HP Adhesives Makes Stellar Debut, Shares List At 16% Premium Over Issue Price

New Delhi: HP Adhesives made a stellar debut on the bourses as its shares got listed at Rs 319 on BSE, a premium of 16 42 per cent, over its issue price of Rs 274.

On the other hand on National Stock Exchange (NSE), the share was listed at a price of Rs 315.

The HP Adhesives Limited whose Initial Public Offering (IPO) was subscribed 20.96 times on the last day.

The HP Adhesive's IPO received bids for 5,29,89,650 shares against 25,28,500 shares on offer. The issue was open for subscription from 15 to 17 December 2021.

The credit of shares to the demat account of bidders was completed on December 24. The registrar for this IPO is Bigshare Services Pvt Ltd.

The IPO of 45.97 lakh shares comprised 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 constitutes 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 the 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, 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.

Notably, on Tuesday, HP Adhesives share price is Rs 351 after as it increased by 4.99 per cent.

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