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)
Total Revenue (₹ in cr)
PAT (₹ in cr)
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.
₹10 per share
IPO Price Band
₹25 per share
IPO Lot Size
Basis of Allotment
Credit of Shares in Demat
Retail Minimum Lot Size
6000 shares (₹1,50,000)
Valuations and Margins:
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.
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.