Matangi Rubber Receives SEBI Nod for IPO to Raise Funds for Debt Repayment and Expansion — September 30, 2026

Delhi-headquartered tyre and rubber products manufacturer Matangi Rubber Limited has received observation from the capital markets regulator, the Securities and Exchange Board of India (SEBI), granting it the regulatory clearance to launch its Initial Public Offering (IPO).

The company, which filed its Draft Red Herring Prospectus (DRHP) earlier, proposes to list its equity shares on both the National Stock Exchange of India (NSE) and BSE.

Issue Structure and Key Participants

The public issue consists of a mix of primary share issuance and an offer for sale:

• Total Offer Size: Up to 72,76,981 equity shares of face value ₹10 each.
• Fresh Issue: Up to 57,61,831 equity shares.
• Offer for Sale (OFS): Up to 15,15,150 equity shares offloaded by existing shareholders.

Under the OFS component, promoter selling shareholder Vandana Rubber and Chemicals Private Limited will sell up to 13,63,000 equity shares, while promoter Radhika Gupta will offload up to 2,150 shares. Other existing shareholders, including Anju Khanna (up to 60,000 shares), Priyanka Khanna (up to 60,000 shares), and Pratyush Handa (up to 30,000 shares), will also participate in the sale.

Sarthi Capital Advisors Private Limited is acting as the sole Book Running Lead Manager for the offering, while Bigshare Services Private Limited has been appointed as the registrar to the issue.

Deployment of Proceeds

According to the draft offer documents, Matangi Rubber plans to utilise the net proceeds from the fresh issuance to de-leverage its balance sheet and expand its operational footprint:

• Debt Repayment: Approximately ₹45 crore will be allocated toward the repayment or pre-payment, in full or in part, of certain outstanding borrowings availed by the company.
• Rubber Recycling Facility: ₹19.05 crore will be deployed toward funding capital expenditure requirements to set up a greenfield manufacturing plant for rubber recycling products in Bhind, Madhya Pradesh.
• Solid Tyres Unit: ₹8.40 crore will be allocated toward setting up a greenfield facility for the production of solid tyres in Bhind, Madhya Pradesh.
• General Corporate Purposes: The remainder of the net fresh proceeds will be utilised for general corporate requirements.

Business Profile and Market Presence

Established in 2004, Matangi Rubber manufactures tyres, tubes, tyre flaps, and custom rubber compounds across multiple production facilities. The company operates five manufacturing units situated across Selaqui (Dehradun, Uttarakhand), Bhind (Madhya Pradesh), and Gummidipoondi (Chennai, Tamil Nadu).

Its commercial product basket includes flaps and inner tubes engineered primarily for heavy commercial vehicles, trucks, and buses, alongside a tyre portfolio catering to two-wheelers and three-wheelers. In addition to proprietary manufacturing, Matangi Rubber operates as a contract manufacturer and job-work provider for major domestic tyre makers, including support services for JK Tyre & Industries. The company shares the domestic operating landscape with listed tyre and tyre component peers such as CEAT, TVS Srichakra, and Tolins Tyre.

With regulatory clearance secured, the company is expected to finalise its issue dates, price band, and lot size in consultation with the merchant bankers, subject to market conditions.

Tags: Matangi Rubber SEBI BSE NSE Auto Components IPO