Emerald Tyre Manufacturers
Book Building issueSMENSE₹49.26 Cr issue
+90.00%
Listing gain over issue price
Issue size
₹49.26 Cr
1 lot at cut-off
₹1,14,000
Lot size
1,200shares
Open
05 Dec 2024
Close
09 Dec 2024
Allotment
10 Dec 2024
Listing
12 Dec 2024
Listing performance
Issue price
₹95
Listed at
₹180.50
Listing-day close
₹189.50
Latest price
₹62.30
Close on 23 Oct 2026
Listing gain
+90.00%
Return since issue
-34.42%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 05 Dec 2024 – 09 Dec 2024
- Listing date
- 12 Dec 2024
- Face value
- ₹10 per share
- Issue price
- ₹95 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹49.26 Cr
- Market cap at offer price
- ₹185 Cr
- Promoter holding
- 67.62% → 50.31% pre-issue → post-issue
- ISIN
- INE0RHD01013
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Emerald House, Plot No.2, Second Street, Porur Gardens, Phase-I, Vanagaram, Tiruvallur, Poonamallee, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 14,64,000 | — | — |
| Market maker | 3,00,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹95
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,14,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,28,000 |
| S-HNI (max) | 8 | 9,600 | ₹9,12,000 |
| B-HNI (min) | 9 | 10,800 | ₹10,26,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
14,64,000
Anchor portion
₹13.91 Cr
at ₹95 per share
Valuation and performance
Valuation at offer price
₹95 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.44 | 6.28 |
| P/E (×) | 11.26 | 15.13 |
| Price to book (×) | 2.55 | — |
| Market cap | — | ₹185 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 22.63%
- ROCE
- 15.84%
- Debt / equity
- 1.61
- PAT margin
- 7.16%
- NAV per share
- ₹37.31
- Price to book
- 2.55
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Emerald Tyre Manufacturers
Emerald Tyre Manufacturers Limited, incorporated in 2002 and converted to a public company in 2023, is engaged in manufacturing, supplying and servicing comprehensive ranges of tyres for material handling applications including forklifts, skid loaders, ground support equipment of airports, port trailers, agri implements, lawn and garden mowers, mining equipment, aerial work platform trucks, and backhoe loaders. The company has an installed production capacity of 3,522 MT of tyres, tubes and wheels (not annualised) at its manufacturing facility located at Plot No.79 & 80, EPIP Zone SIPCOT Industrial Complex Gummudipoondi, Tiruvallur District Tamil Nadu. The company has maintained presence in domestic as well as global markets for more than two decades and operates through two wholly owned subsidiaries: Emrald Tyres (Europe) BVBA and Emrald Middle East FZ LLC.
Company Analysis
from RHPEmerald Tyre Manufacturers Limited manufactures and supplies off-highway tyres for material handling, agricultural, mining, and port applications across domestic and global markets.
Emerald Tyre Manufacturers Limited, incorporated in 2002 and converted to a public company in 2023, is engaged in manufacturing, supplying and servicing comprehensive ranges of tyres for material handling applications including forklifts, skid loaders, ground support equipment of airports, port trailers, agri implements, lawn and garden mowers, mining equipment, aerial work platform trucks, and backhoe loaders. The company has an installed production capacity of 3,522 MT of tyres, tubes and wheels (not annualised) at its manufacturing facility located at Plot No.79 & 80, EPIP Zone SIPCOT Industrial Complex Gummudipoondi, Tiruvallur District Tamil Nadu. The company has maintained presence in domestic as well as global markets for more than two decades and operates through two wholly owned subsidiaries: Emrald Tyres (Europe) BVBA and Emrald Middle East FZ LLC.
Off Highway Tyres (OHT) manufacturingMaterial handling equipment tyresAgricultural equipment tyresMining equipment tyresAirport ground support equipment
Objects of the Issue
- Funding of the Capital Expenditure of our Company ₹3,633.49 lakhs p.20
- General corporate purposes p.20
- Funding of Capital Expenditure ₹3,633.49 lakhs p.75
- General Corporate Purposes [●] p.95
- Offer Expenses [●] p.95
Issue Structure
- Total Issue
- Up to 51,85,200 equity shares aggregating up to ₹ [●] lakhs
- Fresh Issue
- Up to 49,86,000 equity shares aggregating up to ₹ [●] lakhs
- Offer for Sale
- Up to 1,20,000 equity shares by Karthikeyan Swarnam and up to 79,200 equity shares by S Vijayalakshmi aggregating to ₹ [●] lakhs
- Price Band
- [●] (to be decided in consultation with BRLM)
- Lot Size
- [●] Equity Shares and in multiples of [●] Equity Shares
- Face Value
- ₹10 per equity share
Business Model
The company manufactures and sells off-highway tyres, tubes and wheels for material handling equipment, agricultural implements, mining equipment, airport ground support equipment, and similar applications. Revenue is generated through sale of products to customers on a purchase order basis without long-term contracts.
