Tyres flaps contract manufacturer Matangi Rubber gets SEBI nod to launch IPO

New business data points to the fact that Delhi-based Matangi Rubber, a manufacturer of tyre flaps, tubes, tyres and rubber compounds, has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its initial public offering (IPO) plans.

The firm had filed its draft red herring prospectus (DRHP) with SEBI in May 2026. The capital markets regulator issued its observations on the draft papers on September 28, allowing Matangi Rubber to launch its IPO within the next one year.

Promoted by the Gupta family, Matangi Rubber is planning an IPO of 72.76 lakh shares, comprising a fresh offering of 57.61 lakh shares and an offer-for-sale (OFS) of 15.15 lakh shares.

The firm operates five manufacturing plants. Its tyre portfolio primarily caters to the two-wheeler and three-wheeler segments, while its tyre flaps and tubes are mainly used in commercial vehicles. Its rubber compounds are used in the manufacture of other rubber products.

The tyre flaps contract manufacturing segment contributed 75 percent of topline during the nine-month period ended December 2025, while the job-work services division contributed 21 percent. The manufacturing and sale of rubber compounds, tubes and two- and three-wheeler tyres accounted for 1 percent of topline.

Matangi Rubber recorded a consolidated earnings of Rs 16.42 crore and topline of Rs 86.64 crore during the nine-month period ended December 2025. For the financial year ended March 2025, its earnings stood at Rs 19.66 crore, while topline was Rs 101.3 crore.

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How Matangi Rubber plans to use IPO proceeds

The firm plans to use Rs 45 crore of the net proceeds from the fresh offering to repay debt.

A further Rs 19.05 crore will be used to set up a greenfield manufacturing facility for rubber recycling products, while Rs 8.43 crore will be used to establish a greenfield facility for manufacturing solid tyres in Bhind, Madhya Pradesh.

The remaining proceeds from the fresh offering will be used for general corporate purposes.

Sarthi Capital Advisors has been appointed as the sole merchant banker for managing the Matangi Rubber IPO.