Emerald Tyre SME IPO to open for subscription on Dec 5, price band fixed at Rs 90-95 per share

Emerald Tyre Manufacturers IPO

Tamil Nadu-based Emerald Tyre Manufacturers will open its Rs 49-crore initial share sale for subscription on December 5. This would be the second public issue from the SME segment hitting Dalal Street in December.

The price band for the offer, which closes on December 9, has been fixed at Rs 90-95 per share.

The 51.85 lakh shares IPO is a combination of fresh issue of 49.86 lakh shares worth Rs 47.4 crore and an offer-for-sale of 1.99 lakh shares worth Rs 1.89 crore at the upper price band. Non-promoters Karthikeyan Swarnam, and S Vijayalakshmi will be selling shares in the offer-for-sale.

Promoters hold 67.62 percent stake in the tyre maker, while 32.38 percent shares are owned by public shareholders, including Rajasthan Global Securities, which with 12.31 percent stake is the second largest shareholder in the company after promoter Chandhrasekharan Venkatachalam Thirupathi (47.42 percent stake).

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Incorporated in 2002, the Chandhrasekharan Venkatachalam Thirupathi-promoted company manufactures tyres for material handling applications like forklifts, skid loaders, ground support equipment of airports, port trailers, agri implements, lawn and garden mowers, mining equipment, aerial work platform trucks , and backhoe loaders, under the the brand name GRECKSTER.

It has an installed production capacity of 10,560 MT of tyres, tubes and wheels.

Emerald Tyre will spend Rs 36.3 crore out of fresh issue proceeds for its capital expenditure, and the remaining funds for general corporate purposes, and offer expenses.

On the financials front, the consolidated net profit in the year ended March 2024 increased to Rs 12.1 crore, up from Rs 8.9 crore in the previous year. Revenue during the year rose to Rs 170.98 crore, up from Rs 163.9 crore in the fiscal 2023.

The book running lead manager handling the public issue is GYR Capital Advisors, while Link Intime India is the registrar to the issue.