Pentagon Rubber Limited Announces IPO: 23,10,000 Shares at Rs. 65-70 Per Share

New Delhi, India, June 21 – Pentagon Rubber Limited, a leading manufacturer based in Punjab, specializing in rubber conveyor belts, transmission belts, rubber sheets, and elevator belts, is all set to launch its Initial Public Offering (IPO) of 23,10,000 shares with a face value of Rs. 10 per share. The price band for the IPO is set between Rs. 65 and Rs. 70 per share. The lot size for the issue will be 2,000 shares.

Out of the total 23,10,000 shares, the allocation will be as follows:

  • 1,16,000 shares reserved for Market Maker Quota
  • 10,94,000 shares reserved for Qualified Institutional Buyers (QIB)
  • 3,30,000 shares reserved for High Net-Worth Individuals (HNI)
  • 7,70,000 shares reserved for Retail Quota

The IPO opens for anchor investors on June 23, 2023, and for the public on June 26, 2023, closing on June 30, 2023. The shares will subsequently be listed on the NSE Emerge platform. The Lead Manager for this issue is Beeline Capital Advisors Pvt. Ltd.

Proceeds from the IPO:

The funds raised through this IPO will be used for the following purposes:

  • To meet working capital requirements
  • General corporate purposes
  • To meet issue expenses

About Pentagon Rubber Limited

Founded in Punjab, Pentagon Rubber Limited is a premier manufacturer of a wide range of rubber products, including conveyor belts, transmission belts, general purpose belts, super abrasion resistant belts, heat fire and oil resistance belts, pipe conveyor belts, chevron conveyors, rubber sheets, and elevator belts. The company’s state-of-the-art manufacturing unit is located in Dera Bassi, Punjab, and is ISO 9001:2015 certified.

Pentagon Rubber has one of the longest conveyor belting presses in India, with a production capability of 21 meters in a single stroke, allowing the production of conveyor rubber belting up to 3150 KN/m. The company boasts a production capacity of over 300 sq km of conveyor rubber belts annually. Its modern laboratory meets international standards and produces conveyor belts as per various international specifications such as DIN, BS, IS, ISO, SABS, AS, GOST, and CAN.

The company has built a strong reputation in the market, both domestically and globally, due to its commitment to quality and reliable delivery. Pentagon Rubber is a trusted vendor for various government and multinational companies and has earned accolades including the Export Excellence Award, Special Domestic Sales Award, and Top Domestic Sales Award from the All India Rubber Industries Association.

Financial Performance

Pentagon Rubber Limited has shown impressive financial growth over the years. For the period ending December 31, 2022, the company reported a revenue from operations of Rs. 2996.12 lakhs, an EBITDA of Rs. 381.05 lakhs, and a PAT of Rs. 215.86 lakhs.

Future Plans and Vision

Pentagon Rubber is committed to continually improving its manufacturing processes. The company plans to enhance production activities, optimize resource utilization, and invest in custom-built systems to ensure effective management and control. These efforts will help the company achieve cost reductions and improved operational efficiencies.

Through technology upgrades and process reviews, Pentagon Rubber aims to expand its market share and improve profitability, ensuring sustained growth and success.

Promoters and Leadership

The promoters of Pentagon Rubber Limited are Mr. Ashish Jain, Mr. Anil Jain, Mr. Saurabh Jain, and Mr. Lalit Jain, who bring years of combined experience to the company—23 years, 37 years, 19 years, and 27 years, respectively.

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