Pentagon Rubber, which makes rubber conveyor belts, transmission belts, rubber sheets and elevator belts, will hit the capital market to raise around Rs 16 crore through an initial public offer (IPO).
Mohali-headquartered Pentagon Rubber, an engineering components company, has set a price band of Rs 65-70 per share for its IPO, comprising an issue of 23.10 lakh equity shares of Rs 10 each. The issue will open on June 26 and close on June 30. “The company’s issue size will be Rs 16.17 crore at the upper price band,” a statement said. The IPO proceeds will be used to meet the working capital requirements, general corporate purpose and issue expenses. The additional working capital will help in the expansion of its business activities.
The shares will be listed on NSE-Emerge. Beeline Capital Advisors Pvt Ltd is the book-running lead manager to the issue, and Link Intime India Pvt Ltd is the registrar to the issue. According to the red herring prospectus, the funds raised through IPO will help the company to increase its turnover by 55-60 per cent. The company is already expanding its production capacity with the help of internal accruals and borrowings. The expanded capacity by December 2023 will be 6,00,000 metres or up 2.5 times the existing capacity of 2,40,000 metres.
For the year ended March 31, 2023, Pentagon Rubber’s total revenue stood at Rs 35.12 crore. The company’s EBITDA was Rs 4.29 crore and reported a net profit of Rs 3.09 crore. Incorporated in 2004, Pentagon Rubber — promoted by Anil Jain, Lalit Jain, Ashish Jain and Saurabh Jain — has a manufacturing unit at Dera Bassi, Punjab.
