Pentagon Rubber IPO GMP, Price, Dates & Allotment Details 2023
Introduction
The Pentagon Rubber IPO will open on June 26 and close on June 30, 2023. As per the DRHP filed with SEBI, the company intends to raise approximately ₹ 16.17 crores through this public offering, consisting of 23.10 lakhs shares with a face value of ₹ 10 each, which will be issued at a price of ₹ 65 to ₹ 70 per share.
Pentagon Rubber Limited (“the Company”)
Pentagon Rubber Limited was originally incorporated in 2004. The company has ISO 9001:2015 certification and manufactures rubber conveyor belts, transmission belts, rubber sheets, and elevator belts.
Company products are ever-evolving and continually perfected using the latest developments in raw materials. Its competence and expertise in business-to-business partnerships in several areas are carried from its material handling and ore transportation systems across to complete system integration, and they offer products that meet the quality benchmarks of various industries.
With a wide-spread network of stockists and importers, they have expanded their business relationships in many countries. The company has installed one of India’s longest conveyor belt presses, with a production capacity of 21 metres in a single stroke. This technology allows the company to produce conveyor rubber belting up to 3150 KN/m, making it one of the top manufacturers in India.
Objects of the Issue,
The company proposes utilising the Fresh Issue’s net proceeds towards funding the following objects:
- To meet working capital requirements, and
- General corporate expenses.
Financial Highlights (Restated)
| Particulars | Period ended on 31st Dec. 2022 | FY 2021-22 | FY 2020-21 | FY 2019-20 |
|---|---|---|---|---|
| Net Worth | 770 | 554 | 246 | 135 |
| Total Assets | 2,957 | 2,802 | 2,589 | 2,133 |
| Reserve & Surplus | 230 | 154 | (154) | (265) |
| Total Borrowings | 1,670 | 1,759 | 1,649 | 1,245 |
| Total Revenue | 2,998 | 3,512 | 2,320 | 1,939 |
| Profit After Tax | 216 | 309 | 110 | 94 |
IPO details
As per the DRHP filed with SEBI, 23.10 lakh shares will be offered as a fresh issue in the NSE SME segment. The face value of the shares is ₹ 10. The market maker would receive 116,000 shares of the offering. While Beeline Capital Advisors Pvt Ltd will be the lead manager for the IPO, Link Intime India Private Ltd will be the registrar. It will be a book-built issue, so there will be a price band rather than a price point, and the actual issue price will be discovered by building the book.
| Issue Type | Book Built Issue IPO |
| IPO Price | ₹ 65 to ₹ 70 per share |
| Face Value | ₹ 10 per share |
| Market Lot | 2,000 shares |
| Issue Size | 2,310,000 shares (aggregating up to ₹ 16.17 crores) |
| Fresh Issue | 2,310,000 shares (aggregating up to ₹ [.] crores) |
| Listing At | NSE SME |
| Company Promoters | Mr Anil Jain, Mr Lalit Jain, Mr Ashish Jain, and Mr Saurabh Jain |
Market Maker
| Market maker | Sunflower Broking |
| Market maker portion | 116,000 shares |
IPO Reservation
| Categories | No. of shares offered |
| QIB shares offered | Not more than 50% of the net offer |
| NII (HNI) shares offered | Not less than 15% of the offer |
| Retail shares offered | Not less than 50% of the offer |
GMP: Pentagon Rubber IPO
GMP, or grey market premium, is available on this page. The IPO GMP is updated on a day-to-day basis during the running period of the IPO, due to which the GMP rates fluctuate and stabilise after some time. GMP rates are not 100% guaranteed. Please click here for GMP details.
Tentative Dates: Pentagon Rubber IPO
The issue opens for subscription on June 26, 2023, and closes for subscription on June 30, 2023 (both days inclusive). The basis of allotment will be finalised on July 5, 2023, and the refunds will be initiated on July 6, 2023. In addition, the demat credits are expected to happen on July 7, 2023, and the stock will be listed on the NSE SME on July 10, 2023. The UPI mandate confirmation cut-off time is 5:00 PM on the issue closing day.
| Opening Date | June 26, 2023, |
| Closing Date | June 30, 2023 |
| Basis of Allotment | July 5, 2023 |
| Initiation of Refunds | July 6, 2023 |
| A credit of shares to Demat A/c | July 7, 2023 |
| Listing Date | July 10, 2023 |
Lot Size
The lot size of the Pentagon Rubber IPO is 2,000 shares. A retail-individual investor can apply for up to 1 lot, i.e. 2,000 shares of ₹ 140,000.
| Applications | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Minimum) | 1 | 2,000 | ₹ 140,000 |
| Retail (Maximum) | 1 | 2,000 | ₹ 140,000 |
| HNI (Minimum) | 2 | 4,000 | ₹ 280,000 |
Promoters Holdings
| Pre-issue Shares Holdings | 100% |
| Post-issue Shares Holdings | 70.04% |
SWOT Analysis
| STRENGTHS | WEAKNESSES |
|---|---|
| 1. Experienced Promotors with decades of experience in the Rubber Industry. 2. Professionally Qualified & Skilled Promoters & Staff, loyal team. 3. Cordial Relationship of many years with Customers. 4. Huge Customer base of various Industries both Government & Multinational. 5. Ability to control costs due to legacy business. | 1. Strict policies of clients and Audit controls may pose hurdles. 2. Working-Capital Intensive Business. |
| OPPORTUNITIES | THREATS |
| 1. Tremendous Growth in the world mining industry of Rare metals, EV battery metals & Coal. 2. Huge Domestic Growth Potential in its segment with major investment from the Government of India in Infrastructure Development. 3. Power and cement industries also aid growth in the metals and mining sector. 4. Fertilizer Sector adding growth in Agriculture sector. 5. Possibility of providing associated products along with main products offered. | 1. Increased Competition from Local & Big Players. 2. Labour availability. 3. Change in government policies. |
Miscellaneous Information
| Download Prospectus (PDF) | IPO RHP |
| Company Contact Information | Pentagon Rubber Limited Gulabgarh Road, Village Behra Dist.S.A.S. Nagar, Derabassi, Mohali – 140507 Phone: +91-9816610646 Email: corporate@pentagonrubber.com Website: https://pentagonrubber.com/ |
| IPO Registrar | Link Intime India Private Ltd Phone: +91-22-4918 6270 Email: pentagonrubber.ipo@linkintime.co.in Website: https://linkintime.co.in/ |
| IPO Lead Manager(s) | Beeline Capital Advisors Pvt Ltd |
FAQs
The Pentagon Rubber IPO price is ₹ 65 to ₹ 70 per share.
The minimum investment size is one lot for retail investors. One lot of the Pentagon Rubber IPO contains 2,000 shares of ₹ 140,000.
The finalisation of the basis of allotment for the Pentagon Rubber IPO will be done on July 5, 2023, and the allotted shares will be credited to your demat account by July 7, 2023. Check the Pentagon Rubber IPO allotment status.
The Pentagon Rubber IPO shares listing date is July 10, 2023.
The investors’ portion for QIB is 50% of the Net offers, NII (HNI) is 15%, and retail is 35% of the offer.
