Pentagon Rubber, a leading player in the rubber conveyor belt manufacturer has made a remarkable entry on the NSE’s SME platform, as its shares opened with an impressive premium of 85% at Rs 130 per share, compared to the issue price of Rs 70 per share.
The stock witnessed volatility throughout the trading session but managed to close at Rs 123.50, marking a substantial gain of 76.43% over the issue price.
Pentagon Rubber’s public issue, valued at Rs 16.17 crore, received an overwhelming response, with an oversubscription of 106 times. The total bids received for the 23.10 lakh shares on offer amounted to over 16.33 crore shares.
Among the investor categories, the retail portion experienced a 130-time subscription, while the non-institutional buyer category was oversubscribed 153 times. The subscription period commenced on June 26 and concluded on June 30.
Notably, the issue witnessed anchor investments from Minerva Ventures Fund and NAV Capital Emerging Star Fund. Beeline Capital Advisors Private Ltd acted as the lead manager for the issue, and Link Intime India Private Ltd served as the Registrar.
With its extensive portfolio encompassing rubber conveyor belts, transmission belts, rubber sheets, and elevator belts, Pentagon Rubber is poised for robust growth in the coming 24 months. The company aims to achieve a three-fold increase in revenues by March 2025, driven by ongoing capacity expansion initiatives and strong demand from the domestic infrastructure sector, including road construction, cement, steel, and chemicals.
Chairman & Managing Director of Pentagon Rubber Limited, Ashish Jain said, “We are delighted by the resounding response to our listing and anticipate continued positive momentum for our stock. Through sustained investments in research, quality, product range, and efficiency, we have established a strong presence in a highly competitive market.”
“The funds raised through the issue will be allocated towards meeting working capital requirements, general corporate purposes, and issue expenses. Our ongoing expansion is funded internally and through bank loans as part of our ordinary business operations,” Jain added.
Founded in 2004, Pentagon Rubber operates its manufacturing unit in Dera Bassi, Punjab. The company boasts one of India’s most advanced conveyor belting presses, enabling it to produce conveyor rubber belting up to 3150 KN/m, making it a leading manufacturer in the country.
With an annual production capacity exceeding 300 square kilometers of conveyor rubber belts, Pentagon Rubber also possesses a state-of-the-art laboratory that adheres to international standards. The laboratory can produce conveyor belts compliant with various global standards, including DIN, BS, IS, ISO, SABS, AS, GOST, and CAN. As a result of its certifications and product development prowess, the company is an approved vendor for numerous Maharatna, Navratna, Miniratna, and multinational corporations within India and abroad.
The conveyor belting industry plays a crucial role in facilitating the efficient movement of goods and transmission across multiple sectors, including core infrastructure areas such as mining, power, and roads.