Horizon Reclaim (India) IPO Grey Market Premium hits 48.5% on first day

The company is involved in manufacturing reclaimed rubber, which is recycled rubber derived from used rubber materials such as old tyres, rubber tubes, tread peelings, and industrial scrap.AI Quick ReadHorizon Reclaim (India) IPO Day 1: The initial public offering (IPO) of Horizon Reclaim (India), which opened for bidding today, June 12, sailed through in less than an hour of opening amid a strong trend for the offer in the grey market. The SME IPO will close on June 16.

The company is involved in manufacturing reclaimed rubber, which is recycled rubber derived from used rubber materials such as old tyres, rubber tubes, tread peelings, and industrial scrap.

Horizon Reclaim (India) IPO is entirely a fresh issue of 0.53 crore shares worth ₹54.27 crore. All proceeds raised from the share sale will be received by the company. The company plans to use ₹26.70 crore from the funds raised for repayment of certain borrowings availed by the company, ₹9.43 crore for capex for installation of additional plant and machinery and ₹6 crore for working capital needs and the rest for general corporate purposes.

Horizon Reclaim (India) IPO price band is set at ₹98 to ₹103 apiece. Investors could apply for the offer in lots of 1,200 shares. For a retail investor, the minimum investment size is at least two lots, resulting in a payout of ₹247,200 at the upper end of the price band.

The allotment for the SME IPO will be finalised on June 17, with the listing expected to take place on BSE SME on June 19.

Horizon Reclaim (India) IPO was subscribed 1.47 times as of 11.23 am on the first day of the book-building process today, amid strong demand from retail and non-institutional investors (NIIs).

The retail portion was booked 2.23 times, the NII quota 1.67 times and the qualified institutional buyer (QIB) segment nil. The offer received bids for 51.57 lakh shares as against 35.04 lakh shares on offer.

Horizon Reclaim (India) IPO grey market premium (GMP) has been on an uptrend. According to investorgain.com, Horizon Reclaim (India) IPO GMP today is ₹50. This means shares of the company are available at ₹153 in the grey market.

At the current GMP, Horizon Reclaim (India) shares could list at a 48.5% premium over the offer price.

Incorporated in 2006, the company is engaged in the manufacturing of reclaimed rubber. Reclaimed rubber serves as a cost-effective and environmentally friendly alternative to natural and synthetic rubber and is widely used in the production of various rubber-based products.

The company offers reclaimed rubber across three primary categories:

Natural Rubber Reclaim – Produced from rubber tyre casings and tubes, this category is commonly used in footwear soles, floor mats, tyre base layers, and moulded rubber products.

Synthetic Rubber Reclaim – This includes EPDM and Butyl Reclaim Rubber, which are suitable for applications requiring resistance to oil, heat, and weather conditions, such as automotive seals, hoses, gaskets, and construction profiles.

Crumb Rubber – Manufactured from recycled tyres, crumb rubber is used in road construction, sports surfaces, and construction materials such as roofing sheets.

The company's products are supplied in various grades to meet specific customer requirements and application needs.