Pentagon Rubber IPO: GMP, subscription, issue details, & more
The eagerly anticipated initial public offering (IPO) of Pentagon Rubber has commenced its subscription phase on June 26, and investors have until June 30 to participate. The company aims to secure a listing on NSE Emerge, a platform endorsed by the NSE that caters to small and medium-sized enterprises as well as startups.
On the first day of the IPO, Pentagon Rubber witnessed a subscription rate of 4.20 times, with the retail portion oversubscribed by 5.34 times and the QIB category by 4.74 times. By the second day, the subscription rate soared to an impressive 13.64 times, with the retail portion experiencing an overwhelming 20.20 times oversubscription.
According to data from chittorgarh.com, as of June 28, 2023, the Pentagon Rubber IPO has garnered a subscription rate of 25.61 times. The retail category subscription rate reached an impressive 41.01 times, while the QIB and NII categories recorded rates of 8.65 times and 12.19 times, respectively.
key highlights of the Pentagon Rubber IPO:
Grey Market Premium (GMP):
Currently, the grey market premium for Pentagon Rubber stands at ₹25.
Issue Size:
Through this IPO, the company plans to offer 2,310,000 equity shares as part of a fresh issue, with a total value of ₹16 crore.
Price Band:
Pentagon Rubber has set a price band of ₹65-70 per share for its IPO.
Issue Availability:
The IPO opened on June 26, 2023, and will close on June 30, 2023.
Listing:
The shares will be listed on NSE’s EMERGE platform.
Proceeds:
The funds raised from the IPO will be allocated towards meeting the company’s working capital requirements, general corporate purposes, and issue expenses. The additional working capital will facilitate the expansion of Pentagon Rubber’s business activities. As per the red herring prospectus, the IPO funds are expected to contribute to a projected 55-60% increase in the company’s turnover.
Financial Data:
For the fiscal year ending March 31, 2023, Pentagon Rubber reported a total revenue of ₹35.12 crore. The company’s EBITDA amounted to ₹4.29 crore, with a net profit of ₹3.09 crore.
Lead Manager:
Beeline Capital Advisors Pvt Ltd is serving as the book-running lead manager for the IPO, while Link Intime India Pvt Ltd is acting as the registrar.
Established in 2004, Pentagon Rubber, founded by Anil Jain, Lalit Jain, Ashish Jain, and Saurabh Jain, operates a manufacturing unit in Dera Bassi, Punjab.
About Pentagon Rubber:
Established in 2004, Pentagon Rubber Limited specializes in manufacturing Rubber Conveyor belts, Transmission belts, Rubber Sheets, and Elevator belts. Located in Dera Bassi, Punjab, just 25 km away from Chandigarh City, Pentagon Rubber Limited’s manufacturing unit features one of India’s most advanced conveyor belting presses. With an impressive production capacity of 21 meters in a single stroke, the unit can produce over 300 square kilometers of conveyor rubber belts annually. The company takes pride in its cutting-edge laboratory, which adheres to international standards and is capable of manufacturing conveyor belts in compliance with DIN, BS, IS, ISO, SABS, AS, GOST, and CAN standards.
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