Emerald Tyre Manufacturers Ltd., a prominent player in the material handling tyre manufacturing industry, is all set to launch its Initial Public Offering (IPO) on December 5, 2024. This post provides a detailed breakdown of the Emerald Tyre Manufacturers IPO, its key features, financials, and the opportunity it presents to potential investors.
Emerald Tyre Manufacturers IPO Overview
- IPO Open Date: December 5, 2024
- IPO Close Date: December 9, 2024
- Price Range: ₹90 to ₹95 per share
- Lot Size: 1,200 shares
- Total Issue Size: ₹49.26 Cr
- Listing Date: December 12, 2024
- Face Value: ₹10 per share
- Listing At: NSE SME
- Issue Type: Book Built Issue IPO
Emerald Tyre Manufacturers is a well-established company that designs, manufactures, and supplies tyres for a range of material handling equipment. These tyres are used in machinery such as forklifts, skid loaders, mining machinery, agricultural implements, and more. The company also offers maintenance and service support for these products, enhancing their longevity and reliability.
Also Read: Emerald Tyre Manufacturers IPO Review: A Comprehensive Analysis
About Emerald Tyre Manufacturers
Founded in 2002, Emerald Tyre Manufacturers Ltd has built a strong reputation in the material handling tyre sector. The company specializes in tyres for heavy-duty applications, serving industries such as construction, mining, agriculture, and logistics. With a focus on quality and innovation, Emerald Tyre has secured a solid position in the tyre manufacturing market. The company’s expertise extends to manufacturing tyres for various machines, including:
- Forklifts
- Skid Loaders
- Airport Ground Support Vehicles
- Port Trailers
- Agricultural Implements
- Mining Machinery
- Aerial Work Platforms
- Backhoe Loaders
The company is headed by Mr. Chandhrasekharan Thirupathi Venkatachalam, the Managing Director, and is poised to make a significant impact on the stock market with its upcoming IPO.
Financial Overview of Emerald Tyre Manufacturers
Emerald Tyre Manufacturers has shown consistent growth in terms of revenue, profit, and asset expansion. Here’s a quick look at the financials:
Revenue
- 2022: ₹134 Cr
- 2023: ₹164 Cr
- 2024: ₹171 Cr
Total Assets
- 2022: ₹136 Cr
- 2023: ₹150 Cr
- 2024: ₹174 Cr
Profit
- 2022: ₹4.85 Cr
- 2023: ₹8.93 Cr
- 2024: ₹12.23 Cr
The consistent increase in revenue and profit signals the company’s strong growth trajectory, making it an attractive option for investors looking for stable and reliable returns.
Emerald Tyre Manufacturers IPO Details
Key Information:
- 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 (aggregating up to ₹1.89 Cr)
- Market Maker Portion: 300,000 shares
Application Process
The Emerald Tyre Manufacturers IPO allows investors to bid for a minimum of 1,200 shares. Here’s a look at the investment requirements for different categories of investors:
| Investor Category | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | ₹114,000 |
| Retail (Max) | 1 | 1,200 | ₹114,000 |
| HNI (Min) | 2 | 2,400 | ₹228,000 |
Investors can apply for the IPO through ASBA (Application Supported by Blocked Amount) via their bank accounts, or they can also apply through brokers or trading accounts.
Key Performance Indicators
Emerald Tyre Manufacturers has maintained solid financials, and here are the key metrics as of March 31, 2024:
- ROCE (Return on Capital Employed): 15.84%
- Debt/Equity Ratio: 1.61
- RoNW (Return on Net Worth): 22.63%
- P/BV (Price to Book Value): 2.55
- PAT Margin: 7.16%
These metrics indicate strong profitability and capital efficiency, making the company an appealing option for potential investors.
Emerald Tyre Manufacturers IPO: Should You Invest?
With its established track record and consistent financial performance, Emerald Tyre Manufacturers IPO presents a promising investment opportunity, especially for investors seeking exposure to the tyre manufacturing and material handling sectors. The company’s strong market presence, solid growth in revenue and profit, and the expertise in manufacturing tyres for heavy-duty equipment enhance its growth potential.
However, investors should carefully consider their risk appetite, especially given the debt-equity ratio of 1.61, which may indicate a certain level of financial leverage. The IPO’s price band and market capitalization of ₹185.03 Cr suggest that it could be an interesting play for investors looking to participate in the burgeoning infrastructure and logistics sectors.
Emerald Tyre Manufacturers IPO Registrar
The Registrar for the IPO is Link Intime India Private Ltd. Investors can contact them for any queries regarding the IPO application process or allotment status.
- Phone: +91-22-4918 6270
- Email: emerald.ipo@linkintime.co.in
- Website: Link Intime IPO Status
Conclusion
Emerald Tyre Manufacturers’ IPO is a compelling opportunity for investors looking to invest in a growing sector with strong market fundamentals. With its solid financials, market expertise, and robust growth prospects, it could offer good returns in the long run. As always, it is advisable to conduct thorough research and consult with a financial advisor before making any investment decisions.
FAQs on Emerald Tyre Manufacturers IPO
What is the price range for Emerald Tyre Manufacturers IPO?
The price band for the Emerald Tyre Manufacturers IPO is ₹90 to ₹95 per share.
What is the lot size for the Emerald Tyre Manufacturers IPO?
The lot size is 1,200 shares.
How much do I need to invest to apply for the IPO?
The minimum investment is ₹114,000 for 1,200 shares.
When does the Emerald Tyre Manufacturers IPO open and close?
The IPO opens on December 5, 2024 and closes on December 9, 2024.
When will the IPO be listed?
The listing date for the Emerald Tyre Manufacturers IPO is December 12, 2024.
How can I apply for the Emerald Tyre Manufacturers IPO?
You can apply for the IPO through ASBA via your bank or trading account.
What is the market capitalization of Emerald Tyre Manufacturers IPO?
The market capitalization is ₹185.03 Cr.
Who is the registrar for this IPO?
The registrar is Link Intime India Private Ltd.