Emerald Resilient Tyres, established in 2002, has emerged as a global leader in the industrial tyre segment. With its reputation as a reliable supplier and solution provider, the company offers a broad range of products designed to meet the diverse needs of customers worldwide. Known for its time-tested products and customer-centric approach, Emerald has become a preferred destination for Total Industrial Tyre-Wheel Solutions, catering to both local and international markets.

Emerald Tyre Manufacturers IPO Details

Emerald Tyre Manufacturers is set to raise ₹49.26 crores through its book-built issue, which includes 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 price band for the IPO is set between ₹90 and ₹95 per share. With a market capitalization of ₹185.02 crores at the upper end of the price band, Emerald Tyre’s IPO is drawing significant attention from investors.

The subscription period for the Emerald Tyre Manufacturers IPO opens on December 5, 2024, and closes on December 9, 2024. The allotment is expected to be finalized on December 10, 2024, with shares set to list on the NSE SME platform on or around December 12, 2024. The lot size of the IPO is 1,200 shares, and retail investors must invest a minimum of ₹1,14,000, while High-Net-Worth Individuals (HNIs) are required to invest ₹2,28,000 for two lots.

Emerald Tyre Manufacturers IPO GMP Today

As of December 9, 2024, the Grey Market Premium (GMP) for the Emerald Tyre Manufacturers IPO stands at ₹61, indicating a 64.07% potential listing gain. The GMP trend has shown steady growth, with the price increasing from ₹29 on December 2, to ₹42 on December 4, and reaching ₹61 by December 6.

While the Grey Market Premium gives an indication of listing gains, it’s important to remember that GMP is speculative, and actual listing prices may differ based on market conditions.

Subscription Status and Anchor Investors

As of 11:20 AM on December 9, 2024, the Emerald Tyre Manufacturers IPO has been subscribed 173.91 times, reflecting high demand. Additionally, the company has raised ₹13.90 crores from anchor investors by allocating 14.64 lakh equity shares at ₹95 per share, helping to generate market confidence.

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The Current active IPO is Dhanlaxmi Corp and Emerald Tyre Manufacturers.

Allotment Process

The allotment process for the IPO is expected to be finalized on December 10, 2024, and investors can check the allotment status by visiting the registrar's website. To check their allotment status, investors must:

• Navigate to the IPO allotment status page.
• Select Emerald Tyre Manufacturers Limited IPO.
• Enter their application number, PAN, or DP Client ID.
• Submit the details to view the allotment status.

Objectives of the IPO

The proceeds from the fresh issue will be utilized for:

1. Capital expenditure of ₹4,085.28 lakhs.
2. General corporate purposes.
3. Offer expenses.

Financial Performance and Metrics

Emerald Tyre’s financial performance has shown impressive growth:

• Revenue for FY24: ₹6,492.75 lakhs.
• EBITDA for FY24: ₹1,081.42 lakhs.
• Profit After Tax (PAT) for FY24: ₹413.64 lakhs.

The Pre-issue P/E ratio stands at 11.00x, and the Post-issue P/E ratio is 15.24x. The company boasts a Return on Capital Employed (ROCE) of 17.62% and a Return on Equity (ROE) of 19.18%. These metrics indicate that the IPO is fairly priced and suggest the company has strong growth prospects.

Should You Apply?

Given the strong subscription demand, solid financials, and the potential listing gains indicated by the Grey Market Premium, investors are advised to apply for the Emerald Tyre Manufacturers IPO. The attractive valuation and robust growth prospects position it as a good investment opportunity, especially for those seeking long-term gains in the industrial tyre sector.

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