Open Your Free Demat Account
Enjoy low brokerage on delivery trades
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.
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.
| Particulars | Details |
|---|---|
| IPO Type | Book Built Issue |
| IPO Open Date | To be announced |
| IPO Close Date | To be announced |
| Face Value | ₹10 per equity share |
| Price Band | To be announced |
| Lot Size | To be announced |
| Fresh Issue | Up to 57,61,831 equity shares |
| Offer for Sale | Up to 15,15,150 equity shares |
| Total Issue Size | Up to 72,76,981 equity shares |
| Listing Exchange | NSE 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.
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.
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
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.
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.
India's automotive rubber and tyre parts industry sees steady demand from both original equipment and replacement markets.
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.
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) | FY2025 | FY2024 | FY2023 |
|---|---|---|---|
| Total Income | 106.30 | 91.26 | 87.47 |
| EBITDA | 30.89 | 10.39 | 7.81 |
| PAT | 20.03 | 4.81 | 2.74 |
| Total Assets | Not disclosed | Not disclosed | Not disclosed |
| Net Worth | 92.53 | Not disclosed | Not disclosed |
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
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
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
Disclaimer :
Investments in securities market are subject to market risk, read all related documents carefully before investing. This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
The information on this website is provided on "AS IS" basis. Bajaj Broking (BFSL) does not warrant the accuracy of the information given herein, either expressly or impliedly, for any particular purpose and expressly disclaims any warranties of merchantability or suitability for any particular purpose. While BFSL strives to ensure accuracy, it does not guarantee the completeness, reliability, or timeliness of the information. Users are advised to independently verify details and stay updated with any changes. The securities are quoted as an example and not as a recommendation. Past performance is not necessarily a guide to future performance.
The information provided on this website is for general informational purposes only and is subject to change without prior notice. BFSL shall not be responsible for any consequences arising from reliance on the information provided herein and shall not be held responsible for all or any actions that may subsequently result in any loss, damage and/or liability. Interest rates, fees, and charges etc., are revised from time to time, for the latest details please refer to our Pricing page.
Neither the information, nor any opinion contained in this website constitutes a solicitation or offer by BFSL or its affiliates to buy or sell any securities, futures, options or other financial instruments or provide any investment advice or service.
BFSL is acting as distributor for non-broking products/ services such as IPO, Mutual Fund, Insurance, PMS, and NPS. These are not Exchange Traded Products. For more details on risk factors, terms and conditions please read the sales brochure carefully before investing.
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.
For more disclaimer, check here : https://www.bajajbroking.in/disclaimer
Level up your stock market experience: Scan the QR to download the Bajaj Broking App for effortless investing and trading