Matangi Rubber Limited IPO

IPO Details

• Open date: TBA
• Close Date: TBA
• Minimum Investment: To be updated
• Lot Size: TBA
• Price Range: TBA
• Listing: BSE SME
• Issue Size: 37,09,600 equity shares
• Listing Date: TBA

IPO Timeline

• Bidding Start: TBA
• Bidding Ends: TBA
• Allotment Finalisation: TBA
• Refund Initiation: TBA
• Demat Transfer: TBA
• Listing: TBA

About Matangi Rubber Limited

Incorporated in 2004 and headquartered in New Delhi, Matangi Rubber Limited is engaged in the manufacturing of tyre flaps, tubes, and rubber compounds for the automotive industry. The company’s tyre flaps and tubes are primarily used in commercial vehicles such as trucks, buses, and heavy utility vehicles. The company also manufactures tyres catering to two-wheeler and three-wheeler segments. Matangi Rubber operates five manufacturing facilities across Uttarakhand, Madhya Pradesh, and Tamil Nadu. The company undertakes contract manufacturing for large tyre producers and has a long-standing relationship with JK Tyre & Industries Limited, to which it supplies tyre flaps and tubes.

Matangi Rubber Limited IPO Overview

Matangi Rubber Limited’s initial public offering is a book-built issue comprising a fresh issue of up to 37,09,600 equity shares with a face value of ₹10 each. The issue is a pure fresh issue with no offer for sale component and will be listed on the BSE SME platform. The DRHP was filed with SEBI on September 22, 2025, and the exchange approval was received on December 18, 2025. The book-running lead manager for the issue is Sarthi Capital Advisors, and the registrar is Bigshare Services. The net proceeds from the fresh issue will be utilized towards repayment of certain outstanding loans (₹4,500 lakhs), funding capital expenditure for setting up a greenfield manufacturing facility for rubber recycling products in Bhind, Madhya Pradesh (₹1,905.88 lakhs), funding capital expenditure for setting up a greenfield facility for production of solid tyres in Bhind (₹843.50 lakhs), and general corporate purposes. The company’s shareholding pre-issue stands at 1,02,88,827 equity shares, which will increase to 1,39,98,427 equity shares post-issue.

Matangi Rubber Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	37,09,600 shares (aggregating up to ₹[.] Cr)
Fresh Issue	37,09,600 shares (aggregating up to ₹[.] Cr)
Offer for Sale (OFS)	Nil
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹10 per share
Listing Exchange	BSE SME
Shareholding pre-issue	1,02,88,827 shares
Shareholding post-issue	1,39,98,427 shares

Matangi Rubber Limited IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Matangi Rubber Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not more than 50% of the Offer
Retail Shares Offered	Not less than 35% of the Offer
NII (HNI) Shares Offered	Not less than 15% of the Offer

Matangi Rubber Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	₹7.74
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	17.99%
Net Asset Value (NAV)	₹46.81
Return on Equity (RoE)	16.53%
Return on Capital Employed (RoCE)	12.11%
EBITDA Margin	27.43%
PAT Margin	18.80%
Debt to Equity Ratio	1.12

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilized as per the details provided in the table below:

Particulars	Amount (in ₹ million)
Repayment/pre-payment of certain outstanding loans availed by the Company	450.00
Funding Capital Expenditure for greenfield rubber recycling products facility (Bhind, MP)	190.59
Funding Capital Expenditure for greenfield solid tyres facility (Bhind, MP)	84.35
General corporate purposes*	[●]

*To be determined upon finalisation of the Offer Price and updated in the Prospectus prior to filing with the RoC.

