Horizon Reclaim's IPO opened for subscription on Friday, with the grey market indicating a strong debut for the SME issue. The Rs 54.3 crore IPO is commanding a grey market premium (GMP) of about 49% over the upper end of its price band, suggesting a potential listing price of around Rs 153 per share against the issue price of Rs 103.The issue will remain open for bidding till June 16, while the shares are scheduled to list on the BSE SME platform on June 19. The IPO is entirely a fresh issue of 52.69 lakh shares and aims to raise Rs 54.27 crore. The company has fixed a price band of Rs 98-103 per share.Investors can bid for a minimum of 2,400 shares and in multiples of 1,200 shares thereafter. At the upper price band, retail investors need to invest a minimum of Rs 2.47 lakh. The minimum investment requirement for small HNIs is Rs 3.71 lakh.The issue has reserved nearly 50% of the net offer for qualified institutional buyers (QIBs), 15% for non-institutional investors (NIIs) and 35% for retail investors.The proceeds from the fresh issue will primarily be used to reduce debt, fund working capital requirements and expand manufacturing capacity. Of the total proceeds, Rs 26.7 crore has been earmarked for repayment or prepayment of borrowings, Rs 9.43 crore for installation of additional plant and machinery and Rs 6 crore towards working capital needs.Incorporated in 2006, Horizon Reclaim manufactures reclaimed rubber products using recycled rubber waste such as used tyres, tubes, tread peelings and industrial scrap. The company's products are used across footwear, automotive, construction and industrial applications.Its portfolio includes natural rubber reclaim, synthetic rubber reclaim and crumb rubber. The company caters primarily to business-to-business customers, including small and medium enterprises and industrial clients, largely concentrated in western and north-western India.The company says its key strengths include an in-house manufacturing facility, technology-driven production processes, long-standing customer relationships and an experienced management team.Financially, the company has reported strong growth over the last two years. For FY26, Horizon Reclaim reported revenue of Rs 50.01 crore, up 37% from Rs 36.39 crore in the previous year. Profit after tax rose 49% to Rs 10.5 crore from Rs 7.07 crore a year earlier.EBITDA increased to Rs 16.32 crore from Rs 10.46 crore in FY25, reflecting improved operating performance.The IPO comes at a time when investor interest in recycling and circular economy-linked businesses is increasing, driven by sustainability trends and growing demand for recycled raw materials.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)