Matangi Rubber IPO

Matangi Rubber IPO is a book-building issue consisting entirely of a fresh issue of up to 37,09,600 equity shares. The equity shares are proposed to be listed on the BSE SME.

Sarthi Capital Advisors Private Limited is the book-running lead manager to the issue, and Bigshare Services Private Limited is the registrar. Key details such as the IPO dates, price band and lot size are to be announced.

About Matangi Rubber Limited

Matangi Rubber Limited was incorporated on June 23, 2004, and was subsequently converted into a public limited company on November 26, 2024. The company is engaged in the manufacturing of tyre flaps, tyre tubes, and rubber compounds, primarily catering to the commercial vehicle segment. It operates through a network of 5 manufacturing plants located across Uttarakhand, Madhya Pradesh, and Tamil Nadu.

The company follows a diversified business model comprising contract manufacturing and job work services. Under its contract manufacturing business, Matangi Rubber manufactures customised tyre flaps for customers, including products carrying client-specific branding. Under the job work model, customers supply raw materials while the company undertakes processing activities and earns conversion charges.

Matangi Rubber's product portfolio mainly includes tyre flaps, tyre tubes, and rubber compounds. The company has also expanded its presence through the acquisition of a controlling stake in MG Industries Limited and has established Fresca Recycling Technologies Private Limited to strengthen its presence in rubber recycling and related sustainable technologies.

A significant portion of the company's business is supported by long-standing customer relationships, particularly in the tyre industry. Its manufacturing infrastructure across multiple locations enables it to serve customers efficiently while maintaining product quality, timely deliveries, and operational flexibility.

The company's growth strategy is focused on capacity expansion, product diversification, and strengthening its manufacturing capabilities. It is undertaking projects for rubber recycling products and solid tyres, while also expanding into the 2-wheeler and 3-wheeler tyre segment. Through these initiatives and continued investment in manufacturing infrastructure, Matangi Rubber aims to enhance its market presence and improve operational efficiencies.

Industry Outlook

• India is the world's 3rd largest producer and 2nd largest consumer of natural rubber, providing a strong foundation for the domestic rubber and tyre industry.
• The Indian rubber industry comprises nearly 6,000 manufacturing units, produces more than 35,000 products, employs around 400,000 people, and generates annual turnover of approximately ₹200 billion.
• Natural rubber consumption in India continues to outpace production, with demand projected at around 14.86 lakh tonnes in FY25, indicating sustained growth opportunities for rubber manufacturers and recyclers.
• The tyre sector accounts for nearly 50% of total rubber consumption in India and is supported by rising automotive production, replacement demand, infrastructure development, and increasing mobility requirements.
• The global tyre market was valued at approximately USD 279.8 billion in 2024 and is projected to grow significantly, creating favourable long-term demand prospects for tyre components and rubber products.
• Sustainability initiatives and government support for tyre recycling, extended producer responsibility (EPR), and circular economy practices are encouraging increased adoption of reclaimed and recycled rubber products.
• Growing vehicle ownership, infrastructure expansion, technological developments in tyre manufacturing, and increasing focus on environmentally friendly products are expected to support long-term growth across the rubber and tyre industry.

Matangi Rubber IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Repayment and/or prepayment, in full or part, of certain outstanding borrowings, which is expected to reduce debt-servicing costs and improve the company's capital structure.
• Funding capital expenditure requirements for setting up a greenfield Rubber Recycling Products manufacturing facility at Bhind, Madhya Pradesh, with a proposed capacity of 3,910 MTPA.
• Funding capital expenditure requirements for establishing a Solid Tyre manufacturing facility at Bhind, Madhya Pradesh, with a proposed capacity of 603 MTPA.
• Supporting the company's diversification into recycled rubber products, enabling it to benefit from increasing demand for sustainable and environmentally friendly rubber solutions.
• Expanding the company's manufacturing capabilities and product portfolio beyond tyre flaps and tubes through new business verticals such as solid tyres and recycling products.
• Strengthening operational efficiency and long-term growth prospects by investing in capacity expansion projects scheduled for commercial operations from January 2027.
• Meeting general corporate purposes, including supporting business growth initiatives, improving operational flexibility, and enhancing the company's overall market position.

Financial Performance of Matangi Rubber Limited

Matangi Rubber Limited Peer Details Comparison 

Strengths and Opportunities of Matangi Rubber IPO

1. Experienced promoter and management team with more than 20 years of experience in the rubber and tyre industry.
2. Well-established manufacturing infrastructure comprising 5 manufacturing facilities across 3 states.
3. Diversified business model supported by both contract manufacturing and job work operations.
4. Long-standing customer relationships, including business with established tyre manufacturers such as JK Tyre.
5. Strong financial performance, with consolidated revenue of ₹10,137.01 lakh and profit after tax of ₹1,897.91 lakh in FY25.
6. Healthy profitability metrics, including EBITDA margin of 28.15% and return on equity of 20.51% in FY25.
7. Expansion into high-growth segments such as recycled rubber, solid tyres, and 2-wheeler and 3-wheeler tyres.
8. Strategic acquisitions and subsidiaries provide additional growth opportunities in manufacturing and recycling businesses.
9. Industry tailwinds supported by rising vehicle demand, infrastructure development, sustainability initiatives, and increasing rubber consumption.

Risks and Threats of Matangi Rubber IPO

1. The company is exposed to fluctuations in natural rubber and other raw material prices, which may impact profitability.
2. A significant disruption at any of its manufacturing facilities could adversely affect production and financial performance.
3. Rubber manufacturing operations involve fire, accident, and safety risks because rubber is a combustible material.
4. The company operates in a highly competitive industry with competition from organised, regional, and unorganised players.
5. Dependence on key customers could adversely affect revenues if business relationships weaken or orders decline.
6. The rubber and tyre industry is affected by cyclical trends in the automotive sector and broader economic conditions.
7. Delays in implementing the proposed rubber recycling and solid tyre projects may affect future growth plans.
8. The company has outstanding borrowings, and failure to effectively manage debt obligations could impact financial flexibility.
9. Changes in regulations, environmental compliance requirements, or industry policies could increase operational costs and affect business performance.

Matangi Rubber IPO Reservation

Matangi Rubber IPO Promoter Holding

The promoters of the company are Mohit Gupta, Manju Gupta, Radhika Gupta and Vandana Rubber & Chemicals Private Limited.

Matangi Rubber IPO Prospectus

• Matangi Rubber IPO DRHP

Matangi Rubber IPO Registrar and Lead Managers

Matangi Rubber IPO Lead Managers

• Sarthi Capital Advisors Private Limited

Registrar for Matangi Rubber IPO

Bigshare Services Private Limited

• Contact Number: 8657578989 / 8069219065
• Email Address: ipo@bigshareonline.com

Matangi Rubber IPO Registrar

How To Apply for Matangi Rubber IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Matangi Rubber IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the Matangi Rubber IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

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Contact Details of Matangi Rubber IPO

Registered Office: Unit No. 401, 4th Floor, Southern Park, Saket District Center, Saket (South Delhi), South Delhi, New Delhi, 110017.

Phone: 011 42709020

E-mail: cs@matangirubber.com