Emerald Tyre Manufacturers IPO listing on Dec 12: Here's what GMP signals

Emerald Tyres shares were quoted at Rs 180, reflecting a grey market premium (GMP) of Rs 85, or 89.47 per cent, against the upper end of the IPO price band of Rs 95, which is also the issue price

Emerald Tyre Manufacturers IPO GMP: The unlisted shares of tyre manufacturer Emerald Tyre Manufacturers are commanding a solid premium in the grey market a day ahead of their listing, scheduled for Thursday, December 12, 2024, reflecting a positive market debut for the company’s shares. Sources tracking unofficial markets revealed that the company's shares were quoted at Rs 180, reflecting a grey market premium (GMP) of Rs 85, or 89.47 per cent, against the upper end of the IPO price band of Rs 95, which is also the issue price.

 

Should the current GMP trends sustain, Emerald Tyre Manufacturers' shares may list at around Rs 180 apiece on the NSE SME platform. Therefore, investors who were allotted the company’s shares may expect a gain of up to Rs 85 per share upon listing.

 

However, it is important to note that grey market transactions are unregulated, and listing prices may deviate from GMP indications. Additionally, the National Stock Exchange of India (NSE) has capped listing gains for SME stocks at 90 per cent of the issue price, which could also impact the final listing price.

 

The Rs 49.26 crore SME offering, which comprises a fresh issue of 4,986,000 equity shares and an offer for sale (OFS) of 199,200 equity shares with a face value of Rs 10 apiece, was available at a price band of Rs 90–95 per share, with a lot size of 1,200 shares. The IPO ended its subscription period after being oversubscribed nearly 530 times.

 

In its Red Herring Prospectus, Emerald Tyre Manufacturers stated that it will not receive any proceeds from the offer for sale, as each selling shareholder will receive their respective portions of the proceeds after deducting offer-related expenses and applicable taxes. However, the company intends to utilise the proceeds from the fresh issue for capital expenditure, general corporate purposes, and offer-related expenses.

 

Established in 2002, Emerald Tyre Manufacturers is a producer and supplier of a diverse range of tyres marketed under the GRECKSTER brand. The company’s product portfolio includes tyres, press-on bands, and industrial pneumatic tyres. Emerald Tyre Manufacturers also exports its products to several international markets, including the USA, UAE, Russia, and various European countries. The company maintains strategically located warehouses in Belgium, the UAE, and the USA.