entagon Rubber, a leading engineering component player, made a stellar debut on the NSE’s SME platform on July 7, clocking a premium of 85% to open at Rs 130 per share over its issue price of Rs 70 per share. In a volatile trading session, the stock managed to end at Rs 123.50, up 76.43% over the issue price.
The company’s listing was subscribed 106 times, with the retail portion being subscribed 130 times. The company raised Rs 16.17 crore through its initial public offering (IPO).
Pentagon Rubber is a manufacturer of conveyor belts, rubber sheets, and other rubber products. The company has a manufacturing unit in Dera Bassi, Punjab. The company’s products are used in a variety of industries, including mining, construction, and manufacturing.
The company’s strong performance on the first day of listing is a positive sign for the SME market. The SME market has been seeing strong investor interest in recent months. The listing of Pentagon Rubber is expected to further boost investor interest in the SME market.
Reasons for the Strong Listing
There are a number of reasons why Pentagon Rubber’s listing was so strong. These reasons include:
- The company’s strong financial performance.
- The company’s strong growth prospects.
- The strong investor interest in the SME market.
Pentagon Rubber has been growing its revenue and profits steadily in recent years. In the financial year 2021-22, the company’s revenue grew by 23% to Rs 150.95 crore. The company’s profit after tax grew by 26% to Rs 22.54 crore in the same period.
Pentagon Rubber is well-positioned to grow in the future. The company is expanding its manufacturing capacity and is entering new markets. The company is also working on developing new products.
The SME market has been seeing strong investor interest in recent months. This is due to a number of factors, including the low valuations of SME stocks and the strong growth prospects of the SME sector.
Pentagon Rubber’s strong listing is a positive sign for the SME market. The listing is expected to further boost investor interest in the SME market. The company’s strong financial performance and growth prospects make it a good investment.