Business Segments
Manufacturing and supply of tyres for material handling equipment, agricultural implements, mining equipment, airport ground support equipment and similar applications
Dense mass of rubber compounds providing excellent durability and puncture resistance for slow-moving material handling applications in warehouses, factories, and construction sites.
Air-filled tyres constructed using nylon fabric, rubber compound, and steel beads in both tube and tubeless versions for slow-moving material handling applications carrying heavy loads.
Specialized tyres for material handling equipment.
Essential components of pneumatic tyres made from butyl rubber to hold air within the tyre and ensure optimal performance, critical for heavy-duty and material-handling applications.
Wheel rims for material handling equipment.
Manufacture of solid tyres for material handling equipment including forklifts, warehousing equipment, skid steer loaders, port trailers, and ground support equipment. Offered under brand names including Empower, Empower XT, Greckster Gold, Greckster, Greckster MEO, Solid Plus, and Ecostar.
Manufacture of pneumatic tyres and butyl tubes for industrial applications including forklifts, skid-steer loaders, tractors, lawn and garden equipment, and agricultural land use.
Manufacture of press-on band tyres for forklifts, warehousing equipment, port trailers, and road pavers under the Greckster brand.
Manufacture of polyurethane wheels, split rims, press-on hubs, and direct bonding wheels for material handling equipment, warehousing, and ground support applications.
Sale of tyres and related products in the domestic market
Sale of tyres and related products in international markets
Manufacture of pneumatic tyres of all categories
Manufacture of rims of all grades, split rims, single piece rims, multipiece rims, aluminium casting wheels, and cast iron wheels
Manufacture of Hydraulic Presses and other machineries used in the manufacture of Tyres and Rims
Manufacture of rubber-moulded goods including retreading/remoulding of solid and pneumatic tyres, mobile home tyres, agri implement tyres, MHE tyres, tyre wheel assemblies, rubber mats, rubber tracks and rubberization products
SWOT Analysis
Strengths
- • Established industry presence with 20+ years of operations in off-highway tyre manufacturing(p.19)
- • Significant production capacity with operational manufacturing facilities(p.19)
- • Flexible manufacturing capabilities to address market requirements(p.19)
- • Global market presence across Europe, Middle East and domestic India markets(p.33)
- • ISO certifications demonstrating quality and environmental management standards(p.33)
- • Experienced and dedicated management team with established market presence(p.98)
- • Manufacturing capability for wide range of Off Highway Tyres with diverse product offerings(p.98)
- • Customized product offerings tailored to customer needs(p.98)
- • Diverse customer base reducing concentration risk(p.98)
- • Experienced and dedicated management team with over two decades of industry expertise(p.127)
- • Manufacturing facility with capacity to handle wide range of Off Highway Tyres under one roof(p.127)
- • Wide product range and customized product offerings across multiple tyre segments(p.127)
- • Diverse global customer base reducing market concentration risk(p.128)
- • Proprietary Bacucot technology in solid tyre manufacturing reducing heat hysteresis(p.129)
- • Strong R&D capabilities with integrated testing facilities and in-house mould shop(p.129)
- • Quality certifications and compliance with international standards(p.128)
- • Established management team with decades of experience in tyre manufacturing and industrial operations(p.167)
- • International presence through wholly-owned subsidiaries in UAE and Belgium for export markets(p.186)
- • Significant export revenue generation with strong domestic and international sales(p.198)
- • Strong promoter backing and ownership commitment with promoter holding 47.42% of equity(p.170)
- • Established manufacturing capacity in tyres and rims with diversified product portfolio(p.217)
- • Strong revenue growth trajectory with consistent market expansion(p.252)
- • Established presence in both domestic and export markets with WOS subsidiaries(p.261)
Weaknesses
- • High dependence on limited customer base for revenue(p.26)
- • Heavy reliance on small number of key suppliers for raw materials(p.26)
