Pentagon Rubber
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Jun 2023 – 30 Jun 2023
- Listing date
- 07 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹70 per share
- Lot size
- 2,000 shares
- Issue type
- Book Building issue
- Total issue size
- ₹16.17 Cr
- Market cap at offer price
- ₹53.97 Cr
- Promoter holding
- 100.00% → 70.04% pre-issue → post-issue
- ISIN
- INE0ORS01017
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Beeline Capital Advisors Pvt.Ltd.
- Registered office
- Gulabgarh Road, Village Behra Dist., S.A.S.Nagar, Derabassi, Punjab
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 6,56,000 | — | — |
| Market maker | 1,16,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹70
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,40,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,80,000 |
| S-HNI (max) | 7 | 14,000 | ₹9,80,000 |
| B-HNI (min) | 8 | 16,000 | ₹11,20,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.83 | — |
| P/E (×) | 18.28 | — |
| Market cap | — | ₹53.97 Cr |
Key performance indicators
- Return on net worth
- 55.67%
- ROCE
- 27.16%
- Debt / equity
- 2.17
- PAT margin
- 8.80%
- NAV per share
- ₹13.86
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Pentagon Rubber
Pentagon Rubber Limited was originally incorporated on April 26, 2004 as 'Pentagon Rubber Private Limited' in Punjab and was converted into a public limited company vide certificate dated December 28, 2022. Headquartered at Gulabgarh Road, Derabassi, Mohali (Punjab) with a leased branch office in New Delhi, the ISO 9001:2015-certified company manufactures rubber conveyor belts (general purpose, super abrasion, heat/fire/oil resistant, pipe conveyor and chevron belts), transmission belts, elevator belts and technical rubber sheets at its Dera Bassi plant, which has installed one of the longest conveyor belting presses in India (21 m in a single stroke, producing belts up to 3150 KN/m) with an installed capacity of 240,000 metres. It earns money through order-driven business-to-business sales of its products — roughly 65% from rubber belting and 35% from rubber chemicals in the nine months ended December 31, 2022 — via registration as an approved vendor with Maharatna/Navratna/Miniratna PSUs for government tenders, OEM/direct-vendor supply to MNCs and large corporates, a nationwide dealer network for replacement markets, and direct exports to over 25 countries (exports were 2.32% of revenue in the nine months ended December 31, 2022). The company is promoted by Ashish Jain, Anil Jain, Saurabh Jain and Lalit Jain, who together held 91.53% of the paid-up capital pre-issue, and had 63 employees (including directors) as on December 31, 2022. Revenue from operations was ₹3,502.65 lakhs in FY2022 (PAT ₹308.66 lakhs) and ₹2,996.12 lakhs for the nine months ended December 31, 2022 (PAT ₹215.86 lakhs).
Company Analysis
from RHPPentagon Rubber Limited is an ISO 9001:2015-certified Indian manufacturer of rubber conveyor belts, transmission belts, rubber sheets and elevator belts for industrial material handling across sectors such as mining, cement, power and steel.
Pentagon Rubber Limited was originally incorporated on April 26, 2004 as 'Pentagon Rubber Private Limited' in Punjab and was converted into a public limited company vide certificate dated December 28, 2022. Headquartered at Gulabgarh Road, Derabassi, Mohali (Punjab) with a leased branch office in New Delhi, the ISO 9001:2015-certified company manufactures rubber conveyor belts (general purpose, super abrasion, heat/fire/oil resistant, pipe conveyor and chevron belts), transmission belts, elevator belts and technical rubber sheets at its Dera Bassi plant, which has installed one of the longest conveyor belting presses in India (21 m in a single stroke, producing belts up to 3150 KN/m) with an installed capacity of 240,000 metres. It earns money through order-driven business-to-business sales of its products — roughly 65% from rubber belting and 35% from rubber chemicals in the nine months ended December 31, 2022 — via registration as an approved vendor with Maharatna/Navratna/Miniratna PSUs for government tenders, OEM/direct-vendor supply to MNCs and large corporates, a nationwide dealer network for replacement markets, and direct exports to over 25 countries (exports were 2.32% of revenue in the nine months ended December 31, 2022). The company is promoted by Ashish Jain, Anil Jain, Saurabh Jain and Lalit Jain, who together held 91.53% of the paid-up capital pre-issue, and had 63 employees (including directors) as on December 31, 2022. Revenue from operations was ₹3,502.65 lakhs in FY2022 (PAT ₹308.66 lakhs) and ₹2,996.12 lakhs for the nine months ended December 31, 2022 (PAT ₹215.86 lakhs).
Objects of the Issue
- To Meet Working Capital Requirement ₹1200.00 Lakhs p.87
- General Corporate Purposes p.88
- To Meet the Issue Expenses (Public Issue Expenses) p.88
Issue Structure
- Total Issue
- 23,10,000 Equity Shares aggregating to [●] Lakhs
- Fresh Issue
- 23,10,000 Equity Shares aggregating up to [●] Lakhs
- Offer for Sale
- Nil
- Face Value
- ₹10/- each
Business Model
Order-driven B2B manufacturing: the company produces rubber conveyor belts, transmission/elevator belts, rubber sheets and rubber chemicals at its Dera Bassi (Punjab) plant and earns revenue from their sale through government procurement/tenders (registered approved vendor with various Maharatna, Navratna & Miniratna PSUs), OEM/direct-vendor registrations with MNCs and major corporate groups, a dealer network serving the replacement market and smaller projects, and direct exports to buyers across the globe; rubber belting contributed ₹1,949.57 lakhs (65.07%) and rubber chemicals ₹1,043.94 lakhs (34.84%) of revenue from operations for the period ended December 31, 2022.
Business Segments
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anil Jain | Promoter | 13.91% | 9.74% |
| Lalit Jain | Promoter | 31.61% | 22.14% |
| Ashish Jain | Promoter | 16.68% | 11.68% |
| Saurabh Jain | Promoter | 29.33% | 20.54% |
| Vasudha Jain | Promoter Group | 1.71% | 1.20% |
| Sumeesh Jain | Promoter Group | 4.00% | 2.80% |
| Gaurav Jain | Promoter Group | 2.76% | 1.93% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.