Objectives of the Issue Offer for sale – Rs 200 cr & Fresh Issue – Rs 30 cr

The Objectives of the Offer are to:
1. Repayment and/or prepayment, in full, of certain outstanding loans (including foreclosure charges, if any) availed by the company – Rs 69.97 crore​
2. Augmenting the long-term working capital requirements of the company – Rs 75 crore​
​3. 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 – Rs 23.15 crore​
4. Repayment and/or prepayment, in full, of certain outstanding loans of the wholly owned subsidiary, Tolin Rubbers Private Limited – Rs 15.15 crore
5. Augmentation of long-term working capital requirements of the wholly owned subsidiary, Tolin Rubbers Private Limited – Rs 8 crore
6. General corporate purposes – Rs 8.73 crore​

Tolins Tyres specializes in the production of new tyres and treaded rubber, making it a leading player in the tyre retreading sector across India. The company exports its products to 40 countries, including the Middle East, East Africa, Jordan, Kenya, and Egypt.

Their product range includes tyres for two-wheelers, three-wheelers, light commercial vehicles, and agricultural use, as well as precured tread rubber and other related products such as bonding gum, tyre flaps, and vulcanizing solutions.

Operating under the brand name "Tolins Tyres," the company has a presence in India, the Middle East, and Africa. It holds a 2.73% market share in treaded tyres in India and a global market share of 0.18%.

Tolins Tyres runs three manufacturing facilities, with two located in Kerala, India, and one in the UAE, collectively producing 1.51 million tyres, 12,486 tons of tread rubber, and 17,160 tons of rubber compound annually.

The company’s revenue grew by 100% between FY2022 and FY2024 and stood at Rs 227.22 crore for FY2024.

In FY2024, the company’s Return on Net Worth stood at 25.87%, an improvement compared to 25.70% and 5.83% in FY2023 and FY2022, respectively.

For FY2024, the operating margins for the company improved to 20.41%, from 10.37% recorded in FY2023 and 5.37% recorded in FY2022.

Consequently, profit margins for FY2024 also improved to 11.45%, from 4.22% and 0.56% recorded in FY2023 and FY2022, respectively.

The company has not been able to generate positive cash flow from operations for the last three years. The company reported a negative CFO of Rs 3.59 crore in FY2024.

As of 30th June 2024, the company had a debt of Rs 78.77 crore (including lease liabilities).