- • Substantial debt burden with significant outstanding borrowings(p.30)
- • Unregistered trademarks and brand names lacking statutory protection(p.31)
- • History of statutory filing delays and regulatory non-compliance(p.26)
- • Significant portion of debt is unsecured and subject to recall(p.31)
- • No long-term contracts with customers, reliance on purchase orders(p.26)
- • Criminal litigation cases pending against promoter and KMP(p.32)
- • High debt-to-equity ratio indicating significant leverage(p.100)
- • Dependence on raw material imports with associated supply and cost risks(p.39)
- • Plant and operations concentrated at single facility location(p.94)
- • Capacity constraints limiting ability to meet growing customer demand(p.127)
- • High concentration of manufacturing facility in single location (Tamil Nadu)(p.116)
- • High financial leverage with significant short-term borrowings relative to equity(p.183)
- • Dependence on personal guarantees from promoter and family members for debt obligations(p.191)
- • Concentration of shareholding with promoter family entities holding over 83% of shares(p.189)
- • Pending tax assessments and contingent liabilities aggregating significant amounts(p.204)
- • Material discrepancies between book values and bank-submitted stock/receivables statements(p.206)
- • High debt burden relative to equity with Total Debt to Shareholders' Funds ratio of 1.50 times(p.208)
- • Concentration of revenue among top customers creating revenue dependency risk(p.261)
- • Significant outstanding income tax demands and assessments pending resolution(p.237)
- • Operational disruptions from unfiled charges on borrowings indicating administrative deficiencies(p.239)
- • Pending litigation against promoter/director related to factory safety violations under Factories Act(p.266)
- • Multiple pending criminal litigations against key managerial personnel related to alleged financial fraud at prior company(p.267)
- • Significant outstanding direct tax cases pending against the company(p.268)
- • High finance costs indicating significant debt burden(p.263)
- • Substantial increase in trade receivables(p.263)
Opportunities
- • Strong growth trajectory in global OHT market with robust CAGR(p.19)
- • India's exceptional growth in OHT market driven by government infrastructure initiatives(p.19)
- • Diversification of product portfolio addressing multiple applications(p.19)
- • Expansion potential in new geographies and market segments(p.26)
- • Access to export incentives and duty drawback schemes(p.35)
- • Expansion of production capacity across all tyre segments (mixing, solid, pneumatic, tubes)(p.75)
- • Growing demand for specialized tyres in emerging off-highway applications(p.75)
- • Enhanced market presence through public listing on NSE EMERGE platform(p.73)
- • Environmental sustainability initiatives attracting ESG-conscious customers(p.75)
- • Strong India-specific economic tailwinds with 6.2% projected GDP growth in 2024(p.111)
- • Growing tyre market in India projected to reach USD 25.50 billion by FY2031 from USD 13.11 billion in FY2023(p.114)
- • Increasing demand for Off-The-Road (OTR) tyres driven by infrastructure development and mechanization of agriculture(p.114)
- • Rising electric vehicle adoption requiring specialized high-torque tyres(p.113)
- • Government focus on 'Make in India' and import duty regulations favoring domestic manufacturing(p.114)
- • Export market growth potential with Indian tyre export expected to increase from 20% to 30% of industry sales by 2030(p.115)
- • Shift towards sustainable and green tyre manufacturing practices(p.114)
- • Capacity expansion through capital work in progress targeting machinery augmentation(p.183)
- • Export market expansion with duty drawback and MEIS/Focus benefits contributing to revenue(p.198)
- • Growing industrial tyres segment with established international customer base across UAE and Europe(p.173)
- • Expansion into emerging markets with focus on new geographies and product segments(p.262)
- • Growth in industrial tyres and specialised segments including agri-implement and MHE tyres(p.262)
- • Capacity utilisation improvements through capital investments and CWIP projects(p.237)
Threats
- • Significant raw material price volatility driven by crude oil and natural rubber fluctuations(p.26)
- • Supply chain disruptions from natural disasters affecting raw material availability(p.26)
