HP Adhesives IPO: Its Performance on Day 3?

27 January 2023
4 mins read
HP Adhesives IPO: Its Performance on Day 3?

The initial public offering of HP Adhesives was subscribed 20.96 times on its third and final day. As of 17 December 2021, investors put forth bids for 5,29,87,700 shares against 25,28,500 equity shares offered by HP Adhesives.

HP Adhesives Ltd. is a manufacturer of industrial sealants and adhesives. It offers a wide range of industrial adhesives and sealants like PVC, synthetic rubber adhesive, uPVC and cPVC solvent cement, silicone sealant, PVA adhesives, acrylic sealant, PVC pipe lubricants, gasket shellac, and other sealants.

This adhesive and sealant company aimed to raise Rs. 125.96 crores from this public offering, consisting of a fresh issue of 41,40,000 equity shares worth Rs. 113.44 crores alongside an OFS of 4,57,200 equity shares amounting to Rs. 12.53 crores.

Let’s find out more about this IPO’s performance on Day 3 in the next section!

How Did HP Adhesives IPO Perform on Day 3?

The performance of this initial public offer of HP Adhesives across different investor categories is depicted below.

  • Out of 13,79,200 shares reserved for Qualified Institutional Investors (QIB), the company received bids for 25,13,150 shares.
  • 6,89,580 shares were allotted to Non-Institutional Investors (NII), wherein they put forth their bids for 1,31,26,950 equity shares.
  • HP Adhesives reserved 4,59,720 equity shares for Retail Individual Investors (RII), where they received bids for3,73,47,600

This table shows the final day subscription status of the initial public offering of HP Adhesives.

Investor Segment IPO Subscription
QIBs 1.82 Times
NIIs 19.04 Times
RIIs 81.24 Times
Total 20.96 Times

HP Adhesives reserved a maximum of 10% shares for retail investors, not more than 15% shares for NIIs, and a minimum of 75% shares for Qualified Institutional Buyers in this public issue.

Know About the Anchor Investors

On 14 December 2021, HP Adhesives mopped up Rs. 56.68 crores from 3 anchor investors ahead of its public offering. The company also confirmed the allocation of 20,68,700 shares to these investors at the upper price band of Rs. 274 per share in its BSE filing.

The table below shows the share allocations of these anchor investors.

Name of the Anchor Investor Allocation of Equity Shares
Coeus Global Opportunities Fund 5,47,500
AG Dynamic Funds 5,55,200
3 Sigma Global Fund 9,66,000

HP Adhesives IPO: Highlights from Day 1 and Day 2

The following table shows the subscription status of this public issue across different categories of investors on Day 1 and Day 2.

Investor Category QIB NII RII Total
Day 1 0.38 Times 18.57 Times 3.48 Times
Day 2 0.34 Times 1.90 Times 40.29 Times 8.03 Times

HP Adhesives intends to use the proceeds from this public issue for the following purposes.

  • Expanding the production capacity of its existing manufacturing facility
  • Funding its working capital requirements
  • Constructing an additional manufacturing unit at the adjoining plot.

Bottom Line

As of 30 September 2021, HP Adhesives has four distribution depots at Kolkata, Delhi, Indore, and Bengaluru. The company also has over 750 distributors catering to 50,000+ dealers in this nation. Its multi-product manufacturing facility is situated at Village Narangi, Raigad in Maharashtra. HP Adhesives also sold a wide range of products to 21 countries in FY21.

In addition, this company has reported substantial financial growth in the past financial year. The PAT of HP Adhesives from FY21 stands at around Rs. 10.05 crores with the potential to grow more.

 

Frequently Asked Questions

  1. What is the minimum investment for HP Adhesives IPO?

The lot size for HP Adhesives IPO was 50 shares. So, investors could apply for a minimum of 1 lot consisting of 50 shares amounting to Rs. 13,700.

  1. When can I buy HP Adhesives stocks if I have missed the IPO?

HP Adhesives will list its IPO shares on both BSE and NSE on 27 December 2021. If you have missed this IPO, you can buy the stocks of this company from either of the stock exchanges on or after 27 December 2021.

  1. What is the maximum investment for HP Adhesives IPO?

Investors could apply for a maximum of 14 lots comprising 700 equity shares in this IPO and amounting to Rs. 191,800.

 

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.