HP Adhesives IPO subscribed 20.96 times on final day; RIIs portion booked 81.24 times

The initial public offering (IPO) of HP Adhesives Limited, an adhesive and sealants company, closed with 20.96 times subscription on Friday, December 17, 2021. The IPO received bids for 5,29,89,650 shares against 25,28,500 shares on offer, according to the BSE data.

The category for retail individual investors (RIIs) was subscribed 81.24 times, as they placed bids for 3,73,49,550 shares against an offer of 4,59,720 shares. The non-institutional investors (NIIs) received 19.04 times subscription as they placed bid for 1,31,26,950 shares against 6,89,580 shares on offer. The qualified institutional buyers (QIBs) portion was subscribed 1.82 times as QIBs placed bids for 25,13,150 shares against 13,79,200 shares reserved for them.

The Rs 126 crore IPO has a fresh issue worth Rs 113.44 crore and an offer for sale (OFS) worth Rs 12.53 crore. The price range for the offer was fixed at Rs 262-274 per share and the retail investor were eligible to place bids for a minimum lot of 50 shares worth Rs 13,700.

Of the net issue, 75 per cent is reserved for qualified institutional buyers, 15 per cent for non-institutional bidders, and 10 per cent for retail investors.

The company will use the net proceeds from the fresh issue for funding the working capital requirements of the company and funding capital expenditure for expansion of production capacity at the existing manufacturing facility at Village Narangi, Raigad, Maharashtra and at the additional unit having a proposed construction area admeasuring about 4,532.57 sq. mtrs. (built-up) the area on the adjacent plot. ("Proposed Expansion"):

• To expand our existing installed capacities for the existing product lines; and
• To enable us to also add new products to our existing product portfolio.

The proceeds will also be used for general corporate purposes.

Unistone Capital Private Limited were appointed as the book running lead manager of the issue and Bigshare Services Private Limited is the registrar for it. Shares of HP Adhesives will list on the BSE and the National Stock Exchange on December 27, 2021.

HP Adhesive is a fast-growing multi-product, multi-category consumer adhesives and sealants company. For its largest product category – PVC solvent cement, the company is amongst the leading manufacturing companies in India in the consumer/ bazaar segment of the adhesive industry. (Source: CRISIL Research).

It manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through a network of distributors and direct customers.