- • Intense competition from established global tyre manufacturers and local players(p.28)
- • Foreign exchange volatility affecting overseas revenue and financial performance(p.34)
- • Risk of import duties and regulatory restrictions on export markets(p.36)
- • Potential disruption from COVID-19 or similar communicable diseases affecting supply chains(p.37)
- • Regulatory tightening and compliance costs related to environmental and labour laws(p.31)
- • Risk of government withdrawal of export incentives and tax benefits(p.35)
- • Regulatory changes in taxes and tariffs affecting raw material costs(p.39)
- • India's developing infrastructure creating disruption risks to operations(p.39)
- • Foreign exchange fluctuations impacting import costs and international operations(p.39)
- • Natural calamities and external shocks affecting Indian economy and operations(p.39)
- • Political instability and shifts in economic policy creating business uncertainty(p.39)
- • Volatile raw material prices constraining industry growth and profitability(p.113)
- • Intense competition from China and Sri Lanka manufacturers(p.127)
- • Global trade disruptions causing increased shipping costs and delays(p.104)
- • Stringent government regulations requiring sustainable waste management and additional compliance costs(p.113)
- • Global economic slowdown risks with moderated growth projections(p.103)
- • Geopolitical tensions impacting energy markets and commodity prices(p.104)
- • High interest burden on borrowings constraining profitability with finance costs exceeding ₹340 lakhs(p.184)
- • Exposure to foreign exchange volatility through significant export operations and foreign subsidiaries(p.198)
- • Regulatory compliance requirements and outstanding income tax demands creating contingent liabilities(p.204)
- • Working capital intensity with significant inventory and receivables relative to current liabilities(p.201)
- • Intense competitive pressure from domestic and global competitors with varying pricing strategies(p.253)
- • Volatility in global markets and geopolitical risks impacting export demand and supply chains(p.252)
- • Dependence on imported raw materials and exposure to foreign exchange fluctuations(p.230)
- • Regulatory changes and tax law modifications creating uncertainty in operating costs(p.253)
- • Significant economic changes and uncertainties affecting business operations(p.265)
- • Known trends and uncertainties with material adverse impact on revenue(p.265)
- • Business exposed to future cost increases from labor and material costs(p.265)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Chandhrasekharan Thirupathi Venkatachalam | Promoter | 47.42% | — |
| Karthikeyan Swarnam | Selling Shareholder (Offer for Sale) | — | — |
| S Vijayalakshmi | Selling Shareholder (Offer for Sale) | — | — |
| Chandhrasekharan Thirupathi Venkatachalam | Promoter | 47.42% | — |
| Thirupathi Venkatachalam | Promoter Group | 11.74% | — |
| Kannaki Thirupathi | Promoter Group | 4.69% | — |
| Srinivas Venkatachalam Thirupathi | Promoter Group | 3.77% | — |
| Karthikeyan Swarnam | Selling Shareholder | 7.78% | — |
| S Vijayalakshmi | Selling Shareholder | 1.09% | — |
| Chandrasekharan Venkatachalam Thirupathi | Promoter | — | — |
| Chandhrasekharan Venkatachalam Thirupathi | Promoter | 47.42% | — |
| V T Chandhrasekharan | Promoter | 47.42% | — |
| T Kannaki | Promoter | 47.42% | — |
| V Thirupathi | Promoter | 4.69% | — |
| Mustang Trading Company | Promoter Group | 12.31% | — |
| Karthikeyan Swarnam | Selling Shareholder | — | — |
| S Vijayalakshmi | Selling Shareholder | — | — |
Leadership
Chandhrasekharan Thirupathi Venkatachalam · Chairman and Managing Director (CMD)
Varadarajan Krishnaram · Chief Executive Officer (CEO)
Shankar Ganesh Subramanian · Chief Financial Officer (CFO)
Eswara Krishnan D · Whole-time Director (WTD)
Raja Devika Dhivya · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Emerald Tyre Manufacturers IPO FAQs
What is the lot size of Emerald Tyre Manufacturers IPO?
The minimum lot size of Emerald Tyre Manufacturers IPO is 1,200 shares. One lot costs ₹1,14,000 at the cut-off price.
When does Emerald Tyre Manufacturers IPO open and close?
Emerald Tyre Manufacturers IPO opened for subscription on 05 Dec 2024 and closed on 09 Dec 2024.
What is the listing date of Emerald Tyre Manufacturers IPO?
Emerald Tyre Manufacturers IPO listed on 12 Dec 2024.