Emerald Tyre soars 5% after listing at 90% premium on NSE SME; shares hit upper circuit
Emerald Tyre Manufacturers Ltd made a strong market debut on December 12, listing at a 90% premium on the NSE SME platform, Emerge. The stock opened at ₹180.5, higher than the issue price of ₹95, and quickly hit the 5% upper circuit limit at ₹189.5. Within the first five minutes, over 10.69 lakh shares changed hands, with a turnover of ₹19.68 crore. At the listing price, IPO investors holding a single lot of 1,200 shares saw a gain of approximately ₹1,02,600.
Emerald Tyre raised ₹49.26 crore through its IPO, which was open from December 5 to 9. The IPO saw an overwhelming response, oversubscribed by 531 times. Retail, non-retail, and Qualified Institutional Buyers (QIBs) all placed heavy bids. The QIB portion was subscribed 196 times, while the Non-Institutional Investors (NIIs) applied 913 times over the available shares. Retail investors bid 559 times more than the shares offered. Additionally, the company raised ₹13.91 crore from anchor investors.
The ₹49.26-crore IPO included a fresh issue of 49.86 lakh shares and an Offer for Sale (OFS) of 1.99 lakh shares by non-promoters S Vijayalakshmi and Karthikeyan. Emerald Tyre plans to use the IPO funds mainly for capital expenditure.
The company manufactures off-the-highway tyres used in various equipment like port trailers, forklifts, mining machines, and agricultural implements. Their production facility has a capacity of 10,560 megatonnes of tyres, tubes, and wheels annually.
