The shares of tire manufacturer Emerald Tyre Manufacturers Ltd. listed at a premium of 90 per cent on the NSE SME platform, Emerge, marking a strong market debut on Thursday, December 12.
The NSE listed the company's shares at Rs 180.5 each, which was the issue price. Not long after listing, the stock surged 5 per cent to hit the upper circuit fliter limit at Rs 189.50 per share on the NSE (National Stock Exchange).
Investors' listing gains
A single lot of the company's shares awarded to an IPO investor at the listing price of Rs 180.5 was worth Rs 2,16,600 (Rs 180.5 x 1,200). Compared to the minimum investment of Rs 1,14,000, investors who received at least one lot in the IPO allotment would have gained about Rs 1,02,600 after the premium listing.
Subscription across all categories
Compared to the 34.21 lakh shares that were available, 530.67 times as many subscriptions were made for over 181.55 crore shares in the NSE SME issue. The IPO's bidding period ran from December 5 to December 9.
The NIIs showed the greatest demand, subscribing to their category 912.58 times. The NIIs bid on more than 66.91 crore shares, and more than 7.33 lakh shares were made available.
The retail portion of the IPO had 17.11 lakh shares available, which were booked 558.11 times, and over 95.5 crore shares were bid on.
The Qualified Institutional Buyers (QIBs) forced a 195.95-fold subscription in the category, with bids for more than 19.14 crore shares compared to the 9.76 lakh shares that were available.
Emerald Tyres IPO Details
IPO size ,structure, price band and minimum bid
Through book-building, the Emerald Tyre Manufacturers IPO seeks to raise Rs 49.26 crore. The initial public offering consisted of a new issue of 49.86 lakh shares and an offer-for-sale (OFS) component of 1.99 lakh shares.
For the IPO, a price range of Rs 90 to Rs 95 per share was set. Retail investors had to invest a minimum of Rs 1,14,000 per application for a single lot size of 1,200 shares.
High-net-worth individuals (HNIs) had to invest a minimum of Rs 2,28,000 in two lots, which included 2,400 shares.
Use of IPO proceedings
According to the company, the funds raised from the IPO will be utilized for IPO-related costs, general business needs, and capital expenditures.
