Emerald Tyre Manufacturers Limited is set to launch its initial public offering (IPO) from December 5 to December 9, 2024, aiming to raise approximately ₹49.26 crore. The IPO will consist of a fresh issue of about 49.86 lakh shares and an offer for sale of 1.99 lakh shares. Established in 2002, Emerald Tyre specializes in manufacturing tires for various material handling applications, including forklifts and agricultural machinery, under the brand name “GRECKSTER.” With a production facility in Tiruvallur, Tamil Nadu, and a strong reputation in both domestic and international markets, this IPO provides investors with an opportunity to engage with a growing player in the specialized tire manufacturing sector, as demand for high-quality tires continues to rise amid expanding industrial activities in India.
₹85.5
₹95
₹180.50
Expert Opinions
Market sentiment for the Emerald Tyre Manufacturers IPO is cautiously optimistic, reflecting growing interest in the specialized tire manufacturing sector. Company strengths include a solid operational foundation with over two decades of experience, a diverse product range catering to various applications, and an established reputation in both domestic and international markets. The company reported a revenue increase to ₹171.97 crore in FY24, along with a profit of ₹12.24 crore, indicating healthy financial growth.
However, risks and challenges include reliance on a limited geographic area and potential fluctuations in raw material prices. The valuation analysis places the IPO price band at ₹90 to ₹95 per share, which offers an attractive entry point given its earnings per share of ₹8.71. From a long-term investment perspective, Emerald Tyre is well-positioned to capitalize on the increasing demand for quality tires in the industrial sector.
Investor Considerations
Investors considering the Emerald Tyre Manufacturers IPO should assess several key factors. Company performance and fundamentals indicate steady growth, with FY24 revenue at ₹171.97 crore and a profit of ₹12.24 crore, reflecting a positive trajectory in financial health. The sector outlook is favorable, driven by increasing demand for specialized tires in various industries, including construction and agriculture. The IPO valuation is set between ₹90 and ₹95 per share, making it accessible for investors, with a market lot of 1,200 shares.
Growth prospects are promising as the company aims to expand its production capacity and enhance its market presence both domestically and internationally. However, potential risk factors include fluctuations in raw material prices and competition from established players in the tire manufacturing sector. A long-term investment horizon is advisable, as Emerald Tyre is well-positioned to capitalize on the growing industrial activities in India.
| Date | GMP | Trend |
|---|---|---|
| 11 Dec 2024 10.50 | ₹85.5 | --- |
| 10 Dec 2024 11.15 | ₹85.5 | --- |
| 09 Dec 2024 16.40 | ₹85.5 | Up |
| 06 Dec 2024 10.48 | ₹70 | --- |
| 05 Dec 2024 10.54 | ₹70 | Up |
| 04 Dec 2024 15.31 | ₹60 | Up |
| 03 Dec 2024 11.16 | ₹45 | --- |
| 02 Dec 2024 15.34 | ₹45 | Up |
| 01 Dec 2024 11.20 | ₹00 | --- |
| 30 Nov 2024 13.01 | ₹00 | --- |
| 29 Nov 2024 12.26 | ₹00 | --- |
FAQs
The Grey Market Premium showed perfect accuracy in predicting Emerald Tyre Manufacturers’ listing performance. The GMP of ₹85.50 predicted a premium of 90% over the issue price, and the stock delivered exactly the same gain of 90%. With zero prediction error, the GMP perfectly captured both the direction and magnitude of the listing gains, demonstrating exceptional precision in this case.
Emerald Tyre Manufacturers IPO Current GMP is ₹85.5.
Emerald Tyre Manufacturers IPO Expected Returns is 90.00%.
Emerald Tyre Manufacturers IPO estimated listing price is ₹180.5.