Matangi Rubber Limited Financials (₹ in Millions)

Particulars	December 31, 2025	March 31, 2025	March 31, 2024	March 31, 2023
Total Assets	2,445.08	2,061.13	1,201.25	732.05
Revenue from Operations	866.42	1,013.16	901.13	862.54
Profit After Tax	168.02	200.28	48.12	27.41
Reserves and Surplus	913.56	817.35	374.82	247.67
Total Borrowings	1,142.20	936.04	618.57	294.84
Total Liabilities*	1,428.62	1,206.94	799.22	462.42

Financial Status of Matangi Rubber Limited

SWOT Analysis of Matangi Rubber Limited

Strengths and Opportunities	Weaknesses and Threats
Experienced promoter with over 20 years of industry expertise	High customer concentration with dependency on JK Tyre
Long-standing relationship with JK Tyre & Industries Limited	Revenue concentration in Uttarakhand at 48.87%
Integrated manufacturing operations across five plants	Intensive working capital requirements
Diversification into tyre manufacturing for 2W and 3W segments	Susceptibility to raw material price fluctuations
Track record of consistent financial performance with PAT growth of 630%	Intense competition from large tyre manufacturers
India tyre inner tubes market valued at $351 million, growing at 6.6% CAGR	Customer concentration risk affecting revenue stability
Rubber recycling products market creating new revenue streams	Rising natural rubber prices impacting margins
Solid tyres segment offering diversification opportunities	Seasonality in automotive demand affecting production
Government initiatives supporting automotive and tyre industry	Regulatory compliance and environmental norms
Contract manufacturing model mitigating business risk	Technology obsolescence in manufacturing processes

Matangi Rubber Limited IPO Strengths

Experienced Promoter and Key Managerial Personnel

Matangi Rubber Limited is led by an experienced management team with over 20 years of collective expertise in the tyre and rubber industry. The company’s Promoter and Managing Director, Mr. Mohit Gupta, brings deep understanding of the dynamics of the tyre industry, and his role has been instrumental in the growth and development of the business. The expertise of the promoters and senior management team enables the company to comprehend and anticipate market trends, manage business operations and expansion, nurture customer relationships, and adeptly respond to shifts in the business landscape.

Track Record of Consistent Financial Performance

Matangi Rubber has delivered consistent financial performance over the years with healthy growth in revenue and profitability. The company generated consolidated revenue of ₹866.42 million for the period ended December 31, 2025, ₹1,013.16 million in Fiscal 2025, ₹901.13 million in Fiscal 2024, and ₹862.54 million in Fiscal 2023. Profit after tax surged to ₹200.28 million in Fiscal 2025 from ₹48.12 million in Fiscal 2024 and ₹27.41 million in Fiscal 2023, reflecting a sharp rise in profitability. The company’s net worth increased to ₹1,016.45 million as of December 31, 2025.

Long-Standing Relationships with Customers

Matangi Rubber has strong, long-standing relationships with its primary customer, JK Tyre & Industries Limited, to which it supplies tyre flaps and tubes. The long-term relationship signifies a foundation built on trust, reliability, and a consistent track record of delivering significant value. Such associations translate into repeat business and additional opportunities for growth and collaboration. The company has an agreement in place with JK Tyre, ensuring stability in revenue and mitigating business risk.

Business Model and Ability to Mitigate Operational Risk

Matangi Rubber’s competitive advantages are evident from its operational efficiency, facilitating timely deliveries and maintaining quality control measures. The company is engaged in contract manufacturing and job work to supply tyres, tyre flaps, and tubes to JK Tyre and other customers in the industry. The company possesses manufacturing expertise with over 20 years of experience, helping it to be recognized as a trusted partner for supply of flaps and tubes. The company has generated consolidated EBITDA of ₹237.67 million for the period ended December 31, 2025, and ₹308.87 million in Fiscal 2025.

More About Matangi Rubber Limited

Business Overview

Matangi Rubber Limited, established in 2004, is engaged in the manufacturing of tyre flaps, tubes, and rubber compounds for the automotive industry. The company’s tyre flaps and tubes are primarily used in commercial vehicles such as trucks, buses, JCB, and all heavy utility vehicles. The company also manufactures tyres catering to two-wheeler and three-wheeler segments.

Business Model

• Contract Manufacturing: The company produces tyre flaps for clients using its own raw materials and facilities, with products customized with the client’s logo.
• Job Work Services: The company converts raw materials provided by clients into tyre flaps or tubes at its plants, charging conversion fees as per agreed terms.
• Other Activities: The company occasionally trades rubber materials and provides support services to its key customer, JK Tyre & Industries Limited.

