Emerald Tyre Manufacturers Limited is coming up with an IPO consisting of a fresh issue of 49,86,000 shares worth INR 47.37 crores and an offer to sell 1,99,200 existing shares worth INR 1.89 crores. The company aims to meet the capital expenditure and general corporate purposes. 

Emerald Tyre Manufacturers IPO – Important Dates 

Read more about Emerald Tyre Manufacturers Limited IPO GMP

Emerald Tyre Manufacturers Limited IPO – Company Profile 

Emerald Tyre Manufacturers Limited, incorporated in 2002, has over two decades of global and domestic market presence. It is renowned for its high-quality products under the brand name “GRECKSTER,” symbolizing trust and excellence worldwide. 

They manufacture, supply, and service an extensive range of tyres for diverse material handling applications, including forklifts, mining equipment, airport ground support, agricultural implements, aerial work platform trucks, lawnmowers, and backhoe loaders. 

With a strong position in the off-highway tyre industry, their 10.05-acre Gummudipoondi facility in Tamil Nadu boasts a 10,560 MT capacity, producing diverse tyres, tubes, and wheels tailored to market needs. 

Emerald Tyre Manufacturers Ltd IPO Fundamental Analysis 

Emerald Tyre Manufacturers Limited’s financial analysis reveals a mixed performance. Revenue has grown steadily, though profitability, EPS, and RoNW have declined. Improved inventory turnover and increased assets indicate growth but reduced liquidity, and PAT may concern investors. 

• 1Revenue Trend: The revenue increased from ₹13,364.26 lakhs in March 2022 to ₹16,393.95 lakhs in March 2023. The revenue for the current year’s 4-month period ending July 2024 is INR 6,380.33 lakh. 
• Equity and Liabilities: Both equities and liabilities have shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing. 
• Profitability: The profit after tax (PAT) has significantly decreased from ₹484.62 lakh in March 2022 to ₹413.64 lakh by July 2024. This decline in profitability could be a source of concern among investors. 

• 4. Earnings per Share (EPS): The diluted EPS has reduced from ₹3.79 in March 2022 to ₹2.85 by July 2024, reflecting lower earnings per share for investors. 
• 5. Return on Net Worth (RoNW): The RoNW has decreased from 16.73% to 7.11%, indicating a decrease in the company’s ability to generate returns on shareholder equity. 
• Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has decreased, indicating weakening liquidity and potential challenges in meeting short-term obligations. 
• Inventory Turnover Ratio: There’s a significant increase in the Inventory Turnover   Ratio, which might suggest faster sales or efficient inventory management. 

Check out the other upcoming IPOs this month:

Emerald Tyre Manufacturers IPO Financial Analysis 

Emerald Tyre Manufacturers Limited IPO Peer Comparison 

Emerald Tyre Manufacturers Limited, while smaller in scale compared to Balkrishna Industries and TVS Srichakra, showcases promising growth potential with competitive performance, positioning itself as a rising player in the tyre manufacturing sector. 

Emerald Tyre Manufacturers Ltd IPO Objective 

The main objective of Emerald Tyre Manufacturers Limited is to meet working capital requirements. 

1. Funding the Capital Expenditure: The company intends to utilize INR 36.33 crores from net proceeds for capital expenditure, including plants for solid and pneumatic tyres, enhancing tube production, expanding storage office facilities, and promoting eco-friendly initiatives. 

2. General Corporate Purpose: The company will deploy funds for general corporate purposes, including strategic initiatives, marketing network enhancement, brand building, operational strengthening, investments, addressing exigencies, and covering salaries and other operational expenses. 

Emerald Tyre Manufacturers IPO Risks And Challenges 

Emerald Tyre Manufacturers Limited’s risk includes dependence on fluctuating raw material prices, reliance on a few significant clients and suppliers, and potential disruptions or unfavorable changes that could impact cash flow, operations, and financial stability. 

• The company’s operations rely heavily on raw materials like natural and synthetic rubber, which are affected by price fluctuations driven by weather, geopolitical issues, and supply-demand dynamics, posing potential risks to financial performance and cost efficiency. 

• Their business relies heavily on a few clients, with a significant portion of revenue from top clients. Any adverse developments, such as disputes or clients switching to competitors, could reduce cash flow. 

• Their business relies on a few critical suppliers for raw materials, with a significant portion of purchases from top suppliers. Any disruption or unfavourable changes in supply terms could impact operations and financial stability. 

Emerald Tyre Manufacturers Ltd IPO – Industry & Market Potential 

The global tyre market, valued at around USD 232 billion in 2023, is projected to grow at a CAGR of 4.11% from 2024 to 2029, driven by vehicle production growth, digital transformation, innovative tyre technologies, and the rise of electric vehicles. 

