Horizon Reclaim (India) Ltd. IPO (BSE SME)
IPO dates: 12–16 Jun 2026 | Listing: 19 Jun 2026 
Price band: ₹98–₹103 | Issue size: ₹54.27 Cr (Fresh: ₹54.27 Cr | OFS: ₹0 Cr) 
Lot size: 1,200 shares | Exchange: BSE SME 
Quick take: Reclaimed rubber manufacturer (from used tyres, tubes, scrap) with working capital, debt repayment, and plant & machinery expansion plans. Key debate is margin stability in a commodity recycling business and execution of capex.

What the company does

Business: Manufactures reclaimed rubber—recycled rubber from old tyres, tubes, tread peelings, and industrial scrap.
Wins with: Natural Rubber Reclaim (footwear soles, floor mats, tyre base), Synthetic Rubber Reclaim (EPDM/Butyl for automotive seals, hoses, gaskets), and Crumb Rubber (road construction, sports surfaces, roofing).
Growth driver: working capital support, plant & machinery installation, and debt repayment.
Key metric: Capacity addition via new plant & machinery, PAT/EBITDA margin stability, and working capital efficiency.

How it makes money

Primary: Sales of reclaimed rubber products (Natural, Synthetic, Crumb) to SMEs and industrial customers.
Secondary: Value-added grades and application-specific rubber products.
Single line: Revenue comes from selling recycled rubber grades to B2B customers in footwear, automotive, construction, and industrial segments.

Financials that matter

What changed:

• PAT improved sharply from FY23 (₹0.67 Cr) to FY24 (₹0.71 Cr) and further to ₹7.07 Cr in FY25.

• EBITDA jumped to ₹10.46 Cr in FY25 versus ₹1.17 Cr in FY24.

• Borrowings rose to ₹16.12 Cr as of Sep 2025.

IPO structure & signal check

Signal: 100% fresh issue for working capital, debt repayment, and capex.

Valuation context

At upper band (₹103):
Implied market cap: ₹146.74 Cr
KPIs (Sep 30, 2025): ROE 30.14%, ROCE 21.12%, Debt/Equity 0.83, PAT Margin 20.40%, EBITDA Margin 31.67%
Peers: Not disclosed in the offer document.
Valuation Q: Whether capacity expansion and working capital support can sustain the sharp margin improvement seen in FY25.

Differentiators

• In-house manufacturing with technology-driven process.

• Diversified customer base and long-standing relationships.

• Experienced promoter directors with industry expertise.

• Stringent quality control for standardized product quality.

Key risks

• Profitability: Margin stability in a commodity recycling business; input scrap price volatility.

• Cash/balance: Borrowings at ₹16.12 Cr as of Sep 2025.

• Execution: New plant & machinery must deliver on capacity and margins.

• Working capital: Working capital needs could stress cash flow.

Post-listing watchlist

Track over 2–4 quarters:

• Growth: Revenue trajectory after capex and working capital deployment.

• Margins: PAT and EBITDA margin stability as capacity scales.

• Cash flow: Working capital usage and debt reduction.

• Mix: Share of Natural vs Synthetic vs Crumb rubber sales.

• Competition: Pricing pressure from larger recyclers and input cost volatility.

Closing:
This IPO is a bet on reclaimed rubber capacity expansion and working capital efficiency in a recycling business. Key uncertainties are margin sustainability, execution of the new plant, and working capital strain.