Emerald Tyre Manufacturers Limited IPO Overview
Emerald Resilient Tyres, a prominent manufacturer in the industrial tyres segment since 2002, is gearing up for its Initial Public Offering (IPO). The company, recognized for its global footprint and reliable product offerings, will raise a total of ₹49.26 Crores through the IPO. The issue consists of a fresh issue of 49.86 Lakh shares worth ₹47.36 Crores and an offer for sale of 1.99 Lakh shares totaling ₹1.89 Crores. The IPO opens for subscription on December 5, 2024, and closes on December 9, 2024.

Key Details of the Emerald Tyre Manufacturers IPO

• IPO Price Band: ₹90 to ₹95 per equity share
• Market Capitalization at Upper Band: ₹185.02 Crores
• Lot Size: 1,200 shares (minimum investment of ₹1,14,000 for retail investors)
• Listing Date: Expected on December 12, 2024, on the BSE SME segment.
• Subscription Period: December 5, 2024 to December 9, 2024

The company’s book-running lead manager is GYR Capital Advisors Private Limited, and Link Intime India Private Limited is the registrar for the issue. The market maker for the IPO is Giriraj Stock Broking Private Limited.

Emerald Tyre Manufacturers IPO Grey Market Premium (GMP)

As of today, the Grey Market Premium (GMP) of the Emerald Tyre Manufacturers IPO stands at ₹29, signaling a potential listing gain. It’s important to note that Grey Market Premium is based on unregulated trading and does not reflect the actual market discovery process.

Objectives of the Emerald Tyre Manufacturers IPO

The funds raised from the fresh issue will be used for the following objectives:

1. Capital Expenditure: ₹4,085.28 Lakhs
2. General Corporate Purposes
3. Offer Expenses

Financial Performance and Valuation

The financial performance of Emerald Tyre Manufacturers in recent years indicates steady growth:

• Revenue for FY24 (ending July 31, 2024): ₹6,492.75 Lakhs
• EBITDA for FY24: ₹1,081.42 Lakhs
• Profit After Tax (PAT) for FY24: ₹413.64 Lakhs
• Pre-Issue EPS: ₹8.64
• Post-Issue EPS: ₹6.23
• P/E Ratio: 11.00x (pre-issue), 15.24x (post-issue)

The company’s Return on Capital Employed (ROCE) stands at 17.62%, and Return on Equity (RoE) at 19.18% for FY24, indicating solid profitability and efficient operations.

IPO Allotment Process

The allotment for the Emerald Tyre Manufacturers IPO is expected to be finalized on December 10, 2024, and investors can check their allotment status online through the registrar’s website. Here’s how to check the allotment status:

1. Visit the registrar’s IPO allotment status page.
2. Select Emerald Tyre Manufacturers Limited IPO from the dropdown.
3. Enter the required details such as application number, PAN, or DP Client ID.
4. Submit to view the allotment status.

Anchor Investors and Subscription Updates

The company has already raised ₹13.90 Crores from Anchor Investors at the issue price of ₹95 per share. A total of 14,64,000 equity shares were allocated to Anchor Investors. The shares offered to Anchor Investors come from the Qualified Institutional Buyers (QIBs) portion.

IPO Review and Investment Recommendation

Emerald Tyre Manufacturers has shown strong growth in its financial performance, with consistent revenue and profit expansion. The IPO is attractively priced, with a pre-issue P/E ratio of 11.00x and a post-issue P/E ratio of 15.24x. Given the company’s reliable track record and steady financials, the IPO appears fairly priced for investors. The GMP of ₹29 suggests a potential listing gain of around 30%.

For risk-seeking investors, applying for the IPO could offer a good opportunity for listing gains or long-term investment. However, investors should also be aware of the inherent risks associated with investing in SME IPOs.

In conclusion, Emerald Tyre Manufacturers Limited IPO offers a promising investment opportunity, particularly for those looking for exposure to the industrial tyre sector.