Tolins Tyres Shares Hit Upper Circuit on Debut

New Delhi, Sep 16 (PTI) 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 Rs 226.

The company's stock began the trade at Rs 227, up 0.44 per cent from the issue price on the BSE. It later jumped 5.44 per cent to Rs 238.30, the upper circuit limit.

At the NSE, shares of the firm listed at Rs 228, up 0.88 per cent. Later, the stock hit the highest trading permissible limit for the day at 239.40, up 5.92 per cent.

The company commanded a market valuation of Rs 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 Rs 215-226 per share.

The Kerala-based company's initial share sale was a combination of a fresh issue of equity shares worth Rs 200 crore and an Offer-for-Sale (OFS) of equity shares to the tune of Rs 30 crore.

Of the Rs 200 crore IPO proceeds, Rs 75 crore will be used to augment the long-term working capital requirements of the company and Rs 62.55 crore for payment of debt.

Further, Rs 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.