Pentagon Rubber IPO will open for subscription from 26 June 2023. the company aims for an issue size of ₹16.17 Cr through this IPO.
Company Overview
| Full name | Pentagon Rubber Limited |
| Sector | Agriculture |
| Industry | Rubber products |
| Company Website | https://pentagonrubber.com/ |
About Company
Incorporated in 2004, Pentagon Rubber manufactured Rubber Conveyor belts, Transmission Belts, Rubber Sheets, and Elevator Belts. The manufacturing unit of Pentagon Rubber is located in Dera Bassi, Punjab, which is 25 km from Chandigarh City. The company has installed one of the longest conveyor belting presses in India, with a production capacity of 21mtr in a single stroke. This technology allows the company to produce conveyor rubber belting up to 3150KN/m, making it one of the top manufacturers in India.
The production capacity is over 300 sq km of conveyor rubber belts per year, and it has a modern laboratory of international standards that can produce conveyor belts as per DIN, BS, IS, ISO, SABS, AS, GOST, and CAN standards. The company has a complete QAP & QC system that is followed in its manufacturing process, which includes rigorous and complete testing of in-process belts and finished belts. As on 30 September 2022, Pentagon Rubber has 65 employees including directors on payroll.
The Objective of the Issue
- To meet working capital requirements, and
- General corporate expenses.
Pentagon Rubber IPO Timetable
| IPO Opening date | 26 June 2023 |
| IPO Closing | 30 June 2023 |
| Basis of Allotment | 05 July 2023 |
| Initiation Refund | 06 July 2023 |
| Credit to Demat Account | 07 July 2023 |
| Listing Date | 10 July 2023 |
Pentagon Rubber IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹16.17 Cr – 2,310,000 shares |
| Fresh Issue | ₹16.17 Cr – 2,310,000 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹65 to ₹70 per share |
| Lot size | 2000 Shares |
| Retail Allocation | 35% |
| Listing Exchange | NSE SME |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 2000 | ₹140,000 |
| Retail (Max) | 1 | 2000 | ₹140,000 |
| HNI (Min) | 2 | 4,000 | ₹280,000 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | 9M FY 2023 | |
| Revenue | 1,933.03 | 2,316.39 | 3,502.65 | 2,996.12 |
| Expenses | 1,840.01 | 2,211.80 | 3,195.59 | 2,684.91 |
| Net income | 93.81 | 110.30 | 308.66 | 215.86 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | |
| EPS | 1.74 | 2.04 | 5.72 |
| PE ratio | – | – | 11.36 – 12.24 |
| RONW (%) | 69.24 | 44.88 | 55.67 |
| NAV | 3.39 | 6.14 | 13.86 |
| ROCE (%) | 25.25 | 25.20 | 31.39 |
| EBITDA (%) | 10.64 | 9.90 | 12.02 |
| Debt/Equity | 9.19 | 6.71 | 3.17 |
Company Promoters
- Mr. Anil Jain
- Mr. Lalit Jain
- Mr. Ashish Jain
- Mr. Saurabh Jain.
Promoter Holding
| Pre Issue Share Holding | 100% |
| Post Issue Share Holding | 70.04% |
Lead Manager(s)
BEELINE CAPITAL ADVISORS PRIVATE LIMITED
807, Phoenix, Opp. Girish Cold Drinks,
Near Vijay Cross Roads, Navrangpura, Ahmedabad -380009
Phone: +91-79-4840 5357, 48406357
Email: mb@beelinemb.com
Website: www.beelinemb.com
IPO Registrar
LINK INTIME INDIA PRIVATE LIMITED
C-101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg, Vikhroli (West),
Mumbai, Maharashtra, India – 400 083
Phone: +91-8108114949
Email: pentagonrubber.ipo@linkintime.co.in
Website: www.linkintime.co.in
Contact Details
PENTAGON RUBBER LIMITED
Gulabgarh Road, Village Behra Dist. S.A.S. Nagar,
Derabassi, Mohali, Punjab- 140507, India
Phone: +91-9816610646
E-mail: corporate@pentagonrubber.com
Website: www.pentagonrubber.com
Allotment Status
Pentagon Rubber IPO allotment status will be available on Link Intime’s website. Click on Link Intime IPO weblink to get allotment status.
Final thoughts
Pentagon Rubber IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and do subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
