Matangi Rubber Files IPO Papers With SEBI To Raise Funds For Expansion And Debt Repayment

Delhi-based tyre and rubber products manufacturer Matangi Rubber has submitted a draft red herring prospectus to the Securities and Exchange Board of India (SEBI), moving toward a public listing aimed at reducing borrowings and funding two new manufacturing facilities.

The total initial public offering (IPO) size is 72.76 lakh shares, comprising a fresh issue of 57.61 lakh equity shares and an offer for sale of 15.15 lakh shares by existing shareholders.

Sarthi Capital Advisors has been appointed as the book-running lead manager for the Matangi Rubber IPO.

Offer For Sale Breakdown

• Vandana Rubber and Chemicals (promoter): 13.63 lakh shares.

• Radhika Gupta: 2,150 shares.

• Anju Khanna, Priyanka Khanna and Pratyush Handa: Combined 1.5 lakh shares.

How Fresh Issue Proceeds Will Be Used

• Debt repayment: ₹45 crore.

• Greenfield rubber recycling products facility: ₹19.05 crore.

• Greenfield solid tyre manufacturing plant in Bhind, Madhya Pradesh: ₹8.4 crore.

• General corporate purposes: Remainder.

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About The Company

Incorporated in 2004, Matangi Rubber makes tyres, tubes, tyre flaps and rubber compounds across five plants: two in Selaqui, Uttarakhand; two in Bhind, Madhya Pradesh; and one in Gummidipoondi, Tamil Nadu. Its tyre portfolio serves the two-wheeler and three-wheeler segments, while tubes and tyre flaps go primarily into commercial vehicles.

Beyond manufacturing, the company trades rubber materials and provides support services to JK Tyre and Industries. It competes with listed players including CEAT, TVS Srichakra and Tolins Tyre.

Sources:

Moneycontrol

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