The retail and non-institutional investors (NIIs) led the final day of bidding on Monday, December 9, which saw a strong subscription for Emerald Tyre Manufacturers’ IPO.
In total, 530.67 times subscriptions for over 181.55 crore shares—compared to the 34.21 lakh shares available—were submitted for the NSE SME issue. Bids on the IPO were accepted from December 5 through December 9.
Subscription across categories
The NIIs subscribed to their category 912.58 times, demonstrating the highest demand. Over 66.91 crore shares were bid on by the NIIs, while over 7.33 lakh shares were offered.
Over 95.5 crore shares were bid on out of the 17.11 lakh shares available in the retail portion of the IPO, which was booked 558.11 times.
With bids for over 19.14 crore shares against the 9.76 lakh shares available, the Qualified Institutional Buyers (QIBs) caused a 195.95-fold subscription in the category.
GMP (grey market premium)
Emerald Tyre Manufacturers’ grey market premium (GMP) has increased significantly as a result of investors’ reaction.
The company was reportedly fetching a premium of Rs 95 in the unofficial market, which would indicate a 100 per cent listing pop for investors and make it another SME multibagger.
Issue size and structure
The goal of the Emerald Tyre Manufacturers IPO is to raise Rs 49.26 crore through book-building. An offer-for-sale (OFS) component of 1.99 lakh shares and a new issue of 49.86 lakh shares made up the initial public offering.
Price band and minimum bid
A price range of Rs 90 to Rs 95 per share was established for the IPO. A single lot size of 1,200 shares required a minimum investment of Rs 1,14,000 per application from retail investors.
Two lots, comprising of 2,400 shares, amounting to Rs 2,28,000, was the minimum investment required of high-net-worth individuals (HNIs).
Allotment finalisation and lisitng date
On December 10, Emerald Tyre Manufacturers Limited is anticipated to finalize the IPO share allocation status following the subscription. On the same day, refunds will also be given to non-allottees. On December 11, the business will move shares to the winning bidders’ Demat accounts.
On December 12, Emerald Tyre Manufacturers Limited’s shares are expected to go public on the NSE SME platform, Emerge.
The IPO bidding for Emerald Tyre Manufacturers began on December 5, 2024, and ended on December 9, 2024.
Use of IPO proceedings
The company has stated that the money raised from the IPO will be used for capital expenditures, general business requirements, and IPO-related expenses.
