With the global shift toward sustainability, circular economies, and recycling, the green industry is gaining massive momentum on the stock exchanges. Entering this high-demand green sector is Horizon Reclaim (India) Limited with its SME Initial Public Offering (IPO).
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Horizon Reclaim (India) Limited: Company Profile
Horizon Reclaim (India) Limited is an established manufacturer operating in the sustainable manufacturing landscape. The company recycles industrial waste, old tires, rubber tubes, and tread peelings to manufacture high-grade reclaimed rubber.
Its diversified environmental product portfolio includes:
Natural Rubber Reclaim: Primarily used in tire manufacturing, footwear, and automotive components.
Reclaimed Synthetic Rubber: Tailored for industrial sheets, molded goods, and specific durability applications.
Rubber Crumbs: Utilized in modified bitumen for roads, sports turfs, and playgrounds.
Horizon Reclaim (India) IPO Details & Timeline
The public issue is a 100% Fresh Issue of approximately 52.69 lakh shares aiming to raise ₹54.27 crore, with no Offer for Sale (OFS) component from existing promoters.
Key IPO Specifications
Tentative Timetable
IPO Opening Date
June 12, 2026
The bidding window officially opens for retail and HNI investors.
IPO Closing Date
June 16, 2026
The final day to subscribe to the issue. Bidding closes in the afternoon.
Allotment Date
June 17, 2026
The registrar finalizes the allotment status based on total subscription demand.
Refunds & Demat Credit
June 18, 2026
Initiation of refunds for unallotted applications; shares are credited to demat accounts.
Expected Listing Date
June 19, 2026
Trading of Horizon Reclaim shares commences on the BSE SME board.
Application Lot Size & Minimum Capital Needed
Due to the regulatory structure of the SME exchange platform, shares are bundled into defined investment lots:
Retail Minimum Application: 2 Lots (2,400 Shares) — ₹2,47,200
Retail Maximum Application: 2 Lots (2,400 Shares) — ₹2,47,200
HNI Minimum Application: 3 Lots (3,600 Shares) — ₹3,70,800
Financial Health Analysis
Horizon Reclaim (India) Limited showcases rapid compound growth over its operational history, backed by a strong surge in net profit margins.
Key Financial Metrics (in ₹ Crores)
Financial KPIs & Ratios (As of March 31, 2026)
EBITDA Margin: 32.64%
PAT Margin: 21.25%
Return on Equity (RoE): 53.63%
Return on Capital Employed (ROCE): 25.45%
Debt-to-Equity Ratio: 1.44x
Price-to-Book Value (P/B): 5.91x
Cash Flow Trends (in ₹ Lakhs)
Unlike many rapidly expanding companies, Horizon Reclaim maintains positive operational cash liquidity.
Operating Cash Flow (FY26): Positive ₹1,009.34 Lakhs
Investing Cash Flow (FY26): Negative ₹3,464.81 Lakhs (reflecting heavy capital expansion and asset creation)
Objectives of the Issue
The company plans to deploy the net funds raised via the Fresh Issue for:
Debt Reduction (₹26.70 Cr): Pre-payment or complete repayment of specific outstanding borrowings to lower finance costs.
Capital Expenditure (₹9.43 Cr): Funding the installation of newer, automated plants and machinery.
Working Capital (₹6.00 Cr): Supporting upcoming raw material procurement.
General Corporate Purposes: Meeting overall operational and administrative expenditures.
Valuation & Peer Comparison
Let's look at how the company shapes up against its primary listed peer on the exchange:
Based on the upper price cap of ₹103 and an FY25 baseline EPS of ₹4.96, the issue is valued at a P/E ratio of 20.76x. This places its pricing slightly ahead but largely in line with its direct competitor, Lead Reclaim.
Investment Strengths vs. Risk Factors
Core Strengths
Technology Driven: Uses an in-house production layout emphasizing high-efficiency machinery.
Sticky Customer Base: Deep-rooted, long-term working supply agreements with a well-diversified set of industrial clients.
High Margin Execution: Boasts strong operational margins, with an EBITDA margin of over 32%.
Potential Weaknesses
Raw Material Uniformity: Variations in the structural compound of source waste tires can alter the batch consistency of the final product.
Debt Levels: Total borrowings have increased substantially up to ₹35.76 crore in FY26 (though the IPO proceeds are designated to lower this load directly).
Application Ceiling: Reclaimed rubber experiences structural limitation and limited acceptance in high-stress, high-performance manufacturing applications.
Horizon Reclaim (India) IPO GMP Today
The Horizon Reclaim (India) IPO GMP today stands at ~₹55. Set against the upper band of ₹103, the grey market trends show robust primary market enthusiasm, pointing to an estimated listing premium of around ~53%.
Conclusion: Should You Apply?
Horizon Reclaim (India) Limited offers a financially sound gateway into the recycling and green manufacturing segment. Its strong margins, solid operational cash flows, and structured goal to lower debt using the IPO proceeds are highly positive indicators.
However, its valuation multiple at 20.76x leaves less room on the table compared to highly discounted issues. Investors tracking ipo gmp indicators for swift listing gains will find the strong grey market sentiment encouraging. For long-term portfolios, monitor how efficiently the company expands its facility post-listing.
Track Your Application: Check the allotment status on the official registrar portal, Kfin Technologies Limited, or visit the BSE platform directly. For real-time updates regarding listing gains, bookmark the Finowings Live IPO GMP tracker.
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