Emerald Tyre Manufacturers IPO: Price, Date, GMP and More

Emerald Tyre Manufacturers IPO-Complete Overview

Emerald Tyre Manufacturers IPO under the SME IPO category is a book-built issue of Rs.49.26 crore by Emerald Tyre Manufacturers Limited, incorporated in 2002. The company manufactures, supplies, and services consist of a wide range of tyres. The products are under the brand name of GRECKSTER.

The company's products are Solid Resilient Tyres, Press Bands, Industrial Pneumatic Tyres Butyl Tubes & Flaps, and Wheel Rims.

The company has exported its products to global markets such as the USA, UAE, Russia, and major European countries like Belgium, Germany, Netherlands, Hungry, Portugal, Italy, Denmark, and Poland in addition to the UK. The company has warehouses in Belgium, UAE, and the USA to give timely delivery of products along with value-added services to customers based in Europe, the Middle East, and now in North America.

 

Emerald Tyre Manufacturers IPO Overview

This Emerald Tyre Manufacturers IPO date is 05 December 2024, and its ‘initial public offering’ will end on 09 December 2024. 

The Rs.49.26 crore new SME IPO comprises a combination of fresh issues of 49.86 lac Shares (Rs.47.37 Cr) and an offer for sale (OFS) of 1.99 lac Shares (Rs.1.89 Cr). 

This upcoming IPO date is from December 05 to December 09, 2024. Emerald Tyre Manufacturers IPO Price is Rs.90 to Rs.95 for each Share. 

The expected IPO listing date is Thursday, 12 December 2024, and listing at NSE and SME.

To open a demat account and apply for the IPO, Click Here.

Company Financial

The company’s revenue grew by 2.37% and PAT increased by 36% during FYs ending 31 March 2024 and 31 March 2023.

(Amount in Lac)

 

Revenue Bifurcation

The revenue bifurcation for various activities is shown below:

(Amount in lac)

 

Product-wise Revenue Breakdown  

(Amount in lac)

 

Geography-wise Revenue Breakdown  

(Amount in lac)

 

State-wise Revenue Breakdown 

(Amount in lac)

The Objective of the Issue

The company desires to use the Net Proceeds from the Issue to fulfill its following goals:

• To cover offer costs.

• Working capital requirements.

• General corporate purposes.

 

Peers of Emerald Tyre Manufacturers Ltd.

 

Note:-

The basic EPS of the peers is for the financial year ended on 31 March 2024.

 

Evaluation

The Emerald Tyre IPO price is Rs.90 to Rs.95 for each Share.

Evaluation of P/E Ratio

Considering the FY ended 31 Mar 2024 with an EPS of Rs.8.64 from the last year, the resulting P/E ratio is 11x.

Considering the weighted EPS of Rs.7.22 for the last three years, the P/E ratio is 13.15x.

Comparative Analysis With Listed Peers

The average P/E Ratio of the industry is 29.08x.

 

In simple words, the P/E ratio of this IPO (11x), compared with the industry’s average P/E of 29.08x, has an undervaluation (on a P/E ratio basis only). Hence the price of the Share seems fully priced for the investors when considered based on the average P/E ratio of the industry.

 

IPO's Strengths 

• The management team is experienced and dedicated.

• Manufacturing Facility to cater to all kinds of Highway Tyres.

• Wide product range and customized product offerings.

• Broad customer base.

• Products are qualitative.
  
  

IPO’s Weaknesses

• Sector dependency: A large portion of the income of this company comes from the tyre industry. Any recession in the said industry would greatly affect its financial performance.

• Export dependency: The huge proportion of the business that depends on export exposure actually subjects the company to global economic fluctuations and trade regulations.

• Competition: The tyre manufacturing industry is proven to be competitive among the existing major players as well as new entries.

• Raw material prices: The performance of the company is sensitive to fluctuations in raw material prices depending on market dynamics.

• Geographic concentration: The company is well engaged in the international markets while depending on a few key regions exposing it to the risk of localised risks.

 

Emerald Tyre Manufacturers IPO GMP

Emerald Tyre Manufacturers IPO GMP today is Rs.22 as of 02 December 2024. With a price of Rs.95 per Share, the expected Emerald Tyre Manufacturers IPO listing price is Rs.117 when writing this information.

IPO Timetable (Tentative)

The IPO opening date is from December 05 to December 09, 2024, with allotment on December 10, refund initiation on December 10, and listing on December 12, 2024.

 

Emerald Tyre Manufacturers IPO Details 

The IPO with a Face Value of Rs.10 per share offers a total issue size of 5,185,200 Shares (Rs.49.26 Cr).

Emerald Tyre Manufacturers IPO Lot Details 

The IPO allows retail investors to invest in a minimum and maximum of 1 Lot (1200 Shares) amounting to Rs.1,14,000 and in multiples thereof, while for HNI investors, the minimum Lot is 2 (2400 Shares) amounting to Rs.2,28,000.

 

IPO Reservation (% of Net Issue)

 

Promoters And Management of Emerald Tyre Manufacturers Ltd.

• Chandhrasekharan Trirupathi Venkatachalam.
  
  

 

IPO Lead Managers

• GYR Capital Advisors Private Limited.
  
  

Dividend Policy

The company has not paid dividends in the last three FYs.

 

Conclusion

Emerald Tyre Manufacturers IPO comprises a well-balanced combination of issuing fresh shares and an offer for sales at a price band of Rs.90-95. The company's growth strategy is followed by swift increases in exports and revenue with an expected risk due to market competition and raw material price fluctuations. At a P/E ratio of 11x, it stands out as a low-valued company within a peer industry. For an investor, this IPO can be appealing for diversification as it has a worldwide reach and has established a market presence.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

To Read the Prospectus of the Company Click Here to Download the DRHP

 

DISCLAIMER: NOT a buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always discuss with an eligible financial advisor before investing.

Click Here to stay updated with the Upcoming IPOs.

 

Want to start Your Journey in stock market trading and investment? Join our Stock Market Class to become a beginner to expert trader! We cover everything from the basics of trading to advanced strategies for picking stocks. Plus, we're offering a special discount for women and students. Don't miss out - enroll now and kickstart your path to success in the stock market!Open a world of Stock Market by Opening a Demat Account with your favorite Broking firm & Get a trading Strategy worth Rs.15,000!

Click here to open a Free Demat Account.

Thank You for reading this blog.Hope you loved the IPO analysis. Please Comment Below with your feedback because Your feedback motivates us to deliver more such content.

Follow MUKUL AGRAWAL for the latest IPO news and reviews. You can connect with us on social media platforms like Twitter, Facebook, and Instagram. You can also subscribe to our YouTube Channel for the latest videos of the stock.