Matangi Rubber Limited IPO

    Summary:


    Matangi Rubber Limited is a New Delhi-based maker of tyres, tyre flaps, tubes, and rubber compounds. It was set up in 2004 and became a public limited company in 2024. The company acquired MG Industries Limited and now runs seven manufacturing units across Uttarakhand, Madhya Pradesh, and Tamil Nadu. Profit and EBITDA grew strongly between FY2023 and FY2025. The company benefits from its tie-up with JK Tyre & Industries and has plans to expand capacity. Key risks include customer concentration, new facility execution, raw material costs, and no direct listed peers for comparison.

    Matangi Rubber IPO: Files DRHP for Fresh Issue

    India’s automotive rubber parts industry is a key player in the manufacturing of two-wheeler, three-wheeler and commercial vehicle sectors. It also handles rubber compounding and tyre recycling. Industry trends, as per the Draft Red Herring Prospectus (DRHP) indicate increasing demand for tyre flaps, tubes and rubber compounds. The growth drivers include higher vehicle production, replacement demand and more contract manufacturing work from tyre companies.

    Matangi Rubber Limited has submitted its Draft Red Herring Prospectus (DRHP) to SEBI for raising funds through an IPO. The company manufactures tyres, tyre flaps, tubes and rubber compounds. It has just bought MG Industries Limited. This deal has enhanced its manufacturing base and contract manufacturing capability.

    In this article, we cut through the jargon to give you the key facts from the DRHP.

    IPO Details

    ParticularsDetails
    IPO TypeBook Built Issue
    IPO Open DateTo be announced
    IPO Close DateTo be announced
    Face Value₹10 per equity share
    Price BandTo be announced
    Lot SizeTo be announced
    Fresh IssueUp to 57,61,831 equity shares
    Offer for SaleUp to 15,15,150 equity shares
    Total Issue SizeUp to 72,76,981 equity shares
    Listing ExchangeNSE and BSE

    The IPO has two parts: a Fresh Issue and an Offer for Sale (OFS).

    The company receives the funds from the Fresh Issue. The OFS involves shares sold by promoter entity Vandana Rubber and Chemicals Private Limited, and selling shareholders Radhika Gupta, Anju Khanna, Pratyush Handa, and Priyanka Khanna. The OFS money goes to them, not to the company.

    The total issue size in rupees, price band, lot size, and issue dates will be shared later.

    About the Company

    Background

    Matangi Rubber was set up in June 2004 as Matangi Rubber Private Limited. It became a public limited company in November 2024. The company is based in New Delhi. In October 2024, it bought a 97.74% stake in MG Industries Limited.

    What the Company Does

    • Makes tyres, tyre flaps, tyre tubes, and rubber compounds

    • Its tyre range mainly serves two-wheeler and three-wheeler vehicles

    • Tyre flaps and tubes are mostly used in trucks and buses

    • Runs seven manufacturing units across Uttarakhand, Madhya Pradesh, and Tamil Nadu

    • Does contract manufacturing and job work for tyre companies

    • Trades rubber materials in a limited way for key customers

    How It Makes Money

    The company earns by selling tyre products and by doing contract manufacturing and job work for large tyre makers. JK Tyre & Industries Limited is a key outsourcing partner. The company had about 240 employees as of May 2025.

    Market Position

    Matangi Rubber is a multi-location auto parts maker. It covers rubber recycling, tyre, and tube production. The company has no direct listed peers. Its mix of in-house making and contract work for larger tyre firms gives it a unique spot in the auto components space.

    Industry Overview

    India's automotive rubber and tyre parts industry sees steady demand from both original equipment and replacement markets.

    Key growth drivers include:

    • Rising two-wheeler and three-wheeler production

    • Demand from trucks and buses

    • More tyre and tube work being outsourced by large producers

    • Growth in rubber recycling for sustainable inputs

    • Government focus on industrial growth in places like Bhind, Madhya Pradesh

    The company plans to build new facilities for rubber recycling and solid tyre production. These are designed to match this demand and grow capacity in a sector tied closely to vehicle production cycles.

    Company Financials

    The figures below are from the DRHP and show Total Income. FY2025 numbers are on a consolidated basis after the MG Industries acquisition. FY2024 and FY2023 figures are on a standalone basis.

    Financials (₹ crore)FY2025FY2024FY2023
    Total Income106.3091.2687.47
    EBITDA30.8910.397.81
    PAT20.034.812.74
    Total AssetsNot disclosedNot disclosedNot disclosed
    Net Worth92.53Not disclosedNot disclosed

    Strengths

    • Wide Manufacturing Base: Seven units across three states provide scale and geographic spread

    • Strategic Acquisition: Buying MG Industries expanded capacity and boosted financial results

    • Key Customer Tie-Up: A long-standing deal with JK Tyre & Industries supports revenue

    • Strong Profit Growth: PAT and EBITDA rose sharply from FY2024 to FY2025

    • Expansion Plans: New greenfield units for rubber recycling and solid tyres support future growth

    • Debt Reduction: Part of the fresh issue proceeds will be used to repay existing loans

    Risks

    • Customer Concentration: Heavy reliance on a few large tyre companies, including JK Tyre & Industries

    • Integration Risk: The MG Industries deal brings consolidation and execution challenges

    • New Facility Risk: The planned rubber recycling and solid tyre plants in Bhind have not yet started commercial operations

    • Raw Material Costs: Natural and synthetic rubber prices can swing and squeeze margins

    • Industry Cycles: Demand is tied to vehicle production cycles and replacement market trends

    • No Listed Peer: The lack of directly comparable listed peers may make valuation harder

    • Working Capital Needs: The business needs steady working capital to run manufacturing and job-work operations

    • Regulations: Operations must comply with industrial, environmental, and quality rules

    What Investors May Want to Look At

    • The mix of direct manufacturing and contract manufacturing

    • How the MG Industries acquisition has affected consolidated financials

    • Customer concentration, especially the dependence on JK Tyre & Industries

    • The status and execution risk of the planned greenfield units in Bhind

    • How fresh issue proceeds will be used — including debt repayment and capacity expansion

    • The pace of profit and EBITDA margin growth in recent years

    • The absence of listed peers for valuation comparison

    • Risks around raw material costs, industry cycles, and working capital

    • The price band, lot size, and issue dates — still to be announced

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    Content Partner - Dalal Street Investment Journal Wealth Advisory Private Limited



    This article is for educational purposes only and should not be considered investment advice. Market investments are subject to risks. DSIJ Wealth Advisory Private Limited is a SEBI-registered Research Analyst (Reg. No: INH000006396) and Investment Adviser (Reg. No: INA000001142). Please consult your financial adviser before investing. 

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    Publish Date: 28 Jul 2026

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