Emerald Tyre Manufacturers, a Tamil Nadu-based SME, is gearing up to launch its ₹49-crore initial public offering (IPO) on December 5, 2024. The IPO, which will close on December 9, is the second from the SME segment hitting Dalal Street this month. The price band for the offer has been set at ₹90-95 per share.
The IPO consists of 51.85 lakh shares, including a fresh issue of 49.86 lakh shares worth ₹47.4 crore and an offer-for-sale (OFS) of 1.99 lakh shares worth ₹1.89 crore. Non-promoters Karthikeyan Swarnam and S Vijayalakshmi will offload their shares in the OFS. Currently, promoters hold a 67.62% stake in the company, while the remaining 32.38% is owned by public shareholders, including Rajasthan Global Securities, which holds a 12.31% stake.
Emerald Tyre has been set up in the year 2002, produces tyres for material handling equipment with the brand name GRECKSTER. Products cater to multiple applications pertaining to forklifts, skid loaders, airport ground support systems, agri implements, mining equipment. Annual production: 10,560 MT. Tyres : 4000 wheels. Tubes : 10000 nos. wheels : 2000 SETS.
The proceeds from the fresh issue would be utilised mainly for capital expenditure for ₹36.3 crore. The balance would be used for general corporate purposes and to meet IPO expenses.
On the financial front, the company has also posted remarkable growth. For the fiscal ending March 2024, Emerald Tyre declared a net profit of ₹12.1 crore over ₹8.9 crore in FY23. Even revenue grew to ₹170.98 crore against ₹163.9 crore recorded in the comparative period last year.
The IPO allows investors to invest in a niche player within the tyre manufacturing industry, which continues to show promising growth potential.
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Source: Moneycontrol
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