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  • Writer's pictureJatin Agarwal

Lead Reclaim IPO


Company and IPO Overview


The Company is in the business of manufacturing of reclaimed rubber, crumb rubber powder and rubber granules. Lead Reclaim and Rubber Products has its focus in saving valuable natural resources by way of recycling; and helping its customers fulfill their circularity aspirations through use of its reclaimed rubber products.


Lead Reclaim and Rubber Products has an extensive and stringent quality control mechanism at each stage of the recycling process to ensure that the finished product conforms to the exact requirement of its customers. The company’s manufacturing facility is accredited with ISO 9001:2015 certifications for quality management system.


Lead Reclaim and Rubber Products has a wide Portfolio that offers a diversified range of products including a variety of grades, thicknesses, widths and standards of various grades of whole tyre reclaim rubber, butyl reclaims rubber and natural reclaimed rubber.

Currently, it sells its products to OEM’s, Tier I companies in the automotive manufacturing sector, distributors and dealers. It also sells its products to foreign buyers located in SriLanka, China, Argentina, Turkey, etc through merchant exporters.


Lead Reclaim and Rubber Products Ltd is an NSE SME IPO and is about to raise ₹4.88 crores via IPO. The Lead Rubber IPO price band is fixed at ₹25 with a market lot of 6000 shares. The company has reserved a quota of 50.00% for NII and 50.00 % for Retail Investors in this IPO.


Financials (rounded off)

Date

Total Revenue (₹ in cr)

​​​PAT (₹ in cr)

​31/03/2020

4.84

0.36

31/03/2021

7.06

0.23

31/03/2022

10.37

0.48

Objectives of the Issue

· Primarily to undertake Cap-ex for extending and modernizing its Manufacturing facility.

· Funding its working capital requirements.

· Funneling excess funds in other general corporate issues.



IPO Details

IPO Date

09/02/2023-13/02/2023

Face Value

₹10 per share

IPO Price Band

₹25 per share

IPO Lot Size

6000 Shares

Listing at

NSE SME

Basis of Allotment

16/02/2023

Credit of Shares in Demat

20/02/2023

Listing Date

21/02/2023

Pre-Issue Shareholding

86.48%

Post-Issue Shareholding

63.51%

Retail Minimum Lot Size

6000 shares (₹1,50,000)


Valuations and Margins:

FY20

FY21

FY22

EPS (Rs.)

11.64

7.28

3.0

P/E

-

-

8.33

ROCE (%)

18.3

19.28

15.7

Debt/Equity

21.6

9.82

0.93

Important things to note about the company:

· The Revenue has increased from Rs 4 crores in FY20 to Rs 10 crores in FY22.

· Profit margins have not increased in line with revenue.

· Market Capitalization is 18 crores which means investment is quite risky.



Crisp Insights:

  • Adani Stocks have made the broader markets weak, hence, any negative news there can severely impact these small IPOs

  • Grey Market Premium is negligible.


Disclaimer: All information is provided for educational and informational purpose only. Data is fetched from publicly available sources such as the DRHP filed by the company. The website or the author takes no guarantee for the accuracy of the data however, we have tried our best to present accurate data to out readers. Please consult a financial advisor or do your own analysis before investing/trading in the stock market.

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