Upcoming IPO: Matangi Rubber files draft papers with SEBI

Matangi Rubber IPO: Tyre tubes manufacturer Matangi Rubber has filed preliminary papers with the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise funds through an initial public offering.

The proposed initial share sale is a mix of a fresh issuance of 57.61 lakh shares and an offer for sale (OFS) component of 15.15 lakh shares, according to the draft red herring prospectus (DRHP).

Under the OFS, promoters Vandana Rubber and Chemicals Private Limited and Radhika Gupta and other selling shareholders Anju Khanna, Pratyush Handa and Priyanka Khanna will offload their stake.

The fresh issue proceeds will be used for repayment of certain outstanding loans availed by the company, capital expenditure needs and general corporate purposes.

"Our company expects to receive the benefits of listing of the equity shares on the stock exchanges including enhancing our visibility and our brand image among our existing and potential customers and creating a public market for our equity shares in India. It will also make future financing easier and affordable in case of expansion or diversification of the business," the DRHP said.

Sarthi Capital Advisors is the issue's sole book-running lead manager, while Bigshare Services is the registrar.

The company's shares will be listed on the National Stock Exchange (NSE) and the BSE.

Matangi Rubber manufactures and sells tyre tubes under its own brand name. The company procures the required raw materials and carries out complete manufacturing processing at its in-house production facilities. The finished products are marketed, distributed, and sold to customers across various markets.

It makes tyres, tyre flaps, tubes & rubber compound. Its tyre portfolio largely caters to the 2-wheeler and 3-wheeler segments, while the tyre flaps and tubes manufactured by the firm are mainly utilised in commercial vehicles like trucks, buses, and heavy utility vehicles.

It has a total of five manufacturing plants, including two each in Uttarakhand and Madhya Pradesh and one in Tamil Nadu.