Pentagon Rubber Limited brings its IPO on the 26th June 2023

Business

New Delhi (India), June 21: Pentagon Rubber Limited, a Punjab based leading manufacturer of rubber conveyor belts, transmission belts, rubber sheets and elevator belts has announced its IPO for 23,10,000 shares with a face value of Rs. 10 per share and equity price band per share will be Rs 65 to Rs. 70. The lot size will be 2000 shares. Out of 23,10,000 shares, 1,16,000 equity shares will be reserved for the market maker quota, 10,94,000 shares will be reserved for QIB, 3,30,000 shares for HNI quota and 7,70,000 shares for the retail quota. The issue opens for the anchors on the 23rd of June, 2023 and for the public on the 26th of June, 2023 and closes on the 30th of June, 2023. It will subsequently be listed on the NSE Emerge platform. The leading manager to the issue is Beeline Capital Advisors Private Limited. 

The proceeds of the issue are to be utilized for 

  1. To meet the working capital requirements
  2. General Corporate Purpose
  3. To meet the issue expenses

Pentagon Rubber Limited is a Punjab based leading manufacturer of rubber conveyor belts, transmission belts, general purpose belts, super abrasion belts, heat fire and oil resistance belts, pipe conveyor belts, chevron conveyors, rubber sheets and elevator belts. The manufacturing unit of the company is located in Dera Bassi, Punjab and is an ISO 9001:2015 certified company. It has installed one of the longest conveyor belting presses in India, with a production capacity of 21mtr in a single stroke. This technology allows it to produce conveyor rubber belting up to 3150KN/m, making them one of the top manufacturers in India. The production capacity is over 300 sq km of conveyor rubber belt per year and it has a modern laboratory of international standards that can produce conveyor belts as per DIN, BS, IS, ISO, SABS, AS, GOST, and CAN standards. It has a complete QAP & QC system that is followed in the manufacturing process, which includes rigorous and complete testing of in-process belts and finished belts. The manufacturing plant is managed by a team of experienced professionals. It has invested in top-of-the-line infrastructure and facilities to ensure the highest quality products. Its business has expanded domestically & globally through its approved vendor status with various government & multinational corporations and importers, and it has earned a strong reputation and a loyal client base domestically & across many countries. The company has been awarded the Export Merit Award, Special Domestic Sales Award and Top Domestic Sales award by All India Rubber Industries Association. 

Pentagon Rubber Limited has registered a strong financial growth over the years. Its revenue from operations stood at Rs 2996.12 lakhs for the period ending 31st  December 22, while it registered an EBITDA of Rs 381.05 lakhs and PAT of Rs 215.86 lakhs for the same period.  

The company constantly endeavours to improve the manufacturing process and will increase manufacturing activities to optimize the utilization of resources. It has invested significant resources and intends to further invest in its activities to develop customized systems and processes to ensure effective management control. It also intends to continue to build on its inclusive culture to ensure its employees remain engaged and committed to delivering exceptional service. The company aims to continue to improve ongoing operational effectiveness and efficiencies to achieve cost reductions including overheads. It believes that this can be done through continuous business process review and timely corrective measures in case of diversion and technology upgradation with proper analytics base. As a result of these measures, the company will be able to increase its market share and profitability. 

Mr. Ashish Jain, Mr. Anil Jain, Mr. Saurabh Jain and Mr. Lalit Jain are the promoters of the issue and have an experience of 23, 37, 19 and 27 years respectively.

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