chairman and Managing Director and Mr. Sankarakrishnan Ramalingam, Whole Time Director. Since 2004 Ms. Jerin Tolin, promoter, Non-Executive & Non Independent Director. The tyre retreading solutions provider operates its business from three manufacturing facilities, of which two are in Kalady, Kerala and the third one is in Ras Al Khaimah in UAE.
Currently, it has a production capacity of 1.51 million per annum tyre capacity, 12,486 tons per annum of tread rubber capacity and 17,160 tons per annum of rubber compounds. Currently, it is operating at an
average capacity utilization of around 25 % and intends to increase the capacity utilisation up to 75% in the next few years. Tolins Tyres, which competes with listed peers like Indag Rubber Limited, Vamshi Rubber Limited, TVS Srichakra Limited, GRP Limited, and Elgi Rubber Company Limited, has recorded standalone net profit at Rs. 4.99 crores for the year ended March FY23, against Rs. 0.63 crore in previous year, and during the same period, its revenue from operations increased to Rs. 118.3 crores, from Rs. 113.4 crores.
Saffron Capital Advisors Private Limited is the Book Running Lead Manager to the issue.
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