HP Adhesives IPO Day 1: Issue Subscribed 21 Percent On First Day of Bidding

New Delhi: The Initial Public Opening (IPO) HP Adhesives on Wednesday opened for the subscription and it was subscribed 21 percent on the first day of bidding.

The issue received bids for 5.27 equity shares against the IPO size of 25.28 lakh equity shares.

Non-Institutional Investors (NII) and Qualified Institutional Buyers are yet to put in bids for the offer. On the other hand, Retail Investors bought 1.45 times of their reserved portion of shares.

According to market observers, the Grey Market Premium (GMP) of HP Adhesives may become available after the opening of its subscription today.

The IPO of 45.97 lakh shares comprises a fresh issue of 41.40 lakh equity shares and OFS for sale of Rs 4.57 lakh equity shares by selling shareholder Anjana Haresh Motwani.

As per the red herring prospectus filed with the Registrar of companies, the offer will constitute 25.02 percent of the post-offer-paid equity share capital of the company.

The amount raised through the issue will be utilised for working capital requirements and expansion of production capacity at existing manufacturing facility.

In the case of financials, the company reported revenue of Rs123.88 crore for the financial year FY21, showing steady growth in revenue over the last 2 years.

The company earned Rs 10 crores made small profit, which comes from the net loss in the previous year. The impact of the pandemic on the topline was relatively limited.

The adhesives and sealants manufactured by HP Adhesives find applications in many industry groups including plumbing, sanitary works, water distribution, construction, glazing operations, etc. Apart from this, sealants and adhesives also find applications in footwear, automotive, foam furnishing etc.

Also read:MapmyIndia IPO Subscribed 154.71 Times On Final Day

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