Matangi Rubber IPO Gets SEBI Nod For 72.76 Lakh-Share Issue
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The Gupta family-promoted company plans to use ₹45 crore from the fresh issue to repay debt, while another ₹27.48 crore is earmarked for two new manufacturing facilities in Madhya Pradesh.
Matangi Rubber has received SEBI's approval to proceed with its IPO, nearly four months after filing its draft papers with the capital markets regulator. The Delhi-based company is planning to issue 72.76 lakh shares, comprising 57.61 lakh fresh shares and an offer for sale (OFS) of 15.15 lakh shares.
SEBI issued its observations on the company's draft papers on September 28, allowing Matangi Rubber to proceed with the IPO within the next year.
The Gupta family-promoted company will use ₹45 crore from the fresh issue to repay debt. Another ₹19.05 crore is earmarked for a greenfield facility for rubber recycling products and ₹8.43 crore for a new solid-tyre manufacturing facility, both in Bhind, Madhya Pradesh.
Sarthi Capital Advisors is the sole merchant banker managing the issue.
Matangi Rubber IPO Details
The proposed IPO comprises 57.61 lakh fresh shares and 15.15 lakh shares through the OFS. The fresh issue proceeds will be used for three main purposes - debt repayment, setting up the rubber recycling facility and establishing the solid-tyre plant.
Matangi Rubber plans to spend ₹45 crore on repayment of borrowings. The company has allocated ₹19.05 crore for the rubber recycling facility and ₹8.43 crore for the solid-tyre plant. The remaining funds will be used for general corporate purposes. The company had filed its DRHP with SEBI in May 2026.
Matangi Rubber Business And Financials
Matangi Rubber manufactures tyre flaps, tubes, tyres and rubber compounds. It operates five manufacturing plants, with tyre flaps and tubes mainly supplied for commercial vehicles such as trucks, buses and heavy utility vehicles.
Contract manufacturing of tyre flaps was the company's largest revenue contributor, accounting for 75% of revenue in the nine months ended December 2025. Job-work services contributed another 21%.
For the nine months ended December 2025, Matangi Rubber reported consolidated revenue of ₹86.64 crore compared with ₹101.3 crore for the full financial year ended March 2025.
Profit stood at ₹16.42 crore during the nine-month period, against ₹19.66 crore in FY2025. The company had borrowings of ₹61.7 crore as of December 31, 2025. The planned ₹45 crore repayment from the IPO proceeds is aimed at reducing this debt.
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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