Emerald Tyre Manufacturers IPO closes with bumper subscription, issue booked over 530 times led by NIIs

The initial public offering of Emerald Tyre Manufacturers closed with a bumper subscription on the last day of bidding on Monday, December 9, led by the retail and Non-institutional Investors (NIIs).

The NSE SME issue was subscribed 530.67 times with applications for more than 181.55 crore shares against 34.21 lakh shares on offer.

The IPO was open for bidding from December 5 to December 9.

Here’s a look at the Emerald Tyre Manufacturers IPO subscription status and other key details as the bidding process comes to an end.

Emerald Tyre Manufacturers IPO subscription status

The NIIs showed the highest demand by subscribing their category 912.58 times. The NIIs placed bids for more than 66.91 crore shares compared to more than 7.33 lakh shares on offer. The retail portion of the IPO was booked 558.11 times, with bids for over 95.5 crore shares against 17.11 lakh shares on offer. The Qualified Institutional Buyers (QIBs) submitted bids for more than 19.14 crore shares against 9.76 lakh shares on offer, leading to a subscription of 195.95 times in the category.

Emerald Tyre Manufacturers IPO details

The Emerald Tyre Manufacturers IPO is a book-building issue aimed at raising ₹49.26 crore. The initial public offering was a combination of a fresh issue of 49.86 lakh shares and an offer-for-sale (OFS) portion of 1.99 lakh shares.

The IPO price band was set between ₹90 and ₹95 per share. The minimum investment for retail investors was ₹1,14,000 per application for a single lot size of 1,200 shares. For the high-net-worth individuals (HNIs), the minimum investment was set at two lots, or 2,400 shares, amounting to ₹2,28,000.

Link Intime India Private Ltd is the registrar for the IPO, while GYR Capital Advisors Private Limited is the book running lead manager. Giriraj Stock Broking is in the role of the market-maker.

Chandhrasekharan Trirupathi Venkatachalam is the promoter of the company. Prior to the issue, he held a 67.62% stake in the company. The post-issue shareholding structure has not yet been disclosed by the company.

Emerald Tyre Manufacturers IPO listing date

After the subscription, Emerald Tyre Manufacturers Limited is expected to finalise the IPO share allotment status on December 10. The non-allottees will also receive refunds on the same day. The company will transfer shares to the Demat accounts of the successful bidders on December 11.

Shares of Emerald Tyre Manufacturers Limited are scheduled to be listed on the NSE SME platform, Emerge, on December 12.

About Emerald Tyre Manufacturers and use of IPO proceeds

The company has proposed to utilise the funds raised through the public offer for capital expenditure, general corporate needs and covering the costs associated with the IPO.

Established in 2002, Emerald Tyre Manufacturers Limited is a manufacturer and supplier of a range of tyres sold under the Greckster brand. The company exports its products to multiple international markets, such as the United States, the United Arab Emirates (UAE) and Russia. The company also exports its products to several European countries, including Belgium, Germany, the Netherlands, Hungary, Portugal, Italy, Denmark, Poland and the United Kingdom.

The company has warehouses in Belgium, the UAE and the US to support product distribution and service delivery in Europe, the Middle East and North America.