The Emerald Tyre Manufacturers IPO has taken the market by storm, with its subscription closing today, December 9, 2024. The IPO has witnessed an overwhelming response, being subscribed over 120 times, and its grey market premium (GMP) has surged by an impressive 79%. This strong demand highlights the confidence of investors in the company’s growth potential and its position as a leading tyre manufacturer.
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As the IPO subscription window comes to an end, here’s a detailed look at the Emerald Tyre Manufacturers IPO, its GMP, subscription status, allotment details, and more.
Grey Market Premium (GMP) Update
The unlisted shares of Emerald Tyre Manufacturers are trading at ₹170 per share in the grey market, which is ₹75 higher than the upper end of the IPO price band of ₹95 per share. This translates to a 78.95% premium, reflecting strong investor interest and positive sentiment around the company’s public offering.
The grey market premium is often seen as an indicator of how a stock might perform upon listing. With such a significant GMP, the Emerald Tyre Manufacturers IPO is expected to deliver substantial listing gains for investors.
Emerald Tyre Manufacturers IPO GMP: Key Details
The IPO comprises a fresh issue of up to 49,86,000 equity shares and an offer for sale (OFS) of up to 1,99,200 equity shares, aggregating to a total of 51,85,200 equity shares. Here are the key details:
- Price Band: ₹90–₹95 per share
- Lot Size: 1,200 shares
- Minimum Investment: ₹1,14,000 (for one lot of 1,200 shares)
- Anchor Investor Allocation: 14,64,000 equity shares
- Market Maker Reservation: 3,00,000 equity shares
The IPO is being managed by GYR Capital Advisors as the sole book-running lead manager, with Link Intime India serving as the registrar. Giriraj Stock Broking is also involved in the issue.
Subscription Status
The Emerald Tyre Manufacturers IPO opened for subscription on Thursday, December 5, 2024, and has received an overwhelming response from investors. As of 10:12 AM on the final day, the IPO has been subscribed over 120.23 times, according to data from the National Stock Exchange (NSE).
This includes strong participation from retail investors, high-net-worth individuals (HNIs), and institutional investors. Such a high subscription rate underscores the strong demand for the company’s shares and the confidence investors have in its business model and future prospects.
Allotment and Listing Dates
With the subscription window closing today, here are the important dates to keep in mind:
- Basis of Allotment Finalization: December 10, 2024
- Credit of Shares to Demat Accounts: December 11, 2024
- Listing Date: December 12, 2024
The shares of Emerald Tyre Manufacturers are expected to debut on the NSE SME platform, and given the strong GMP, investors are anticipating significant listing gains.
Objectives of the IPO
According to the company’s Red Herring Prospectus (RHP), the proceeds from the fresh issue will be utilized for the following purposes:
- Capital Expenditure: To expand production capacity and improve operational efficiency.
- General Corporate Purposes: To support the company’s overall growth and development.
- Offer-Related Expenses: To cover costs associated with the IPO process.
It’s important to note that the company will not receive any proceeds from the offer for sale (OFS), as these funds will go directly to the selling shareholders after deducting applicable taxes and expenses.
Emerald Tyre Manufacturers
Founded in 2002, Emerald Tyre Manufacturers is a leading producer and supplier of industrial tyres under the brand name GRECKSTER. The company’s product portfolio includes:
- Solid Resilient Tyres
- Press-On Bands
- Industrial Pneumatic Tyres
Emerald Tyre Manufacturers has a strong global presence, exporting its products to markets such as the USA, UAE, Russia, and several European countries. To ensure timely delivery, the company operates warehouses in Belgium, the UAE, and the USA.
With its robust product lineup and international reach, Emerald Tyre Manufacturers is well-positioned to capitalize on the growing demand for industrial tyres worldwide.
Final Thoughts
The Emerald Tyre Manufacturers IPO has garnered massive attention from investors, with a subscription rate of over 120 times and a soaring GMP of 79%. This overwhelming response reflects the market’s confidence in the company’s growth potential, strong fundamentals, and global presence.
As the IPO closes today, all eyes are now on the allotment and listing dates. With its robust business model, international reach, and plans for expansion, Emerald Tyre Manufacturers is poised to make a strong debut on the NSE SME platform. For investors, this IPO represents an exciting opportunity to be part of a growing industrial tyre manufacturer with a promising future.
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FAQs
1. What is the grey market premium (GMP) for the Emerald Tyre Manufacturers IPO?
The grey market premium (GMP) for the Emerald Tyre Manufacturers IPO is currently ₹75, which is 78.95% higher than the upper end of the IPO price band of ₹95. This indicates strong investor interest and suggests the potential for significant listing gains.
2. When will the shares of Emerald Tyre Manufacturers be listed on the stock exchange?
The shares of Emerald Tyre Manufacturers are expected to be listed on the NSE SME platform on Thursday, December 12, 2024. Investors can check their allotment status on December 10, 2024, and the shares will be credited to their demat accounts by December 11, 2024.
