Matangi Rubber Files DRHP With SEBI For 37.09 Lakh Equity Share IPO

Matangi Rubber, a manufacturer of rubber products for the automotive industry, has announced the filing of its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The proposed Initial Public Offering (IPO) will consist solely of a fresh issue and will be listed on the BSE SME platform.

IPO Details

The issue comprises a fresh issue of up to 37,09,600 equity shares with a face value of ₹10 each. There is no offer for sale component. The book running lead manager for the issue will be Sarthi Capital Advisors, and the registrar to the issue will be Bigshare Services.

Objectives of the IPO

The company intends to utilise the proceeds primarily for debt repayment, allocating up to ₹2,500 lakh towards this objective. Additionally, funds will be deployed for expansion projects in Bhind, Madhya Pradesh, including:

• ₹1,900 lakh for establishing a rubber recycling unit with a capacity of about 3,910 MTPA.
• ₹700 lakh for setting up a solid tyres unit with an estimated capacity of 603 MTPA.
  The remaining proceeds will be directed towards general corporate purposes. Both plants are expected to commence commercial operations by 2027.

Company Background

Founded in 2004 and headquartered in New Delhi, Matangi Rubber Limited operates five manufacturing units across Uttarakhand, Madhya Pradesh, and Tamil Nadu. The company also undertakes contract manufacturing services for large tyre producers. Its diversified operations support its role as a supplier to the automotive sector.

Financial Performance

Matangi Rubber has reported consistent revenue growth in recent years. Revenue from operations increased to ₹10,137.01 lakh in FY25, compared to ₹9,011.86 lakh in FY24 and ₹8,535.75 lakh in FY23. Total income for FY25 stood at ₹10,475.75 lakh.

Profit after tax (PAT) surged to ₹1,897.91 lakh in FY25, a sharp rise from ₹476.03 lakh in FY24 and ₹320.42 lakh in FY23. Earnings per share (EPS) also rose to ₹61.42 in FY25 from ₹17.70 in FY24. The company’s net worth increased to ₹9,252.93 lakh in FY25, while total borrowings reached ₹9,186.24 lakh.

Read More: Tata Group Firm Targets $2 Billion Public Offer in October

Conclusion

Matangi Rubber Limited’s planned IPO reflects its strategy to strengthen its balance sheet through debt repayment while investing in capacity expansion. With new plants in the pipeline and robust financial growth in recent years, the company is preparing for its next phase of development in the automotive rubber products sector.

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