HP Adhesives IPO: Investors with high risk, high return mindset should apply for this offer, says Anil Singhvi

HP Adhesives Limited initial public offer (IPO) opened on Wednesday on a strong note as the issue was subscribed within an hour of opening, while the retail portion was booked seven times.

The three-day initial public offer will close on December 17, 2021. HP Adhesives Limited, one of the fastest growing multi-products, multi-category consumer adhesives and sealants company in its segment, has fixed the price band at Rs 262 to Rs274 per equity share.  

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Speaking about this IPO, Zee Business Managing Editor Anil Singhvi on Tuesday said though it is a small company that caters to consumer adhesives and sealants, what distinguishes this company is that it is a market leader in solvent cement products. The company also offers strong growth outlook due to capacity expansion, said the Market Guru. He said not just that it is also a profit-making company at the operational level.  

Talking of negatives, he said unorganised sector with high competition is one of the disadvantages of the company. It is a small company with volatile margins, he said.  

"Investors who look for opportunities in high risk and high return scenario should apply for this IPO," recommended Singhvi.  

आज खुलेगा HP एड्हेसिव्स का IPO,प्राइस बैंड ₹262-274
कंपनी में क्या हैं खास और कहां है जोखिम?
इश्यू में पैसा लगाएं या छोड़ दें?

जानिए इस वीडियो में अनिल सिंघवी से...#EditorsTake | #HPAdhesives | #IPOAlert | @AnilSinghvi_ pic.twitter.com/CSq8oDqtLb

— Zee Business (@ZeeBusiness) December 15, 2021

Earlier, the company has offered around 4.6 million shares in the Rs 126 crore issue. The IPO comprises a fresh offer of 4.14 million shares for Rs 113.4 crore and an offer for sale of about 457,000 shares by shareholder Anjana Haresh Motwani aggregating up to Rs 12.5 crore.

As much as 75 percent of the total IPO size has been reserved for qualified institutional buyers, 15 percent for non-institutional bidders, and 10 percent for retail investors.