The India Tyre Market is projected to grow at a CAGR of 8.71% from 2023 to 2030, reaching USD 25.50 billion by FY2031, driven by rising vehicle demand, government initiatives, and improved road infrastructure. 

Technological advancements in the tyre market, such as rimless tyres, green tyres, lightweight materials, and nanotechnology, drive innovation. Companies like Bridgestone use advanced technologies like CAIS to enhance tyre performance and boost market growth. 

Emerald Tyre Manufacturers Limited IPO – Type of Offer 

Emerald Tyre Manufacturers Limited plans a fresh issue of 49,86,000 shares, worth INR 47.37 crores, to meet the capital expenditure and general corporate purposes. Additionally, the company proposes an offer to sell 1,99,200 existing shares worth INR 1.89 crores. 

1. Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 47.37 crores. The company intends to utilize the proceeds from the fresh issue to meet the capital expenditure and general corporate purposes. 
2. Offer for sale: Emerald Tyre Manufacturers Limited is offering to sell 1,99,200 existing shares. 

Emerald Tyre Manufacturers IPO Offer Size 

The offer size of Emerald Tyre Manufacturers Limited is INR 49.26 crores, consisting of a fresh issue of 49,86,000 shares worth INR 47.37 crores and an offer to sell 1,99,200 existing shares worth INR 1.89 crores. The company aims to meet the capital expenditure and general corporate purposes. 

Emerald Tyre Manufacturers Limited IPO Allotment Structure 

Emerald Tyre Manufacturers Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII), according to SEBI regulations. 300,000 shares are reserved for market makers. 

● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 300,000 shares, are reserved for market makers. 

How to apply for Emerald Tyre Manufacturers IPO?

To apply for the Emerald Tyre Manufacturers Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Emerald Tyre Manufacturers Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Emerald Tyre Manufacturers Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about Emerald Tyre Manufacturers IPO Day 1 Subscription Status

How do you check Emerald Tyre Manufacturers IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Emerald Tyre Manufacturers Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Emerald Tyre Manufacturers Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

 If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

 Apart from Alice Blue, there are other ways to check the allotment status of the Emerald Tyre Manufacturers Limited IPO:

● Registrar’s Website: Visit the website of Link Intime India Private Limited, the registrar of the Emerald Tyre Manufacturers Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status. 

● NSE SME: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about Emerald Tyre Manufacturers IPO Day 2 Subscription Status

Emerald Tyre Manufacturers Ltd IPO Offer Registrar

The registrar for the Emerald Tyre Manufacturers Limited IPO is Link Intime India Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Link Intime India Private Limited

C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Marg, Vikhroli (West), Mumbai 400 083

Maharashtra, India

Telephone: +091 8108114949

E-mail id: [email protected]

Website: www.linkintime.co.in 

Emerald Tyre Manufacturers IPO – FAQs 

1. What is the allotment date of the Emerald Tyre Manufacturers IPO? 

The allotment date of the Emerald Tyre Manufacturers is December 10, 2024. 

2. What is the price band of the Emerald Tyre Manufacturers IPO? 

The price band of the issue is INR 90-95 per share. 

3. What is the size of the Emerald Tyre Manufacturers IPO? 

The offer size of Emerald Tyre Manufacturers Limited is INR 49.26 crores, consisting of a fresh issue of 49,86,000 shares worth INR 47.37 crores and an offer to sell 1,99,200 existing shares worth INR 1.89 crores. The company aims to meet the capital expenditure and general corporate purposes. 

4. What is the listing date of the Emerald Tyre Manufacturers IPO? 

The listing date of the Emerald Tyre Manufacturers is December 12, 2024. 

5. Where is the Emerald Tyre Manufacturers IPO Getting Listed? 

Emerald Tyre Manufacturers is getting listed on the National Stock Exchange (NSE) and Small Medium Exchange (SME). 

6. What are the open and close dates of the Emerald Tyre Manufacturers IPO? 

The open and close dates of the Emerald Tyre Manufacturers are December 5, 2024, and December 9, 2024, respectively. 

7. How to apply for Emerald Tyre Manufacturers Ltd IPO in Alice Blue? 

To apply for the Emerald Tyre Manufacturers Limited IPO through Alice Blue, open a Demat and Trading account, check IPO details, place your bid within the price band, submit the application, and check allotment status post-process. Allotment depends on demand. 

8. Who is the Book Runner for the Emerald Tyre Manufacturers IPO? 

The Book Runner for the Emerald Tyre Manufacturers is GYR Capital Advisors Private Limited.