Manufacturing Facilities

Matangi Rubber operates five manufacturing facilities:

• Two plants at Selaqui, Dehradun, Uttarakhand
• Two plants at Bhind, Gwalior, Madhya Pradesh
• One plant at Gummidipoondi, Chennai, Tamil Nadu

Four plants are fully operational, with one undergoing trial runs. The company’s tyre tube manufacturing commenced commercial production on December 16, 2025.

Product Portfolio

The company’s product offerings include:

• Tyre flaps for commercial vehicles
• Tyre tubes for trucks, buses, and heavy vehicles
• Rubber compounds used in manufacturing rubber products
• Two-wheeler and three-wheeler tyres

Customer Relationships

Matangi Rubber has a long-standing relationship with JK Tyre & Industries Limited, to which it supplies tyre flaps and tubes. The company has an agreement in place with JK Tyre, ensuring stability in revenue and mitigating business risk. The company also provides support services to JK Tyre.

Credit Ratings

The company’s bank loan facilities are rated ‘ACUITE BBB’ (Stable) for long-term and ‘ACUITE A3+’ for short-term by Acuité Ratings & Research.

Industry Outlook

India Tyre and Rubber Products Market

The Indian tyre and tube industry has been continuously upgrading product quality to satisfy the requirements of Indian automotive manufacturers and the road conditions prevailing in the country. India’s natural rubber industry was valued at around USD 3 billion in 2025, with an annual average growth rate of 4%. The India rubber market is expected to grow significantly during the forecast period of 2025-2031, driven by rising demand from automotive and other industries.

Tyre Inner Tubes Market

The India tyre inner tubes market is estimated to be valued at around USD 351 million in 2025 and is expected to grow with a CAGR of 6.6% over the forecast period. The demand for tyre inner tubes in India is driven by increasing production of two and three-wheelers.

Tyre Flaps Market

The global tyre flaps market is poised to witness significant growth, with the market size anticipated to escalate from USD 2.5 billion in 2023 to approximately USD 4.7 billion by 2032, marking a CAGR of 7.2%. The market is expected to grow from 1,087.2 USD Million in 2025 to 1,500 USD Million by 2035.

Key Growth Drivers

• Automotive Production Growth: Increasing production of two-wheelers, three-wheelers, and commercial vehicles driving demand for tyres, tubes, and flaps
• Replacement Market: The replacement market for tyres and tubes remains a significant demand driver
• Infrastructure Development: Government investments in road infrastructure and commercial vehicle growth
• Two-Wheeler Dominance: India being the largest two-wheeler market globally driving demand for tyres and tubes
• Formalisation of Sector: Increasing shift towards organised manufacturing and quality standards

Natural Rubber Market

India’s natural rubber production during April 2025 increased by 10.0% year-over-year to 44,000 tonnes. The manufacturing industry consumed 118,000 tonnes of natural rubber during April 2025, reflecting the growing demand from the tyre manufacturing sector.

How Will Matangi Rubber Limited Benefit

• The company’s established position in tyre flaps and tubes manufacturing positions it to benefit from the India tyre inner tubes market valued at USD 351 million, growing at 6.6% CAGR.
• The global tyre flaps market projected to grow from USD 1.09 billion in 2025 to USD 1.50 billion by 2035 creates significant opportunities for the company’s core business.
• The company’s long-standing relationship with JK Tyre & Industries Limited provides stable revenue visibility and mitigates business risk.
• The recent diversification into tyre manufacturing for two-wheeler and three-wheeler segments opens new revenue streams in India’s largest automotive segment.
• The proposed expansion into rubber recycling products and solid tyres manufacturing will diversify the product portfolio and create new growth avenues.
• The company’s integrated manufacturing operations across five plants provide operational flexibility and cost efficiencies.
• The strong financial track record with PAT growth of over 630% from Fiscal 2023 to Fiscal 2025 demonstrates the company’s ability to scale profitability.
• The growing replacement market for tyres and tubes in India’s large vehicle parc provides sustained demand for the company’s products.
• The company’s contract manufacturing model reduces business risk and provides predictable revenue streams.
• Government initiatives supporting automotive manufacturing and infrastructure development create a favourable demand environment.

