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. According to reports from Moneycontrol, the company had filed its draft red herring prospectus (DRHP) with SEBI in May 2026, and 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.
The company operates five manufacturing plants and 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. As reported by Moneycontrol, the tyre flaps contract manufacturing segment contributed 75 percent of revenue 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 revenue.
Matangi Rubber recorded a consolidated profit of ₹16.42 crore and revenue of ₹86.64 crore during the nine-month period ended December 2025, according to Moneycontrol reports. For the financial year ended March 2025, its profit stood at ₹19.66 crore, while revenue was ₹101.3 crore.
The company plans to use ₹45 crore of the net proceeds from the fresh issue to repay debt, as reported by Moneycontrol. A further ₹19.05 crore will be used to set up a greenfield manufacturing facility for rubber recycling products, while ₹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 issue will be used for general corporate purposes.
Sarthi Capital Advisors has been appointed as the sole merchant banker for managing the Matangi Rubber IPO, according to Moneycontrol reports. The approval represents a significant milestone for the Delhi-based manufacturer as it prepares to enter the public markets within the next year.
