Innovative Tyres and Tubes Ltd

innovative tyres and tubes

About the Company:

Innovative Tyre & Tubes  Ltd was incorporated in the year 1995, they are a tyre and tube manufacturing Company, manufacturing & marketing the products under their flagship brand “Innovative”.

Company’s product range covers all highway sizes, Off The Road (OTR) highway sizes, agriculture and industrial tyres. They have a factory outlet for display of products at Vadodara.

Currently Company caters to all three segments of market viz. exports, domestic/after sales market and OEM like CEAT Limited For the year ended March 31, 2017, Company’s revenue from export operations constituted 44% (including deemed export) of their total revenue from operations.

Company benefits from a diverse geographic spread of operations with currently the Company exports to more than 27 countries. Domestically also they are supplying products on PAN India basis.

They are currently dealing into tyres and tubes.Company has a wide range of tyre products for various types of vehicle segments. At present,they have over 100 products / variants.

Company is also carrying out job work activities for CEAT Limited for the past two decades which serves as an independent business model for them.

Company has a widespread customer base with their domestic customer base situated in most of the regions of the country and their international customers situated across varied countries covering Middle East, South East Asia, Africa, Latin American Countries etc.

Expansion of existing facility:

Company currently has manufacturing facilities located at Vadodara,Gujarat where tyres are manufactured at Unit I & tubes at Unit II. They have a land admeasuring 27,833 sq. meter at Unit I and 11,200 sq. meter at Unit II, out of which land admeasuring 5,420 sq meter at Unit I is available for expansion and company is planning to utilised 3,000 sq. meter for expansion of existing facility.

Company’s key product offerings include:

  • Motorcycle and Scooter Tyres.
  • Three Wheelers and Passenger Vehicle Tyres.
  • Light Truck and Bus Tyres.
  • Special Purpose Tyres.


Future Growth Strategies of the Company:

Expand the production capacity:

Currently company has a combined production capacity of Tyres and Tubes of 12,000 MT p.a.They intend to expand the manufacturing capacity by 8,000 tonnes p.a, thereby taking the combined capacity to 20,000 tonnes per annum.

Expand the product base by introducing new products and product range:

Company intends to continue to invest in developing new products for both the domestic and international market. They aim to venture into radial tyres manufacturing for agricultural sector as the Indian market is witnessing a shift from nylon tyres. Company also intends to trade in radial tyres.

Expand International operations:

Company would continue to focus on key international clusters. They have plans to participate in various international exhibitions and aim to increase and expand their customer base and operations.

Widen the customer base:

Company’s strategy is to widen their customer base in domestic and international market by introducing new quality products and enhanced product range.

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Objectives of the issue:

  • Expansion of existing facility.
  • Long term working capital requirement.
  • General Corporate Purposes.
  • Listing Benefits.


Positives for the Company:

  • Experienced Management team.
  • Wide product range and customised product offering.
  • Diverse Customer Base.
  • Qualitative Products.


Financials of the Company:

(in Crores) FY 13 FY 14 FY 15 FY 16 FY 17
Revenue 103.01 126.57 130.52 125.90 132.53
Net Profit 0.77 2.25 4.12 1.89 4.07


IPO Details:

Details Info
Issue Opens on 22nd September 2017
Issue Closes on:. 26th September 2017
Issue Price Rs.42 – 45
Face Value Rs.10
Minimum Lot 3000
Minimum Investment Rs.1,35,000
Issue Constitutes 35%
Issue Size Rs.28.33 cr
Market Cap Rs.80.96 cr
Listing at NSE SME
Equity Shares Offered 62,97,000
Equity Shares Prior 1,16,94,561
Equity Shares after the issue 1,79,91,561


Important Dates:

Finalization of Basis of Alottment on or Before 29th September 2017
Initiation of Refunds on or Before 3rd October 2017
Credit of Equity Shares: on or Before 4th October 2017
Listing Date: on or Before 5th October 2017


IPO Valuation parameters:

Earnings Per Share (EPS) Price To Earnings ratio (PE) Return on Net Worth (RoNW) Net Asset Value (NAV)
3.63 12.36 8.89% 39.22


Markets Guruji Opinion:

IPO View Apply For: Expected listing Gain:
Subscribe Listing Gains 20%