Emerald Tyre Manufacturers IPO - AstroIPO

Emerald Tyre Manufacturers IPO


November 29, 2024 Written By Mihir Gohel, Reviewed and Fact Checked by Harpal Parmar

Emerald Tyre Manufacturers Ltd. is set to make a significant stride in the public market with its upcoming IPO on the NSE SME platform. With a market capitalization of ₹185.03 Crore, the company presents an intriguing opportunity for investors interested in the manufacturing sector.

The IPO offers 5,185,200 shares priced between ₹90 to ₹95 per share, with a total issue size of ₹49.26 Crore. This includes a fresh issue of 4,986,000 shares worth ₹47.37 Crore and an offer for sale of 199,200 shares aggregating to ₹1.89 Crore.

Scheduled from December 5th to December 9th, 2024, the IPO requires a minimum application of 1,200 shares. At the cut-off price, this translates to an investment of ₹114,000. The shares come with a face value of ₹10, making it an accessible entry point for both retail and institutional investors.

Emerald Tyre Manufacturers IPO Details

The key details of Emerald Tyre Manufacturers’s IPO are outlined below, covering all crucial aspects from price range to investment requirements and regulatory documents.

IPO Size ₹49.26 Cr
Price Range ₹90 - ₹95
Retail Quota 35%
QIB Quota 50%
NII Quota 15%
Employee Discount --
Listing at NSE
Minimum Quantity 1200
Investment (cut-off price) ₹114,000
Pre IPO Promotor Holding 67.62%
Post IPO Promotor Holding Update soon
DHRP Draft Click Here
RHP Draft Click Here
Anchor Investors List Click Here

Emerald Tyre Manufacturers IPO Timelines

The IPO process for Emerald Tyre Manufacturers includes key dates for participants to know. The timeline allows for strategic planning and participation, helping investors stay informed and engaged throughout the entire process.

05/12/2024
Start Date
09/12/2024
End Date
10/12/2024
Allotment Date View Status
11/12/2024
Refund Initiation
11/12/2024
Credit of Shares to Demat Ac
12/12/2024
Listing Date

Emerald Tyre Manufacturers IPO Lot Size

The Emerald Tyre Manufacturers IPO has a fixed lot size of 1,200 shares, at an upper price band of ₹95 per share, requiring ₹114,000 per lot for retail investors. For HNI investors, the minimum application is 2,400 shares (2 lots) amounting to ₹228,000.

Application Lot Size Shares Amount
Retail Minimum 1 1200 ₹114,000
Retail Maximum 1 1200 ₹114,000
HNI Minimum 2 2400 ₹228,000

Emerald Tyre Manufacturers IPO Subscription Status

The subscription status for Emerald Tyre Manufacturers IPO shows market demand across different investor categories, providing valuable insights into the offering’s performance. You can track real-time subscription data below.

QIB NII Retail EMP Total
195.95x 912.18x 558.11x -- 530.59x

IPO Performance on Listing Day

Opening Price Closing Price Day High Day Low
₹180.50 ₹189.50 ₹189.50 ₹180.50

Emerald Tyre Manufacturers IPO Company Financials

Year Total Income Total Expense PAT
FY 2022 ₹134.70 ₹128.25 ₹4.85
FY 2023 ₹167.98 ₹155.97 ₹8.93
FY 2024 ₹171.97 ₹155.82 ₹12.24

About Company

Emerald Tyre, established in 2002, specializes in manufacturing and supplying a wide range of tires designed for material handling applications. Catering to equipment like forklifts, mining machinery, and airport ground support, the company operates under the brand “GRECKSTER” and has built a solid reputation in domestic and international markets. With over two decades of global experience, Emerald Tyre has positioned itself as a prominent player in the off-highway tire manufacturing industry.

Operating from a 10.05-acre facility in Tiruvallur, Tamil Nadu, the company has an annual production capacity of 7,040 metric tons of tires, tubes, and wheels. As of November 2023, Emerald Tyre employed 416 personnel, including both permanent and contractual staff. Its products are exported to key global markets, including the USA, UAE, Russia, and several European countries like Germany, the Netherlands, and Italy, further solidifying its international presence.

Incorporation Date Sector Managing Director
2002 Manufacturing V. T. Chandhrasekharan

Know Before Investing

Emerald Tyre Manufacturers IPO Strengths

  • Emerald Tyre has over two decades of experience in manufacturing Off-The-Road (OTR) tyres, demonstrating reliability and expertise in the industry.
  • The company has increased its production capacity from 8,800 tonnes per annum to 10,560 tonnes per annum, with capacity utilization rising significantly from 54% to 84% in recent years.
  • Emerald Tyre reported a profit before interest, lease rentals, depreciation, and taxation (PBILDT) margin of 17.04% in FY24, reflecting enhanced operational efficiencies and better product realization.

Emerald Tyre Manufacturers IPO Risks

  • The company’s profitability is vulnerable to fluctuations in the prices of raw materials like natural and synthetic rubber, which are affected by crude oil market dynamics.
  • With an overall gearing ratio of 1.21x as of March 31, 2024, Emerald Tyre’s leveraged capital structure may pose financial risks during economic downturns.
  • The need to maintain high inventory levels for timely order fulfillment results in a working capital-intensive model that can strain liquidity and operational flexibility.

Swot Analysis for Emerald Tyre Manufacturers IPO

Strengths

Established Brand, Diverse Product Range, Strong Financial Performance, Experienced Management Team

Weaknesses

High Debt Levels, Dependence on Raw Material Prices, Limited Geographical Reach

Opportunities

Growing Automobile Industry, Expansion into New Markets, Technological Advancements

Threats

Intense Competition, Regulatory Changes, Economic Downturns

Company Details

Emerald Tyre Manufacturers Limited

Emerald House, Plot No.2
Second Street, Porur Gardens, Phase-I,
Vanagaram, Tiruvallur, Poonamallee, 600095

Phone: 9043063194

Email: cosec@emeraldtyres.com

Website: https://emeraldtyres.com/

IPO Registar Details

Link Intime India Private Ltd

Phone: +91-22-4918 6270

Email: emerald.ipo@linkintime.co.in

Website: https://linkintime.co.in/initial_offer/public-issues.html

FAQs

The key objectives of Emerald Tyre Manufacturers IPO are:

  • The funds will be utilized to meet the capital expenditure requirements.
  • A portion of the proceeds is allocated for general corporate purposes.
  • The funds will also cover offer-related expenses.

GYR Capital Advisors Private Limited is the book-running lead managers for the Emerald Tyre Manufacturers IPO.

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