Peer Group Comparison

Name of Company	Face Value (₹)	Sales (₹ in Lakhs)	EPS (₹)	P/E Ratio	RoNW (%)
Matangi Rubber Limited	10.00	10,630.26	10.99	–	31.95
Peer Group
Ceat Limited	10.00	13,23,542.00	116.85	27.22	10.79
TVS Srichakra Limited	10.00	3,26,004.00	26.92	133.70	1.73
Tolins Tyre Limited	5.00	29,500.30	10.81	9.50	11.92

Key Strategies for Matangi Rubber Limited

Diversification into Tyre Manufacturing

Matangi Rubber has diversified its operations to include the manufacturing of two and three-wheeler tyres. The company recently started commercial production of tyres from December 27, 2025, at its manufacturing facility at Bhind, Madhya Pradesh. With its experience in the tyre and rubber industry, the company is confident in its ability to deliver superior rubber tyres to the market. The manufacturing capabilities have been carefully developed to ensure efficiency and quality, enabling the company to expand its footprint and capture new market segments.

Establishing New Plant for Tube Manufacturing

The company has recently set up a manufacturing facility for producing tyre tubes at Selaqui, Dehradun, Uttarakhand, adjacent to the existing tyre flap manufacturing plant. Commercial production of tyre tubes at this plant started on December 16, 2025. Utilizing its current expertise and experience in the tyre and rubber industry, the company envisages increasing its revenue share from tube manufacturing activity.

Diversification into Recycled Rubber

Matangi Rubber is intending to diversify its operations into recycling of rubber. This move positions the company favorably in terms of sourcing primary raw materials, which will be readily available at a cost-effective price. Considering the company’s core business as a manufacturer of rubber products, this new vertical will afford an advantage in the procurement of raw materials and facilitate the realization of economies of scale, enhancing overall operational efficiency and competitiveness in the market.

Expansion and Capacity Enhancement

The company is setting up a greenfield manufacturing facility for rubber recycling products in Bhind, Madhya Pradesh, with a capacity of about 3,910 MTPA, and a solid tyres unit with an estimated capacity of 603 MTPA. Both plants are expected to commence commercial operations by 2027. This expansion will enable the company to diversify its product portfolio and enhance production capabilities.

Strengthening Customer Relationships

Matangi Rubber continues to focus on strengthening its long-standing relationships with customers, particularly JK Tyre & Industries Limited. The long-term relationships signify a foundation built on trust, reliability, and a consistent track record of delivering significant value, translating into repeat business and additional opportunities for growth and collaboration.

FAQs

How can I apply for Matangi Rubber Limited IPO?

You can apply via HDFCSky using UPI-based ASBA (Application Supported by Blocked Amount) through your bank account.

What is the total issue size of Matangi Rubber Limited IPO?

The IPO comprises a fresh issue of 37,09,600 equity shares with no offer for sale component.

When was the DRHP filed with SEBI for Matangi Rubber Limited IPO?

The Draft Red Herring Prospectus was filed with SEBI on September 22, 2025.

On which exchange will Matangi Rubber Limited shares be listed?

The equity shares are proposed to be listed on the BSE SME platform.

What is the face value of Matangi Rubber Limited equity shares?

The face value of each equity share is ₹10 per share.

Infographic Content

Matangi Rubber Limited IPO Highlights

Matangi Rubber Limited is a manufacturer of tyre flaps, tubes, tyres, and rubber compounds for the automotive industry, operating five manufacturing facilities across Uttarakhand, Madhya Pradesh, and Tamil Nadu with a long-standing relationship with JK Tyre & Industries.

• Offer Size:37,09,600 equity shares (Fresh Issue only; No OFS component)
• Purpose:The net proceeds will be utilized for repayment of borrowings (₹450 million), funding capital expenditure for rubber recycling products facility (₹190.59 million), funding capital expenditure for solid tyres facility (₹84.35 million), and general corporate purposes.
• Financials (Fiscal Year ended March 31, 2025):Revenue from Operations ₹1,013.16 million; Profit After Tax ₹200.28 million; PAT Margin 18.84%; EPS ₹10.99
• Listing:SME IPO on BSE SME