HP Adhesives IPO is open for subscription. Here’s everything you need to know

5 August 2022
4 mins read
HP Adhesives IPO is open for subscription. Here’s everything you need to know

HP Adhesives public offer goes live today on 15th of December 2021 and closes on 17th December 2021. The purpose of HP Adhesives public issue is to meet capital requirements and to expand the existing manufacturing capacity of their plant located in Maharashtra and construct a new one in a proposed area.

HP Adhesives Limited IPO – Summary

This initial public offering is a book-built issue with a price band of Rs. 262 to Rs. 274. One lot of the IPO has 50 shares with an FV of Rs. 10 per piece. In this offer, the fresh issue will comprise worth Rs. 113.40 crore whereas shares worth Rs. 12.6 crores are being offloaded by the existing shareholder.

After this three-day offer that ends on 17th December 2021, the allotment shall be finalized on 22nd December. After initiating the refunds on 23rd December, all the shortlisted investors will be credited with allotted shares on 24th December 2021. Stocks will list on stock bourses on 27th December 2021 after Christmas.

About HP Adhesives Ltd.

HP Adhesives Limited is a manufacturer of consumer adhesives and sealants. The company’s products include various types of products such as synthetic rubber, vinyl, and PVC. These products are used in various industries such as sanitary, plumbing, and water distribution. They are also used in various construction and interior applications.

As of 2021, their distribution network spanned across 4 major depots in India. They cater to 50,000+ dealer outlets in the country.

Offer Summary

The following table summarises the quantum of subscriptions offered to different participants.

Participants Offered
QIB At least 75% of the total size
Retail Investors Up to 10% of the total size
HNIs Up to 15% of the total size

Financial Synopsis

HP Adhesives has come up with strong numbers in the fiscal year 2020-2021 with increments in turnover and profitability as well as adding in the total assets of the company. The following table summarises its performance in comparison with two previous financial years.

Financial Data for the year ended Turnover/Revenue Profitability Net Assets
31.3.2021 Rs. 1,238.80 mn Rs. 100.60 mn Rs. 898.00 mn
31.3.2020 Rs. 980.00 mn Rs. (46.70) mn Rs. 568.10 mn
31.3.2019 Rs. 880.00 mn Rs. 40.00 mn Rs. 567.20 mn

For the third quarter of FY 2021-20 that ended in September 2021, the company made a net profit of Rs. 31 million with a turnover of Rs. 727.30 million. There was an addition of net assets of Rs. 151.10 mn in the September quarter taking the total assets to Rs. 1049.10 mn.

Noteworthy Data Points

  • With a variety of products such as acrylic, PVA, and silicone sealants, they are well-equipped to meet the demands of various industries.
  • The number of employees at the company has decreased by 9.5% in the past year. This is a negative sign for the company’s operations and performance.
  • The company’s quality assurance process involves conducting comprehensive quality checks on finished products and raw materials.
  • With over 800 distributors worldwide, the company has a huge inventory of its own. This ensures that its customers receive the best service possible.

 

FAQs

Who are the lead manager and registrar of HP Adhesives IPO?

Unistone Capital is the lead manager whereas Bigshare Services Private Limited is the registrar for this IPO.

What is the amount of capital required for investing in 1 lot of HP Adhesives IPO?

One lot of the HP Adhesives IPO comprises 50 shares with a higher band issue price of Rs. 274. Therefore, to invest in one lot of the IPO, one needs minimum capital of Rs. 13,700.

When and where will the shares of HP Adhesive be listed?

The shares of HP Adhesives will be listed on 27th December 2021 on both the stock exchanges, BSE and NSE.

 

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