Pentagon Rubber Limited IPO | Review, GMP & Valuation

 Pentagon Rubber Limited:-Overview

Since 1969, PENTAGON has been producing rubber conveyor belts, transmission belts, and rubber sheets for export all over the world. The company is one of the major manufacturers of rubber conveyor belts in India. Using the most recent developments in raw materials, our products are constantly improved and evolving.

We are able to always provide our customers with the best product and solution because of our team's experience and expertise. We have won more than forty prestigious awards over the years, including the TOP Export Award, the UDYOG RATTAN Award from the Indian President, and a number of Special Export and Domestic Excellence Awards. This is a recognition of our high-quality processes and products. Our products are known for being of high quality, safe, and long-lasting, and we are an ISO 9001:2015 company.

Pentagon Rubber Private Limited provides Business-to-Business partners with our expertise and competence in a variety of areas. There is a thought behind all Pentagon Elastic items - a quality motivation that isn't compromised through the whole improvement process. This extends from our material handling and ore transportation systems to the integration of the entire system. As a result, our products meet the quality standards of a variety of industries and come with a warranty that can last up to a year after they start operating.

 

What does the company do?

Since 1969, PENTAGON has been producing rubber conveyor belts, transmission belts, and rubber sheets for export all over the world. The company is one of the major manufacturers of rubber conveyor belts in India. Using the most recent developments in raw materials, our products are constantly improved and evolving.

 

Company Products:

Rubber conveyor belts, transmission belts, rubber sheets, and elevator belts are all manufactured by Pentagon Rubber Limited, which was established in 2004.

Pentagon Rubber Limited's manufacturing facility is in Dera Bassi, Punjab, 25 kilometers from Chandigarh City. It has one of the longest conveyor belting presses in India, capable of producing 21 meters per stroke. The manufacturing unit can produce more than 300 square kilometers of conveyor rubber belts annually.

Conveyor belts manufactured in accordance with DIN, BS, IS, ISO, SABS, AS, GOST, and CAN standards can be produced in the company's cutting-edge international standards laboratory.

The All India Rubber Industries Association presented the business with the Export Merit Award, Special Domestic Sales Award, and Top Domestic Sales Award.

 

 

IPO Overview:-

Pentagon Rubber IPO Timetable (Tentative)

The Pentagon Rubber IPO is a small- and medium-sized IPO consisting of 2,310,000 equity shares with a face value of 10 and a potential value of 16.17 billion dollars. The share price of the issue is between 65 and 70 cents. Shares are the minimum quantity that can be ordered. The IPO will begin on June 26, 2023, and will end on June 30, 2023.

Pentagon Rubber IPO opens on June 26, 2023 and closes on June 30, 2023-06-20

Events	Tentative Dates
IPO Opening Date	Monday, 26 June 2023
IPO Closing Date	Friday, 30 June 2023
IPO Allotment Date	Wednesday, 5 July 2023
Refund Initiation	Thursday, 6 July 2023
Credit of Shares to Demat	Friday, 7 July 2023
IPO Listing Date	Monday, 10 July 2023
Cut-off time for UPI mandate confirmation	5pm on June 30 2023

 

Pentagon Rubber IPO Details:

IPO Date	June 26, 2023 to 30 June, 2023
Listing Date	July 10 2023
Face Value	Rs 10 Per Share
Price	Rs 65 to Rs 70 per share
Lot Size	2000 Shares
Total Issue Size	23,10,000 shares (aggregating up to Rs 16.17 crs)
Fresh Issue	23,10,000 shares
Issue Type	Book Building Shares
Listing At	NSE SME
Market Maker Portion	116000 shares

 

Pentagon Rubber IPO Lot Size:

Application	Lots	Shares	Amount
Retail (Min)	1	2000	140000
Retail (Max)	1	2000	140000
HNI (Min)	2	4000	280000

 

Pentagon Rubber IPO Reservation:-

QIB Shares Offered	Not more than 50.00% of the Net Offer
NII (HNI)  Shares Offered	Not Less than 15.00% of the offer
Retails Shares Offered	Not Less than 35.00% of the offer

 

Pentagon Rubber IPO Promoter Holding:-

The promoters of the company are Mr. Anil Jain, Mr. Lalit Jain, Mr. Ashish Jain, and Mr, Saurabh Jain.

