8 July 2023
Pentagon Rubber, one of the leading engineering component players, made a stellar debut on the NSE’s SME platform, clocking a premium of 85% to open at Rs 130 per share over its issue price of Rs 70 per share.
In a volatile trading session the stock managed to end at Rs 123.50, up 76.43% over the issue price.
The Rs 16.17 crore public issue was subscribed 106 times, receiving bids of over 16.33 crore shares against 23.10 lakh shares on offer. Of the investor categories, the retail portion was subscribed 130 times, while non-institutional buyer category was subscribed 153 times. The issue was open for subscription on June 26 and ended on June 30. Minerva Ventures Fund and NAV Capital Emerging Star Fund were the anchor investors of the issue. The issue was lead managed by Beeline Capital Advisors Private Ltd, while Link Intime India Private Ltd was the Registrar to the issue.
The company manufactures a wide range of rubber conveyor belts, transmission belts, rubber sheets and elevator belts. Laying out its growth plans for the next 24 months, the company plans to achieve 3X growth in revenues by March 2025 on the back of its ongoing capacity expansion and strong demand from the domestic infrastructure sector, including Road construction, Cement, Steel and Chemicals.
Commenting on the company’s listing, Mr. Ashish Jain, Chairman & Managing Director, Pentagon Rubber Limited, said, “We are extremely proud of the company’s robust listing on the NSE’s SME bourse and are hopeful that the optimism in our stock would continue going ahead. Our sustained investments in research, quality, product range and efficiency have enabled us to establish our credentials in an overtly competitive space. The company’s objective of raising funds has been to meet Working Capital Requirement, General Corporate Purpose and the Issue Expenses. The ongoing expansion has been entirely funded through its internal accruals and bank loans in the ordinary course of its business.
The company was incorporated in 2004, and its manufacturing unit is located at Dera Bassi, Punjab(25 KMS from Chandigarh city). Pentagon Rubber has one of India’s longest conveyors belting presses, with a production capacity of 21 mtr in a single stroke. This technology allows the company to produce convey or rubber belting upto 3150KN/m, making it one of the top manufacturers in India.
The production capacity is over 300 sq km of conveyor rubber belt per year. Besides, the company has a modern laboratory of international standards that can produce conveyor belts as per DIN, BS, IS,ISO,SABS,AS,GOST, and CAN standards. Owing to its certifications and product development prowess, the company is registered as an approved vendor with various Maharatna, Navratna, Miniratna, various MNCs and major Corporate Groups within the country and abroad.
The conveyor belting industry caters to the need of multiple industries around the efficient movement of goods and transmission, including core infrastructure sectors such as mining, power and roads.