Emerald Tyre Manufacturers IPO Opens December 5; Check Details
Emerald Tyre Manufacturers IPO
Emerald Tyre Manufacturers IPO: A Detailed Look at the Price Band, Subscription Dates, Business Model, and More
Emerald Tyre Manufacturers Limited, a prominent player in the tire manufacturing and services industry, is set to launch its Initial Public Offering (IPO) on December 5, 2024.
The company is looking to raise a total of Rs 49.26 crore through the public issue, which has been priced within a band of Rs 90 to Rs 95 per share.
The IPO subscription window will remain open for retail investors until December 9, 2024, offering a significant opportunity for those looking to invest in the fast-growing tire sector.
The IPO will also open for anchor investors a day earlier, on December 4, 2024, to secure their commitment before the public offer begins.
Once the subscription period concludes, the shares of Emerald Tyre Manufacturers will be listed on the NSE SME (Small and Medium Enterprises) platform, with a tentative listing date of December 12, 2024.
This move signifies a strategic step for the company as it seeks to enhance its market presence and tap into the capital markets to fund its expansion plans.
Key Information About Emerald Tyre’s IPO
Emerald Tyre Manufacturers is set to offer a combination of fresh equity shares and an Offer for Sale (OFS) in its IPO.
Specifically, the company will issue 49.86 lakh fresh equity shares valued at Rs 47.37 crore, with an additional 1.99 lakh shares worth Rs 1.89 crore being sold through the OFS mechanism by existing shareholders.
Here are the key details you need to know about the IPO:
- Price Band: Rs 90 to Rs 95 per share
- Total Amount to be Raised: Rs 49.26 crore
- IPO Opening Date: December 5, 2024
- IPO Closing Date: December 9, 2024
- Anchor Investor Subscription Date: December 4, 2024
- Listing Platform: NSE SME
- Tentative Listing Date: December 12, 2024
- Lot Size: 1200 shares (Retail investors must apply for a minimum of Rs 1,14,000)
- Lead Manager: GYR Capital Advisors Private Limited
- Registrar: Link Intime India Private Limited
- Market Maker: Giriraj Stock Broking
Following the subscription period, the allocation of shares to successful investors is expected to take place on December 10, 2024.
The listing on the NSE SME platform will mark an important milestone for Emerald Tyre, positioning it for future growth in both domestic and international markets.
Company Overview and Business Model
Emerald Tyre Manufacturers Limited was founded in 2002 and has since grown to become a leading manufacturer, supplier, and service provider in the tire industry.
The company specializes in the production of off-highway tires, which are used in a wide variety of vehicles, including agricultural machinery, industrial vehicles, and construction equipment.
Their comprehensive tire solutions include the manufacturing of tires, as well as wheel and off-highway services, which are critical to industries that rely on heavy machinery and vehicles.
The company’s products are marketed under the brand name “GRECKSTER,” which has gained recognition in the domestic and international markets for its quality and reliability.
As of March 31, 2024, Emerald Tyre employed 224 permanent employees and 191 contractual staff, reflecting its growing workforce to support its operations.
Emerald Tyre has made significant strides in expanding its presence in international markets, with exports to countries including the UAE, Russia, the USA, Belgium, Germany, Netherlands, Hungary, Portugal, Italy, Denmark, and Poland.
This global footprint is a testament to the company’s commitment to delivering high-quality tire solutions that meet the diverse needs of its customers worldwide.
Use of IPO Proceeds
The proceeds from the IPO will be primarily utilized for the following purposes:
- Capital Expenditure: The company plans to invest in enhancing its manufacturing capacity, which will help in meeting the increasing demand for its products, both in domestic and international markets.
- General Corporate Purposes: Emerald Tyre intends to use a portion of the funds for general corporate needs, including working capital requirements and operational expenses.
- Offer Expenses: The funds will also cover the expenses associated with the IPO, including fees to the lead manager, registrar, and other parties involved in the issue process.
By utilizing the IPO funds strategically, Emerald Tyre aims to improve its financial position, expand production capabilities, and enhance operational efficiencies, all of which will contribute to the company’s long-term growth and profitability.
Strong Growth Prospects in the Global Tire Market
The global tire industry has witnessed steady growth in recent years, driven by increased demand for both passenger and commercial vehicles.
The rise in automotive sales, especially in emerging markets, has been a key growth factor for tire manufacturers.
Furthermore, the demand for off-highway tires, such as those used in agricultural and construction equipment, has surged due to the expansion of infrastructure projects and the growing need for mechanization in agriculture.
Emerald Tyre’s focus on providing specialized tire solutions for industrial and agricultural machinery places it in a favorable position to capitalize on these trends.
As the company continues to expand its product offerings and strengthen its global presence, it stands to benefit from the continued growth of key markets, including the USA, Europe, and Asia.
Management’s Vision and Chairman’s Statement
Chandrasekaran Thirupathi Venkatachalam, the Chairman and Managing Director of Emerald Tyre Manufacturers, shared his thoughts on the IPO, emphasizing its significance for the company’s future.
He said, “This IPO is a pivotal step in our journey, reinforcing our commitment to delivering top-quality tire solutions under the trusted ‘GRECKSTER’ brand.
With over two decades of experience in the industry, we have built a solid foundation in both domestic and international markets.”
He further added, “The proceeds from the IPO will be instrumental in supporting our growth strategy, allowing us to expand our operations globally, diversify our product offerings, and solidify our financial standing.
This will not only improve our operational efficiency but also enhance value for our customers through innovative, durable, and high-performance tire solutions.”
Venkatachalam’s statement highlights the company’s dedication to growth and innovation, and how the IPO will help facilitate these goals.
As Emerald Tyre looks to expand its footprint, the IPO proceeds will provide the necessary financial resources to strengthen its market position, enhance its product development efforts, and ensure that it remains competitive in the ever-evolving tire industry.
Final Thoughts for Investors
Emerald Tyre Manufacturers’ IPO represents a compelling investment opportunity for those looking to gain exposure to the thriving tire industry.
With a robust business model, strong brand presence, and strategic expansion plans, Emerald Tyre is poised for growth in both domestic and international markets.
The company’s focus on high-quality tire products, along with its commitment to innovation and customer satisfaction, makes it a potentially lucrative investment for long-term growth.
Investors interested in participating in the IPO should carefully review the company’s financials, business strategy, and market outlook to assess the potential risks and rewards of investing in Emerald Tyre Manufacturers. As always, it is advisable to consult with a financial advisor before making any investment decisions.
With the IPO opening on December 5, 2024, and the chance to be part of the company’s future growth, Emerald Tyre Manufacturers could be an attractive option for investors looking to diversify their portfolios and invest in a company with a strong track record and promising future.
