Emerald Tyre Manufacturers is launching its IPO, which will open for subscription on December 5, 2024, and close on December 9, 2024. The final allotment of shares is expected to be completed by December 10, 2024, and the company is set to list on NSE SME on December 12, 2024. The total issue size for the IPO is Rs 49.26 crores, consisting of a fresh issue of 49.86 lakh shares worth Rs 47.37 crores, along with an offer for sale of 1.99 lakh shares amounting to Rs 1.89 crores. The price range for the IPO has been set between ₹90 and ₹95 per share. Retail investors can apply for a minimum of 1,200 shares, requiring an investment of ₹114,000, while high-net-worth individuals (HNIs).
Emerald Tyre Manufacturers IPO Details
| IPO Date | December 5, 2024 to December 9, 2024 |
| Listing Date | December 12, 2024 (tentative) |
| Face Value | ₹10 per share |
| Price Band | ₹90 to ₹95 per share |
| Lot Size | 1,200 Shares |
| Total Issue Size | 5,185,200 shares (aggregating up to ₹49.26 Cr) |
| Fresh Issue | 4,986,000 shares (aggregating up to ₹47.37 Cr) |
| Offer for Sale | 199,200 shares of ₹10 (aggregating up to ₹1.89 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | NSE SME |
| Pre-Issue Shareholding | 14,490,512 shares |
| Post-Issue Shareholding | 19,476,512 shares |
| Market Maker Portion | 300,000 shares |
Emerald Tyre Manufacturers IPO Dates
| Event | Date | Details |
|---|---|---|
| IPO Open Date | Thursday, December 5, 2024 | The IPO will open for subscription from 10 AM. |
| IPO Close Date | Monday, December 9, 2024 | The IPO will close for subscription by 5 PM on this date. |
| Basis of Allotment | Tuesday, December 10, 2024 | Allotment of shares to applicants will be finalized and communicated. |
| Initiation of Refunds | Tuesday, December 10, 2024 | Refunds will be initiated for unallotted applicants. |
| Credit of Shares to Demat | Wednesday, December 11, 2024 | Shares will be credited to the demat accounts of the successful applicants. |
| Listing Date | Thursday, December 12, 2024 | The IPO shares will be listed on NSE SME and start trading on this date. |
| Cut-off time for UPI Mandate Confirmation | 5 PM on Monday, December 9, 2024 | Investors applying through UPI must confirm their mandate by this time to complete the payment process. |
Emerald Tyre Manufacturers IPO Lot Size
Investors can apply for a minimum of 1,200 shares, with further applications accepted in multiples of 1,200 shares. The following table provides a breakdown of the minimum and maximum investment amounts for both retail investors and High Net-Worth Individuals (HNIs):
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | ₹114,000 |
| Retail (Max) | 1 | 1,200 | ₹114,000 |
| HNI (Min) | 2 | 2,400 | ₹228,000 |
Emerald Tyre Manufacturers IPO Subscription
Emerald Tyre Manufacturers’ IPO, which aims to raise Rs 49.26 crore by offering 51.85 lakh equity shares at a price band of Rs 90-95 per share, saw strong demand on its first day of bidding, December 5. The issue recorded a 39.53 times subscription, with retail investors leading the charge, subscribing 67.4 times their allotted portion, and non-institutional investors bidding 42.7 times. However, the portion reserved for qualified institutional buyers received a subdued response, subscribing only 0.52 times.
Explanation:
- Retail Investors (Min): Retail investors can apply for a minimum of 1 lot, which is 1,200 shares, with a total investment of ₹114,000.
- Retail Investors (Max): Since the minimum lot size is 1,200 shares, the maximum investment for retail investors is also ₹114,000 (1 lot).
- HNI (Min): High Net-Worth Individuals (HNIs) need to apply for a minimum of 2 lots, or 2,400 shares, requiring an investment of ₹228,000.
Emerald Tyre Manufacturers IPO Promoter Holding
| Promoter | Shareholding Pre-Issue | Shareholding Post-Issue |
|---|---|---|
| Chandhrasekharan Trirupathi Venkatachalam | 67.62% | [To be updated post-issue] |
Explanation:
- Pre-Issue Shareholding: The promoter, Chandhrasekharan Trirupathi Venkatachalam, holds 67.62% of the company’s shares before the IPO.
- Post-Issue Shareholding: The exact post-issue holding percentage will be updated after the IPO process is completed and shares are allotted.
