The initial share sale of Tamil Nadu-based Emerald Tyre Manufacturers has garnered overwhelming response from investors on December 9, the final day of bidding, subscribing over 458 times, while the grey market premium also soared significantly.
The tyre manufacturer targets to raise Rs 49.26 crore through the offer, which consists of fresh issue of 49.86 lakh shares worth Rs 47.37 crore, and an offer-for-sale of 1.99 lakh shares worth Rs 1.89 crore by existing shareholders.
Investors have applied for 170.61 crore equity shares as against the offer size of 37.21 lakh shares through 7.84 lakh applications, the subscription data on the NSE showed.
Read More: Stock Market Updates: Sensex Down 200 Points, Nifty At 24,630; HUL Down 3%
Non-institutional and retail investors took the lead to boost the IPO subscription numbers, picking 882.7 times and 510.2 times of their allotted quotas, while the part set aside for qualified institutional buyers was subscribed 191.14 times so far.
Considering the robust response from investors, the Emerald Tyre IPO shares attracted healthy premium in the grey market, in fact, soaring to 100 percent from 75-80 percent quoted last week, the market observers said. The grey market is an unofficial platform wherein IPO shares can be bought and sold till the listing.
Read More: Inventurus Knowledge Solutions IPO: Check Date, Price Band, Issue Size
The trading in Emerald shares will commence on the NSE Emerge platform on December 12.
Incorporated in 2002, the off highway tyre manufacturer makes tyres for material handling applications (like forklifts, skid loaders, ground support equipment of airports, port trailers, agri implements, lawn and garden mowers, mining equipment, aerial work platform trucks, backhoe loaders), under the brand GRECKSTER.
The company is going to utilise fresh issue proceeds for its capital expenditure, general corporate purposes, and offer expenses.
