Thu Dec 05 15:18:49 UTC 2024: ## Emerald Tyre Manufacturers IPO Oversubscribed by 44 Times on Day One

**Chennai, India – December 6, 2024** – Emerald Tyre Manufacturers Ltd.’s initial public offering (IPO) witnessed an overwhelming response on its first day, becoming oversubscribed by a staggering 44.29 times. The Rs 49.26 crore (€5.6 million approx.) offering, comprising 51.85 lakh shares, saw particularly strong demand from retail and non-institutional investors.

The IPO, open until December 9th, includes a fresh issue of 49.86 lakh shares (Rs 47.37 crore) and an offer-for-sale (OFS) of 1.99 lakh shares (Rs 1.89 crore). The price band is set at Rs 90-95 per share, requiring a minimum investment of Rs 114,000 for retail investors (one lot of 1,200 shares).

Non-institutional investors alone subscribed 43.35 times the allotted shares, while Qualified Institutional Buyers (QIBs) subscribed at a significantly lower rate of 0.52 times. The allotment is expected on December 10th, with shares credited to successful applicants and refunds issued on December 11th. Listing on the NSE SME platform Emerge is anticipated on December 12th.

The grey market premium (GMP) currently stands at Rs 75, suggesting a potential listing price of Rs 170, a 78.95% premium over the issue price. However, investors are cautioned that GMP is speculative and not an official price indicator.

Emerald Tyre Manufacturers Ltd., established in 2002, manufactures tyres for various material handling applications, including forklifts and mining equipment. The company operates a 10-acre manufacturing facility in Tamil Nadu and reported a revenue of Rs 64.92 crore for the period ended July 31, 2024, and Rs 171 crore for FY2024. The company plans to use IPO proceeds for capital expenditure, general corporate purposes, and IPO expenses.

**Disclaimer:** Investing in IPOs involves market risk. Consult a financial advisor and thoroughly review the red herring prospectus before investing. Link Intime India Pvt. Ltd. is the registrar, GYR Capital Advisors Pvt. Ltd. is the book-running lead manager, and Giriraj Stock Broking is the market maker for the IPO.

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