Emerald Tyre Manufacturers Limited, a prominent player in the off-highway tire manufacturing industry, is all set to launch its Initial Public Offering (IPO) on December 5, 2024, with a price band of ₹90 – ₹95 per share and an issue size of ₹49.26 crore. Emerald Tyre IPO GMP is at ₹60, signaling strong investor interest and the potential for 63% listing gains. Open for subscription until December 9, 2024, this NSE SME listing offers a compelling opportunity for retail investors, with a 35% allocation and a market lot size of 1,200 shares.
Emerald Tyre IPO GMP
Emerald Tyre Manufacturers
Founded in 2002, Emerald Tyre Manufacturers has carved a niche in producing specialized tires for material handling equipment, such as forklifts, port trailers, and mining machinery. The company operates a production facility spanning 10.05 acres in Tamil Nadu with an annual capacity of 7,040 metric tons. Emerald exports its products to key international markets, including the USA, UAE, Russia, and Europe, and maintains warehouses in Belgium, UAE, and USA for timely delivery.
The company has shown consistent growth in both revenue and profit margins, reflecting improved operational efficiency and market demand.
Investment Highlights
Strong Market Position
Emerald Tyre commands a significant presence in the off-highway tire market, offering products under its established GRECKSTER brand.
Diverse Product Portfolio
From industrial pneumatic tires to solid resilient tires and press bands, Emerald serves various industries, including agriculture, construction, and logistics.
Expanding Global Reach
With exports to over 20 countries and established warehousing infrastructure abroad, Emerald Tyre demonstrates robust international operations.
Attractive Valuations
The IPO’s price-to-earnings (P/E) ratio stands at 11.25 (pre-IPO) and 15.12 (post-IPO), offering a competitive valuation in the sector.
Risk Factors to Consider
- Dependence on Export Markets: Fluctuations in global trade policies could impact revenues.
- Competitive Industry: The company faces stiff competition from larger tire manufacturers.
- SME Listing: As an NSE SME IPO, liquidity might be lower compared to mainboard listings.
How to Apply for the IPO
Investors can apply via ASBA or online platforms provided by brokers like Zerodha and Upstox. Ensure all forms are submitted before the subscription closes on December 9, 2024.
Conclusion
Emerald Tyre Manufacturers IPO offers a balanced mix of growth potential and attractive valuations. While the company’s strong international presence and robust financial performance make it a compelling choice, investors should consider the associated risks and consult financial advisors before making an investment decision.