TOLINS TYRES LIMITED INITIAL PUBLIC OFFERING TO OPEN ON SEPTEMBER 09, 2024

Mumbai, September 07, 2024: Tolins Tyres Limited (“TTL” or “The Company”) shall open its Bid/Offer in relation to its initial public offering of Equity Shares on Monday, September 09, 2024.

The total offer size of Equity Shares (face value ₹ 5 each) aggregating up to ₹ 230 crore comprises of Fresh Issue aggregating up to ₹ 200 crore and Offer for Sale aggregating up to ₹ 30 crore. (“Total Offer Size”).

The Anchor Investor Bidding date shall be on Friday, September 06, 2024and the Bid Offer will be closed on Wednesday, September 11, 2024. (“Bid Details”).

The price band of the Offer is fixed at ₹ 215 to ₹ 226 per Equity Share. (“The Price Band”).

Bids can be made for a minimum of 66 Equity Shares and in multiples of 66 Equity Shares thereafter. (“Bid Lot”).

Tolins Tyres Limited is one of the leading players in the industry with all India presence with a diverse product range and is one of the companies that is present in both verticals – manufacturing of new tyres and tread rubber (Source: Company Commissioned CRISIL Report). It is primarily engaged in manufacturing of bias tyres for comprehensive array of vehicles (including light commercial, agricultural and two/three-wheeler vehicles) and precured tread rubber and are also involved in manufacturing of ancillary products like bonding gum, vulcanizing solution, tyre flaps and tubes. It operates from three Manufacturing Facilities out of which two are located at Mattoor in Kalady, Kerala and the third one is located in Al Hamra Industrial Zone in Ras Al Khaimah in UAE.

The Company plans to utilize net proceeds of the Fresh Issue towards (i) Repayment and / or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the Company amounting ₹ 69.97 crore (ii) Augmentation of long-term working capital requirements of the Company amounting ₹ 75 crore (iii) Investment in the 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 amounting ₹ 23.154 crore and remaining toward General corporate purposes (the “Objects of the Offer”).

An offer for sale of Equity Shares aggregating up to ₹30 crore (the “Offer for Sale”), consisting of Equity Shares aggregating up to ₹15 crore by Dr. Kalamparambil Varkey Tolin and Equity Shares aggregating up to ₹15 crore by Jerin Tolin (collectively, the “Promoter Selling Shareholders/ Selling Shareholders”)

The Equity Shares are being offered through the Red Herring Prospectus of the Company dated August 28, 2024 filed with the Registrar of Companies Ernakulam, Kerala. (“ROC”).

The Equity Shares of face value of ₹5 each to be Allotted through the Red Herring Prospectus are proposed to be listed on BSE Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE” and together with “BSE”, the “Stock Exchanges”). For the purposes of the Offer, the Designated Stock Exchange shall be BSE Limited. (“Listing Details”).

Saffron Capital Advisors Private Limited is the sole Book Running Lead Manager to the offer (“BRLM”) and Cameo Corporate Service Limited is the Registrar to the Offer.

This is an Offer in terms of Rule 19(2)(b) of the SCRR read with Regulation 31 of the SEBI ICDR Regulations. This Offer is being made through the Book Building Process in compliance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs” and such portion the “QIB Portion”) provided that the Company in consultation with the BRLM, may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price, in accordance with the SEBI ICDR Regulations. In the event of under subscription or non-allocation in the Anchor Investor Portion, the balance Equity Shares of face value of ₹5 each shall be added to the Net QIB Portion.

Further, 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only and the remainder of the Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors) including Mutual Funds, subject to valid Bids being received at or above the Offer Price. However, if the aggregate demand from Mutual Funds is less than 5% of the Net QIB Portion, the balance Equity Shares of face value of ₹5 each available for allocation in the Mutual Fund Portion will be added to the remaining QIB Portion for proportionate allocation to QIBs.

Further, not less than 15% of the Offer shall be available for allocation to NIBs of which (a) one third portion shall be reserved for Bidders with Bid size of more than ₹0.20 million and up to ₹1.00 million; and (b) two-thirds of the portion shall be reserved for Bidders with Bid size of more than ₹1.00 million, provided that the unsubscribed portion in either of such sub-categories may be allocated to Bidders in other sub-category of the NIBs in accordance with SEBI ICDR Regulations, subject to valid Bids being received above the Offer Price and not less than 35% of the Offer shall be available for allocation to Retail Individual Bidders (“RIB”) in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price.

All Bidders (except Anchor Investors) are required to mandatorily utilise the Application Supported by Blocked Amount (“ASBA”) process by providing details of their respective ASBA accounts and UPI ID (in case of UPI Bidders using the UPI Mechanism), in which case the corresponding Bid Amounts will be blocked by the SCSBs or under the UPI Mechanism, as applicable to participate in the Offer. Anchor Investors are not permitted to participate in the Anchor Investor Portion of the Offer through the ASBA process. For details, see “Offer Procedure” beginning on page 380.

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