Pre-Issue Share Holding	100%
Post-Issue Share Holding	70.04%

 

Company Financials

Amount in Lakhs

Period Ended	31 March 2020	31 March 2021	31 March 2022	31 December 2022
Total Assets	2132.82	2588.99	2802.18	2956.70
Total Revenue	1939.25	2319.69	3511.59	2997.88
Profit After Tax	93.81	110.30	308.66	215.86
Net Worth	135.48	245.78	554.43	770.30
Reserves and Surplus	-264.52	-154.22	154.43	230.30
Total Borrowing	1244.6	1649.42	1758.61	1669.79

 

Object of the Issue:-

The company intends to use the issue's net proceeds to finance the following endeavors:

• To meet the need for working capital, and
• General expenses of the company

 

Company Promoters and Management:-

Mr. Ashish Jain, 49, is the Promoter of the Company as well as Chairman and Managing Director. He has a Bachelor of Chemical Engineering from Bangalore University and a Master of Business Administration (MBA) from Fairleigh Dickinson University in New Jersey, USA. On April 26, 2004, he was named to the Board. On January 11, 2023, he was also named Chairman and Managing Director of the Company, serving for a period of five years and not subject to rotation. He has worked in the rubber industry for 23 years. He has been instrumental in the Company's major policy decisions. He is making a significant contribution to the formulation of business strategies and their successful implementation. He is in charge of the Company's expansion and overall management of its operations. He leads the organization's global operations, which include strategic planning, team mentoring, and business administration, thanks to his nearly two decades of experience in the rubber industry.

Mr. Anil Jain, 68, serves as the company's full-time director. He has a Bachelor of Commerce degree. He was first appointed to the Board on April 26, 2004, and on January 11, 2023, he was made the Whole-Time Director of the Company for a period of five years, with the option to retire on a rotating basis. He has 37 years of experience in sales and marketing.

The company has a full-time director in Mr. Saurabh Jain, 40. He holds a BBA (Bachelor of Business Administration) degree. Since, he has held the position of Executive Director on the Board. On January 11, 2023, he was appointed Whole-Time Director of the Company for a further five years, with the option to rotate out. He has 19 years of production and procurement experience.

 

Peer Competition:-

As on Date of DRHP	FV (in Rs.)	Total Income (Rs. in Crore)	PE Ratio of
The IPO Company	10	-	12.24
Somi Conveyor Belting	10	-	25.51
International Conveyor	10	-	23.39

 

Pentagon Rubber IPO Valuation- FY 2022

The Earnings Per Share (EPS), Price/Earnings P/E Ratio, Return on Net Worth (RoNW), and Net Asset Value (NAV) details of the Pentagon Rubber IPO valuations should be examined.

Earning Per Shares (EPS)	Rs 5.72 per equity shares
P/E Ratio	NA
Return on Net Worth	55.67%
Net Asset Value	Rs 13.86 per equity share

 

Pentagon Rubber IPO Form:-

How does Pentagon Rubber IPO work? Pentagon Rubber IPO can be applied for using ASBA, which is available in your bank account. Simply go to the online bank login and select the Pentagon Rubber IPO in the Invest section to apply through your bank account. The other option is to apply for the IPO of Pentagon Rubber by downloading the IPO forms from the NSE website. Visit the Pentagon Rubber forms by clicking NSE IPO Forms, downloading them, filling them out, and submitting them to your bank or broker.

 

IPO Strengths:-

Company has a strong Annual EPS Growth

• Taking advantage of the Promoter's expertise.
• The current client relationship
• Product quality assurance and control for the business.
• Revenues and customer satisfaction from long-term relationships
• An adaptable business strategy

 

IPO Weakness:-

• Company has High Debt

 

 

Pentagon Rubber IPO GMP:-

Date	Consolidated IPO GMP	Kostak	Subject to sauda
Coming Soon	-	-	-

 

Pentagon Rubber IPO Registrar:-

 Link Intime India Pvt Ltd

Pentagon Rubber IPO Lead Manager(s):-

 Beeline Capital Advisors Pvt Ltd

 

Conclusion:-

In India, Pentagon Rubber, a leading manufacturer of engineering components, has launched an initial public offering (IPO) for Rs 16.17 crore, or $2.50 million. The company is offering 23,100,000 equity shares at a price range of Rs 65-70 per share and a face value of Rs 10. The IPO begins on June 26 and ends on June 30. The company expects to triple its revenue in the next two years, and the proceeds from its initial public offering (IPO) will be used to finance the expansion of its business, meet general cost requirements, and cover issue costs.

Before making any investment commitments, it is recommended to undertake extensive research and seek guidance from financial experts like Mukul Agrawal. 

 

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To Read the Prospectus of the Company Click Here to Download the DRHP/ RHP

 

 

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