Home Zone Rubber Solutions Ltd

About Home Zone Rubber Solutions Limited IPO

Home Zone Rubber Solutions Limited IPO is an IPO of up to 1,08,97,436 equity shares. It consists of an offer for sale of up to 9,93,590 equity shares and a fresh issue of up to 99,03,846 equity shares. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA and the initiation of refunds will take place on TBA.

Objective of Home Zone Rubber Solutions Limited IPO

• Purchase of new plant and machinery i.e. Eldan line.
• Repayment of term loan.
• General corporate purposes.

Industry Outlook

India is the sixth-largest producer of natural rubber, the second-largest consumer of natural rubber, and the third-largest consumer of natural and synthetic rubber combined in the world. India is also the world’s largest manufacturer of reclaimed rubber. The turnover of the Rubber Industry is estimated to be approx. ₹85000 crore, which comprises ₹55000 crores from the tyre Industry and ₹30,000 crores (non-tyre including latex industry) during 2021-22. Around 500 latex industries are involved in manufacturing latex rubber goods using the latex obtained from natural rubber trees.

Company Information

Home Zone Rubber Solutions Limited is in the circular economy, catering to the rubber industry and facilitating the generation of EPR. The company is in the business of manufacturing crumb rubber granules in the sizes of 5, 8 & 10 mesh, fine rubber in the size of 20 mesh. During the manufacturing process of shredded tyres, two by-products are generated, such as clean steel wires and fibre. They operate out of a 21,615 sq. mts land area where the total installed capacity is 56940 metric tons per annum.

Risks of Home Zone Rubber Solutions Limited IPO

• They highly depend on their key raw material and a few key suppliers who help them procure the same. The company has not entered into long-term agreements with its suppliers for the supply of raw materials. If they are unable to procure adequate amounts of raw materials at competitive prices, their business, results of operations, and financial condition may be adversely affected.

• The company and promoter of their company are party to certain litigation and claims. These legal proceedings are pending at different levels of adjudication before the court and regulatory authority. Any adverse decision may make them liable to liabilities/penalties and may adversely affect their reputation, business, and financial status.

• They have significant power requirements for continuous running of their manufacturing unit. Any disruption to their operations on account of interruption in power supply or any irregular or significant hike in power tariffs may have an effect on their business, results of operations, and financial condition.

Anchor Investor Information

The Anchor Investor Bidding Date shall be one Working Day prior to the Bid/Offer Opening Date.

IPO Registrar and Book Running Lead Managers

Book running lead managers:

Horizon Management Private Limited

Registrar for the IPO is Maashitla Securities Private Limited

Business Model

The company earns its revenue by offering the following:

• Manufacturing and selling products (crumb rubber granules products) to tier 2 companies in the automotive manufacturing sector, distributors, and dealers.

Company Growth Trajectory

Revenue from operations increased by 46.19%, from ₹31.00 crores in FY 2022-23 to ₹45.32 crores in FY 2023-24. The increase was mainly due to a rise in the sale of products during the year. Other income increased significantly from ₹0.0034 crores in FY 2022-23 to ₹0.0364 crores in FY 2023-24.

Company Market Position

They serve a diversified customer base ranging from tyre and tube manufacturers to automobile parts manufacturers, and conveyor belt manufacturers. They generally do not enter into any agreements with their customers; however, they have developed long-standing relationships with these customers, some of whom have been with them for over two years. They are one of the few companies in their waste/scrap tyre re-cycle industry that can process shredded tyre into crumb rubber granules.

How To Check Allotment Status of Home Zone Rubber Solutions Limited IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar Maashitla Securities Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Home Zone Rubber Solutions Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Maashitla Securities Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Home Zone Rubber Solutions Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status