The long-awaited public offering of HP Adhesives is among the slew of many IPOs slated for December 2021. The sealant and adhesives company is looking to launch its initial public offering in mid-December. Get all the details for this IPO below!
Key Highlights of HP Adhesives’ IPO
- The initial public offer of HP Adhesives will launch on 15 December 2021, and the subscription will stay open till 17 December 2021.
- The size of this IPO is 45.97 lakh shares. It comprises a new issue of 41.40 lakh shares and an offer of sale (OFS) of 4.57 lakh shares.
- Moreover, as per the draft red herring prospectus, the offer will comprise 25.02% of post-offer equity capital that is paid up.
Other details of the IPO are as follows:
- Issue Type: Book Built
- Face Value: 10 per equity share
- IPO Price: 262 to Rs. 274 per equity share
- Listing At:National Stock Exchange, Bombay Stock Exchange
- Market Lot:50 Shares
Objectives of this IPO
HP Adhesives has launched its IPO for the following reasons:
- To fund the working capital requirements of the company
- Raising capital to expand its existing production capacity at the manufacturing facility in Narangi, Raigadand
- Building an additional facility at the adjacent plot with a construction area measuring 4,532.57 sq meters.
About the Company
So what does HP Adhesives do? Below is a brief idea of this company’s operations.
This company manufactures a wide array of adhesive and sealant products such as:
- Acrylic sealant
- cPVC
- Gasket shellac
- PVA Adhesives
- PVC
- Silicone sealant
- Synthetic rubber adhesive
- uPVC solvent cement
These sealants and adhesives are used in many industries such as:
- Building and construction
- Drainage and water distribution
- Foam-furnishing
- Footwear
- Glazing operations
- Plumbing and sanitary
- Woodwork, etc.
Since 30 September 2021, this company has around 4 depots in Delhi, Kolkata, Bengaluru and Indore. Also, 750 distributors cater to 50,000 dealers in India. In the Financial Year 2020- 2021 this company sold its products to around 21 countries worldwide.
Strengths of the Company
Why should an investor be interested in HP Adhesives? Here is a list of their apparent competitive strengths that set this company apart.
- It is a growing company with the potential to produce strong returns.
- Moreover, it has an established brand presence.
- It has a wide array of products and a similarly broad customer base.
- There is also an equally widespread distribution network around India.
- HP Adhesives has many established industry players as consumers.
- Moreover, it is pretty well-known in the international markets.
- The company has also made a name for itself with a strong focus on quality.
- Importantly, there is a strong emphasis on new product development.
- Lastly, an erudite management team with a dependable employee base is at the helm.
Company Financials
Below is an overview of the company financials:
| For the year ended |
31 March 2021 |
31 March 2020 |
31 March 2019 |
|
| Total Assets |
897.78 |
568.11 |
567.17 |
|
| Total Revenue |
1,238.79 |
979.07 |
879.76 |
|
| Profit After Tax |
100.59 |
(46.70) |
40.00 |
|
Note: Values are in Rs. Millions
Bottom Line
That was a brief rundown of what to expect from the HP Adhesives IPO. Unistone Capital is the book running lead manager, and Bigshare Services is the registrar. If you are keen to invest in this company, do so only after thorough research and analysis.
Frequently Asked Questions
- Who are the company’s promoters?
Ans. Anjana Haresh Motwani and Karan Haresh Motwani are the company’s promoters.
- What is the tentative IPO timeline for HP Adhesives?
Ans. The tentative timeline for HP Adhesives’ IPO is as follows:
- IPO Opening Date (15 December 2021)
- IPO ClosingDate (17 December 2021)
- Basis of Allotment Date (22 December 2021)
- Refund Initiation Date (23 December 2021)
- IPO Listing Date ( 27 December 2021)
- What is the maximum an investor can invest in HP Adhesives?
Ans. A retail investor can go for up to 14 lots, that is, 700 shares.
- What is the reservation size of the shares?
Ans. Qualified Institutional Buyers have around 75% of the total offer. Retail shares are pegged at not more than 10% of the issue, while High Networth Individuals can bid for a maximum of 15% of the offer.