Emerald Tyre Manufacturers IPO Valuation – FY2024
Here is the table displaying the key financial ratios and metrics for Emerald Tyre Manufacturers IPO:
| KPI | Values |
|---|---|
| ROE (Return on Equity) | -% |
| ROCE (Return on Capital Employed) | 15.84% |
| EBITDA Margin | 17.28% |
| PAT Margin | 7.16% |
| Debt to Equity Ratio | 1.61 |
| Earnings Per Share (EPS) | ₹8.71 (Basic) |
| Price/Earnings (P/E) Ratio | N/A |
| Return on Net Worth (RoNW) | 22.63% |
| Net Asset Value (NAV) | ₹37.31 |
Explanation:
- ROE: The Return on Equity is not provided in percentage terms, suggesting that it may be unavailable or not applicable.
- ROCE: The Return on Capital Employed stands at 15.84%, indicating efficient use of capital.
- EBITDA Margin: The company has an EBITDA margin of 17.28%, reflecting profitability before interest, tax, depreciation, and amortization.
- PAT Margin: With a PAT margin of 7.16%, Emerald Tyre Manufacturers generates a profit after tax of 7.16% from its revenue.
- Debt to Equity Ratio: The debt to equity ratio of 1.61 suggests the company has relatively higher debt compared to equity, indicating potential financial risk.
- Earnings Per Share (EPS): The basic EPS stands at ₹8.71, showing the company’s earnings per share.
- P/E Ratio: The Price/Earnings ratio is not available, likely because the company has not yet been listed or the data is not applicable for pre-IPO evaluations.
- RoNW: A strong Return on Net Worth of 22.63% indicates the company’s ability to generate profits relative to its net worth.
- NAV: The Net Asset Value per share is ₹37.31, representing the book value of each share.
Emerald tyre Manufacturers IPO Peer Comparison
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|---|
| Emerald Tyre Manufacturers Ltd. | ₹8.44 | ₹8.44 | ₹11.25 | 22.63 | 2.55 | |
| Balkrishna Industries Ltd. | ₹76.12 | ₹76.12 | ₹457.99 | 30.44 | 16.62 | |
| TVS Srichakra Ltd. | ₹140.98 | ₹140.98 | ₹1,451.87 | 27.72 | 9.69 |
This table compares the key financial metrics of Emerald Tyre Manufacturers Limited with its peers, including EPS (Basic and Diluted), NAV per share, P/E ratio, RoNW, and P/BV ratio, as of March 31, 2024.
Objects of the Issue
To Meet Capital Expenditure: A portion of the proceeds will be used to fund the company’s capital expenditures. This may include the purchase of new machinery, technology upgrades, or expansion of existing facilities, which will help enhance production capacity and operational efficiency.
To Meet General Corporate Purposes: The company intends to use a part of the funds for general corporate purposes. This typically covers various business needs, including working capital requirements, administrative expenses, and other operational needs to support the company’s growth and day-to-day operations.
To Meet Offer Expenses: A portion of the funds will also be allocated to cover the expenses incurred during the IPO process. This includes costs related to legal, underwriting, and marketing fees, as well as other expenses necessary to bring the issue to the market.
About Company
Emerald Tyre Manufacturers, established in 2002, specializes in manufacturing and supplying a wide range of tyres under the brand name “GRECKSTER.” The company offers products like Solid Resilient Tyres, Industrial Pneumatic Tyres, Butyl Tubes, Flaps, and Wheel Rims.
Its products are exported to global markets, including the USA, UAE, Russia, and several European countries. With warehouses in Belgium, UAE, and the USA, the company ensures timely delivery and value-added services. As of March 31, 2024, Emerald Tyre Manufacturers employed 224 permanent and 191 contractual staff.
Emerald Tyre Manufacturers IPO Registrar
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
Company Address
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/about-emerald/
Conclusion
Emerald Tyre Manufacturers IPO offers an opportunity to invest in a company focused on expanding its production capacity and enhancing operational efficiency. The IPO proceeds will be used for capital expenditures, corporate purposes, and offer expenses. With a solid financial profile, including a strong RoNW of 22.63% and a basic EPS of ₹8.44, the company is positioned for growth in the tyre industry. However, investors should carefully evaluate the financials and market conditions before making an investment decision, as with any IPO.
Emerald Tyre Manufacturers IPO FAQs
What is the issue size of Emerald Tyre Manufacturers IPO?
The IPO size is ₹49.26 crore, consisting of a fresh issue of ₹47.37 crore and an offer for sale of ₹1.89 crore.
When does the IPO open and close?
The IPO opens on December 5, 2024, and closes on December 9, 2024.
What is the price band for the IPO?
The price band is ₹90 to ₹95 per share.
What is the lot size for this IPO?
The minimum lot size is 1,200 shares, with a minimum investment of ₹114,000 for retail investors.
Who is the promoter of the company?
The promoter of Emerald Tyre Manufacturers is Chandhrasekharan Trirupathi Venkatachalam.
What is the tentative listing date?
The tentative listing date is December 12, 2024, on the NSE SME platform.
What will the funds be used for?
The funds will be used for capital expenditure, general corporate purposes, and to cover offer expenses.