Kolkata: Home Zone Rubber Solutions Limited, one of the leading players in the circular economy catering to the rubber industry, announced the filing of its Draft Red Herring Prospectus (DRHP) with BSE SME. The company’s initial public offering comprises a fresh issuance of 99,03,846 Equity Shares and an Offer for Sale of up to 9,93,590 each with a face value of ₹2. The Offer for Sale is by the promoter Mr. Jitendra Ramesh Agarwal. Horizon Management Private Limited is the sole Book Running Lead Manager to the Issue, and Maashitla Securities Private Limited is the Registrar.
The Mumbai-headquartered company is in the circular economy catering to the rubber industry and facilitates in generating EPR for the same. The company manufactures crumb rubber granules in the size of 5, 8 & 10 mesh and fine rubber in the size of 20 mesh. Home Zone focuses on saving valuable natural resources by way of recycling and helps its customers fulfil their circularity aspirations through use of recycled rubber products. The company serves a diversified customer base ranging from Tyre and tube manufacturers to automobile parts manufacturers, and conveyor belt manufacturers.
Home Zone Rubber Solutions Limited operates a manufacturing facility at Lavachha village, near Valsad in Gujarat, which is spread over an area of approximately 5.50 acres, with the existing plant occupying nearly 3 acres of land, with a total installed capacity of 56940 metric tons per annum. The facility is located in close proximity to the Jawaharlal Nehru Port Trust, helping the company in importing raw materials easily. The facility employs an extensive and stringent process at each stage of the recycling process to ensure that finished product conforms to the exact requirement of its customers. The company is also a member of Material Recycling Association of India.
According to DRHP, the company intends to utilise ₹45.49 crore of the total IPO proceeds to purchase new plant and machinery, ₹25 crore for the repayment of term loan and plans to use the remaining capital for general corporate purposes.
Home Zone aims to increase manufacturing capability of existing products such as crumb rubber granules, clean steel wires and fibre and intends to get into finer mesh up to 120 mesh which will enable the company to access new industries like Reclaim rubber, CRMB* and New Tyre manufacturers which will add immense value to its existing product line.
The company is promoted by an experienced team comprising Mr. Jitendra Ramesh Agarwal, Chairman & Managing Director, Mr. Radheyshyam Madanlal Sharma, Non-Executive Director and Abhijeet Ashok Deshpande, Whole Time Director, who have combined experience of over 15 years in the rubber industry. They are deeply involved in various aspects of the company’s business, including manufacturing process, finance, procurement, marketing and new business development.
