Emerald Tyre Manufacturers shares hit 5% upper circuit after listing at 90% premium on NSE SME; check details

Tyre maker Emerald Tyre Manufacturers Ltd made a robust market debut on Thursday, December 12, with its shares listing a premium of 90% on NSE SME platform, Emerge.

Shares of the company listed at ₹180.5 apiece on the NSE against the issue price of ₹95 apiece. The stock rallied 5% to hit the upper circuit limit at ₹189.5 apiece on the NSE soon after listing.

Over 10.69 lakh shares changed hands on the bourse in the first five minutes of trade. The trading turnover stood at ₹19.68 crore, and the company's market valuation stood at ₹369.08 crore.

At the listing price of ₹180.5, the value of a single lot of the company’s shares allotted to an IPO investor reached ₹2,16,600 (₹180.5 x 1,200). After the premium listing, the investors, who received at least a single lot in the IPO allotment, would have made gains of around ₹1,02,600 against the minimum investment of ₹1,14,000.

Emerald Tyre Manufacturers raises ₹49.26 cr crore through IPO

Tamil Nadu-based off-the-highway tyre manufacturer Emerald Tyre Manufacturers raised ₹49.26 crore through its initial public offering (IPO), which was open for subscription from December 5 to December 9.

The IPO received a robust response from retail and non-retail investors, as the issue was booked 531 times at the close of bidding on Monday.

According to exchange data, investors placed bids for 181.78 crore shares against 34.21 lakh shares on offer for subscription.

The Qualified Institutional Buyers (QIB) placed bids for 19.14 crore shares compared to 9.76 lakh shares set aside for them. The QIB portion was subscribed 196 times. The Non-Institutional Investors (NIIs) applied for 66.94 crore shares compared to 7.33 lakh shares on offer. The NII portion was subscribed 913 times. Retail Individual Investors (RIIs) placed applications for 95.7 crore shares compared to 17.11 lakh shares on offer to them. The RII portion was subscribed 559 times.

Earlier, the company raised ₹13.91 crore from anchor investors. It allotted 1,464,000 shares to five funds at ₹95 per share.

The ₹49.26-crore IPO of Emerald Tyre Manufacturers consisted of a fresh issue of 49.86 lakh shares and an OFS of 1.99 lakh shares. Non-promoters S Vijayalakshmi and Karthikeyan offloaded shares through the OFS route.

GYR Capital Advisors Pvt Ltd was the lead book-running manager. Link Intime India was the IPO registrar. The company has proposed to utilise IPO funds mainly to meet capital expenditure requirements.

Emerald Tyre Manufacturers produces off-the-highway tyres. These tyres are used in material handling applications like port trailers, forklifts, airport ground support equipment, skid loaders, lawn and garden mowers, backhoe loaders and mining equipment, agri implements, and aerial work platform trucks.

The company has a manufacturing unit with a production capacity of 10560 megatonnes (MT) of tyres, tubes and wheels.