HP Adhesives IPO opens today; 10 Key points to note before subscribing to the public issue
HP Adhesives is the fast-growing multi-product, multi-category consumer adhesives and sealants company. For the largest product category – PVC solvent cement, HP Adhesives is one of the leading manufacturing companies in India in the consumer/ bazaar segment of the adhesive industry.
Date: HP Adhesives IPO subscription to start from today Dec 15 to Dec 17, 2021
Price band: The price range for the offer has been fixed at Rs 262 – 274 per share.
IPO Lot size: Investors can bid for a minimum of 1 lot, that is 50 equity shares and in multiples thereof. One lot is worth Rs 13,700 and maximum of 14 lots, i.e. 700 equity shares and its worth Rs. 1,91,800
Grey market premium: As per the sources, the company’s shares currently do not command a premium in the grey market [Also Read: HP Adhesives IPO GMP, Grey Market Premium]
Fund utilisation: HP Adhesives will use the IPO 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) area on the adjacent plot
Investor categories: Seventy five percent of the issue size has been reserved for qualified institutional buyers (QIBs), 15 percent for non-institutional investors, and 10 percent for retail investors.
Peers: Pidilite Industries is the peer group for HP Adhesives, the face value for both the company is Rs.10 and Net Asset Value (NAV) is Rs.9.74 for HP Adhesives and Rs.114.78 for Pidilite Industries
Promoters: Anjana Haresh Motwan and Karan Haresh Motwani are the company promoters
Lead managers: Unistone Capital Private Limited is the book running lead managers to the issue.
Registrar: Bigshare Services Private Limited is the Registrar for this issue.
Financials: HP Adhesives reported a profit of Rs 10.05 crore for FY21, up from loss of Rs 4.67 crore in FY20. Revenue during the same period increased to Rs 123.87 crore from Rs 97.90 crore
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