HP Adhesives IPO Review: HP Adhesives initial public offer (IPO) will open for subscription on December 15th, 2021, and close on December 17th, 2021. The Maharashtra based company is looking to raise Rs. 125.96 crores through the IPO. In this article, we take a closer look at the HP Adhesives Ltd IPO Review and its possible future prospects. Keep Reading to find out!
Table of Contents
About the Company
Founded in 1978, HP Adhesives is part of the HP Group. The HP Group has businesses present in various sectors ranging from Adhesive, Plumbing Accessories, Textile, Logistics, Real Estate and Engineering. Amongst these HP Adhesives remains the flagship company of the group.
The company produces products in the consumer adhesives and sealants category. These include PVC, cPVC, and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants, and PVC pipe lubricants. Its most successful product is its PVC solvent cement.
HP Adhesives is the largest manufacturer of solvent cement in Asia. In addition o this the company also manufactures products for select large PVC pipe manufacturing firms under co-branding, private label, and on an order basis. The company’s other products include ball valves, thread seals and other tapes and FRP products for drainage and architectural solutions.
Taking a look at HP Adhesives latest financials it earned a profit of Rs 10.06 crore for the FY21. This was an increase in comparison to a loss of Rs. 4.67 crores last year. Its revenues increased from Rs. 95.47 crore to Rs. 118.16 for the same period.
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The company’s multi-product manufacturing facility is present in Narangi, Raigad (Maharashtra). The company also has over a distribution network of 4 depots. These are present in Delhi, Kolkata, Bengaluru and Indore. In addition to this, they also have more than 750 distributors who cater to more than 50,000 dealers in India.
HP Adhesives products have application in various industries like plumbing and sanitary, drainage and water distribution, general-purpose building/ construction, and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing, and other varied industries.
Key IPO Information
Anjana Haresh Motwani and Karan Haresh Motwani are the promoters of the company. They have appointed Unistone Capital as the lead manager to the issue. Bigshare Services has been appointed as the registrar to the issue.
| Particulars | Details |
|---|---|
| IPO Size | ₹125.96 Cr |
| Fresh Issue | ₹113.44 Cr |
| Offer for Sale (OFS) | ₹12.53 Cr |
| Opening date | Dec 15, 2021 |
| Closing date | Dec 17, 2021 |
| Face Value | ₹10 per equity share |
| Price Band | Rs 262-274 |
| Lot Size | 50 Shares |
| Minimum Lot Size | 1 |
| Maximum Lot Size | 14 |
| Listing Date | Dec 27, 2021 |
Purpose of the IPO
The proceeds of the IPO will be used for
- Funding capital expenditure at its existing manufacturing facility in Maharashtra.
- Funding working capital requirements
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In Closing
In this article, we covered the HP Adhesives IPO Review. The Initial Public Offering opens on December 14th and closes on December 16th. For investors, it can be a good opportunity to look into the company and apply for the IPO after analysing the prospects and strengths. Let us know what you think about the HP Adhesives IPO review in the comments below? Happy Investing!
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Aron, Bachelors in Commerce from Mangalore University, entered the world of Equity research to explore his interests in financial markets. Outside of work, you can catch him binging on a show, supporting RCB, and dreaming of visiting Kasol soon. He also believes that eating kid’s ice-cream is the best way to teach them taxes.
