Delhi-based auto-component and rubber products manufacturer Matangi Rubber has filed its DRHP with the Securities and Exchange Board of India (SEBI). Matangi Rubber IPO is a mix of fresh issue (57,31,831 shares) and OFS (15,15,150 shares). Sarthi Capital Advisors is the sole Book Running Lead Manager, while Bigshare Services has been appointed as the registrar to the issue.

Notably, the company has previously filed its DRHP with the Bombay Stock Exchange to list on its SME platform. At that time, the issue was a fresh issue of up to 37,09,600 equity shares without any OFS component. For your reference, here is the old DRHP.

Matangi Rubber IPO Details & Structure

Matangi Rubber’s upcoming public issue comprises a combination of fresh capital allocation to fuel its next phase of capital expenditure and an offer for sale (OFS) from promoters and early investors:

• Total Issue Size: Up to 72,76,981 Equity Shares (Face Value of INR 10 each)
• Fresh Issue: Up to 57,61,831 Equity Shares
• Offer for Sale (OFS): Up to 15,15,150 Equity Shares

Matangi Rubber IPO Selling Shareholders

Note: The core promoter group maintains a tight holding on the pre-issue equity base, with Radhika Gupta holding 43.15%, Mohit Gupta holding 14.02%, Manju Gupta holding 12.01%, and Vandana Rubber and Chemicals holding 11.93%. Capri Global also holds 7,80,000 shares (3.41% stake) in the company.

Matangi Rubber IPO: Use of Funds

The company plans to deploy the net proceeds from the fresh issue across three strategic pillars focused on deleveraging and sustainability-driven margin expansion:

• Debt Repayment: INR 45.00 crore earmarked for the full or partial repayment/pre-payment of certain outstanding borrowings to strengthen the balance sheet.
• Rubber Recycling Greenfield Expansion: INR 19.06 crore allocated for setting up a new devulcanisation and rubber recycling facility at Bhind (Madhya Pradesh) with an estimated capacity of 3,910 MTPA. This facility will process internal scrap into reclaimed rubber.
• Solid Tyres Greenfield Plant: INR 8.44 crore designated for establishing a dedicated production line for solid, puncture-resistant industrial tyres at Bhind, with an estimated capacity of 603 MTPA, utilizing waste rubber from its adjacent operations.

Matangi Rubber IPO: Business Overview

Incorporated in 2004, Matangi Rubber has steadily scaled from a standalone manufacturing unit into a multi-location automotive ancillary partner specialising in tyres, inner tubes, tyre-flaps, and customised rubber compounding. A defining corporate milestone occurred in October 2024, when Matangi acquired a 97.74% controlling stake in MG Industries, transforming it into its core material subsidiary.

The company operates a diversified footprint of 5 operational plants and 2 proposed greenfield structures across key industrial corridors in Selaqui (Uttarakhand), Gummidipoondi (Tamil Nadu), and Bhind (Madhya Pradesh). The business scales via a multi-pronged revenue model:

• Contract Manufacturing: Producing customised white-labeled tyre flaps complete with client branding. This remains the company’s anchor vertical, contributing a massive 75.31% to the total top-line in 9M FY26.
• Job Work Services: Processing raw materials provided directly by principal companies in exchange for fixed conversion charges. This layer has scaled aggressively, hitting 20.92% of operations revenue in 9M FY26.
• Own-Brand Manufacturing: The company has launched proprietary automotive inner tubes under its flagship brand “EMGEE”, targeting the replacement market via independent distributor channels.

Matangi Rubber maintains a deep, highly integrated operational relationship with Indian tyre major JK Tyre & Industries, serving as a critical outsourcing vendor for their commercial vehicle tube, tyre, and flap architectures across multiple manufacturing sites.

Matangi Rubber Financial Highlights

Bottom Line: Matangi Rubber’s financial trajectory reflects an aggressive operational turnaround. The transition from standalone tracking in FY24 to consolidated structures in FY25 highlights the immense impact of the MG Industries acquisition. The company’s PAT surged nearly 4x between FY24 and FY25, with EBITDA margins expanding significantly due to high-yielding job-work agreements. As the newly launched Bhind tyre facility scales up and the proposed greenfield recycling plant works backwards to lower raw material inputs, the company is well-positioned to capitalise on cost-optimisation and margin growth.

Rajat Bhati has a strong technical background and 5 years of experience in the stock market. He focuses on equity research, technical analysis, IPO valuations, and risk management, helping investors make clearer, data-backed decisions. Today, he works full-time to educate people about the opportunities in IPO market.