Matangi Rubber Files IPO Papers to Fund Expansion and Loan Repayment
Matangi Rubber Files Draft Red Herring Prospectus for Rs 72.76 Lakh IPO
Delhi-based Matangi Rubber, a prominent manufacturer of tyres, tyre-flaps, and tubes, has filed a Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to raise funds through an initial public offering (IPO). The IPO aims to facilitate expansion and loan repayment.
The IPO comprises of 72.76 lakh shares, consisting of fresh issuance of 57.61 lakh shares and an offer-for-sale of 15.15 lakh shares by existing shareholders. Promoters Vandana Rubber and Chemicals and Radhika Gupta have proposed to sell 13.63 lakh and 2,150 shares, respectively, through the offer-for-sale. Additionally, Anju Khanna, Priyanka Khanna, and Pratyush Handa are selling shareholders in the OFS, offloading a total of 1.5 lakh shares.
Matangi Rubber was incorporated in 2004 and manufactures a range of products, including tyres, tyre-flaps, tubes, and rubber compounds. Its tyre portfolio primarily caters to the 2-wheeler and 3-wheeler segments, while the tyre flaps and tubes are mainly used in commercial vehicles. The company operates through five manufacturing plants located in Selaqui (Uttarakhand), Bhind (Madhya Pradesh), and Gummidipoondi (Tamil Nadu). Matangi Rubber also trades in rubber materials and provides support services to key customers, including JK Tyre & Industries.
The company competes with listed entities such as Ceat, TVS Srichakra, and Tolins Tyre. Matangi Rubber intends to utilize the proceeds from the fresh issue for loan repayment, amounting to Rs 45 crore. Additionally, Rs 19.05 crore will be utilized for setting up a green field manufacturing facility for rubber recycling products, and Rs 8.4 crore for setting up a green field manufacturing facility for the production of solid tyres in Bhind, Madhya Pradesh. The remaining fresh issue funds will be used for general corporate purposes.
| Entity | Competitor |
|---|---|
| Matangi Rubber | Ceat |
| TVS Srichakra | |
| Tolins Tyre |
The merchant banker appointed to manage the Matangi Rubber IPO is Sarthi Capital Advisors.
Investor Takeaway
Matangi Rubber's IPO filing may provide an opportunity for investors to participate in the company's expansion and loan repayment plans.
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