Conveyor belt manufacturer, Pentagon Rubber, is set to launch its initial public offering (IPO) next week on Monday, June 26.
The IPO will solely issue new shares, with no shares available for sale under the Offer for Sale (OFS) window.
Following the successful IPO, Pentagon Rubber’s shares will be listed on the SME platform of NSE, known as NSE SME.
Gray Market Update
In the gray market, the IPO is currently experiencing a GMP (grey market premium) of Rs 18, which represents a premium of approximately 26% above the upper price of the IPO’s price band.
However, market experts advise making investment decisions based on the company’s financials and fundamentals, rather than relying solely on signals from the gray market.
Below, you’ll find all the important information pertaining to this IPO.
Pentagon Rubber IPO Details
The IPO of Pentagon Rubber, valued at Rs 16.17 crore, will be open for subscription from June 26 to June 30.
This offering will issue 23.10 lakh new equity shares with a face value of Rs 10 each.
Investors can participate in this IPO within the price range of Rs 65-70 per share, with a minimum investment of 2000 shares.
The allotment of shares is scheduled to be finalized on July 5, following which the shares will be listed on NSE SME on July 10. The registrar for this IPO is Intime India.
The funds raised through the issuance of new shares will be utilized by the company to fulfill working capital requirements and for general corporate purposes.
About Pentagon Rubber
Pentagon Rubber Limited specializes in manufacturing rubber conveyor belts, transmission belts, rubber sheets, and elevator belts.
Its plant is located in Dera Bassi, which is approximately 25 km away from Chandigarh in Punjab.
The company is one of the largest manufacturers of conveyor belting presses in the country, capable of producing 21 meters at a time.
With an annual capacity of manufacturing over 300 sq km of conveyor rubber belts, Pentagon Rubber has established itself as a key player in the industry.
Financial Performance
Pentagon Rubber has consistently witnessed an increase in profits, except for the financial year 2023.
In FY 2020, the company recorded a net profit of Rs 93.81 crore, which rose to Rs 1.10 crore in the subsequent financial year, and further surged to Rs 3.09 crore in FY 2022.
However, in the most recent financial year, 2023, the net profit declined to Rs 2.16 crore.
