The second day of bidding, Tolins Tyres Limited's initial public offering saw strong demand across categories, with the offering being booked nearly three times on Tuesday, September 10.
In comparison to the 74.88 lakh shares on offer, bids for over 3.89 crore shares were received for the mainboard issue, resulting in an overall subscription of 5.20 times.
Bids received in different categories
Against the 37.44 lakh shares reserved for the category, retail investors applied for over 3.14 crore shares, booking the portion by a factor of 8.39 times.
In the category of non-institutional investors (NIIs), the issue received 4.07 times as many subscriptions, with applications for 65.29 lakh shares compared to the 16.04 lakh shares reserved for the segment.
Applications for 9.63 lakh shares were received for the qualified institutional buyers (QIBs) segment, out of the 21.39 lakh shares reserved for this category. This represents a 45 per cent booking rate.
Issue size and structure
The Rs 230 crore Tolins Tyres IPO is a book-building issue. The 88 lakh shares that are being issued fresh, totaling Rs 200 crore, and the 13 lakh shares that are being offered for sale (OFS), valued at Rs 30 crore, make up the mainboard public offer.
Price band and minimum size
The IPO price range for the company has been set at Rs 215 to Rs 226 per share.
An application must have a minimum lot size of 66 shares. The minimum amount that retail investors can invest is Rs 14,916.
The minimum investment for small non-institutional investors (sNII) is Rs 208,824, or 14 lots totalling 924 shares. The minimum investment for big non-institutional investors (bNII) is Rs 10,14,288 (68 lots, or 4,488 shares).
Subscription timetable of IPO
The period from September 9 to September 11 is when you can subscribe for the IPO. On September 12, the IPO allotment status is probably going to be finalised. Successful bidders will receive their shares credited into their demat accounts on September 13, and non-allottees will receive their refunds on the same day.
On September 16, the company's shares are probably going to be listed on the NSE and BSE.
Utilisation of proceeds
The proceeds from the initial public offering (IPO) will be used by Tolins Tyres Limited to fund investments in its wholly-owned subsidiary, Tolin Rubbers Private Limited, as well as the full or partial repayment of some outstanding loans and long-term working capital requirements. The funds will be used for general corporate purposes to the extent possible.
