Emerald Tyre IPO Allotment Updates: Steps, Subscription Status & Company Overview

Emerald Tyre IPO Details

• The IPO, which raised ₹49.26 crore, involved the issuance of 49.86 lakh new shares worth ₹47.37 crore and an offer for sale (OFS) of 1.99 lakh existing shares worth ₹1.89 crore. The shares were offered at a price range of ₹90 to ₹95.
• The minimum investment required for retail investors was ₹1.14 lakh for one lot of 1,200 shares. For high net-worth individuals (HNIs), the minimum investment was ₹2.28 lakh for two lots or 2,400 shares.
• The IPO subscription period ran from December 5 to December 9, 2024. The allotment of shares was finalised on December 10, and the shares are expected to be listed on the NSE SME platform on December 12.

Subscription Status

• The IPO was heavily oversubscribed, receiving bids for 1.81 billion shares against the 3.42 million shares on offer, representing a subscription rate of 530.59 times.
• The retail investor category was subscribed 558.11 times, the qualified institutional buyer (QIB) category 195.95 times, and the non-institutional investor (NII) category 912.18 times.

Utilisation of IPO Proceeds

The Company proposes to utilize the funds which are being raised towards funding the following objects:

1. To meet the Capital Expenditure
2. To meet General Corporate Purposes

Emerald Tyre Overview

• Incorporation and Business: Established in 2002, Emerald Tyre Manufacturers is a leading company in the tyre industry, operating under the brand name "GRECKSTER". They specialize in manufacturing, supplying, and servicing a wide range of tyres, including solid resilient tyres, press bands, industrial pneumatic tyres, butyl tubes & laps, and wheel rims.
• Global Presence: The company has a strong international presence, exporting its products to markets like the USA, Europe, and the Middle East. To streamline its distribution network, Emerald Tyre Manufacturers has established warehouses in Belgium, the UAE, and the USA.

Financial Highlights

• Revenue Growth: The company has experienced significant revenue growth, with revenue increasing from 16,798.10 lakh in 2023 to ₹17,196.84 lakh in 2024. The revenue increased by approximately 2.37% from 2023 to 2024.
• Profitability: Profit after tax (PAT) surged by 37.04% between FY2023 and FY2024, indicating strong profitability.

Key Performance Indicators

Disclaimer: Investing in SME IPOs involves a high degree of risk. Such investments may be suitable only for investors with a high-risk tolerance and the ability to bear potential losses. Perform thorough due diligence and consult a financial advisor before investing. Invest wisely and at your own discretion.