Fri Dec 06 00:04:22 UTC 2024: **Emerald Tyre Manufacturers IPO Oversubscribed 43.6 Times on Day One**
MUMBAI, INDIA – December 5, 2024 – Emerald Tyre Manufacturers Limited (ETML), a leading tyre manufacturer, saw its Initial Public Offering (IPO) massively oversubscribed on its first day of trading. The IPO, which opened on Thursday and closes on December 9th, received subscriptions exceeding 43.6 times its size by 5:00 PM.
The IPO offers shares at a price band of ₹90 to ₹95, with a face value of ₹10. The company is raising ₹49.26 crores through a combination of fresh issuance and offer for sale. The fresh issue comprises 49.86 lakh shares for ₹47.37 crores, while the offer for sale includes 1.99 lakh shares totaling ₹1.89 crores.
ETML, established in 2002, manufactures, supplies, and services a diverse range of tires, including off-highway tire and wheel services. The company boasts a strong financial track record, with revenue increasing steadily over the past three years, reaching ₹171.97 crores in 2024, up from ₹167.98 crores in 2023. Profit After Tax (PAT) also saw a significant rise of 37.04% between FY23 and FY24. ETML exports its products globally, including to the UAE, Russia, USA, and several European countries.
The grey market premium (GMP) for the IPO stood at ₹75 on Thursday, suggesting a potential market price of ₹170, significantly higher than the issue price. This strong early interest reflects investor confidence in ETML’s growth prospects.
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