HP Adhesives IPO listing: Shares debut at 16% premium; list at Rs 319 per share on BSE

The shares of HP Adhesives Limited made a decent debut on the exchanges on Monday, December 27, 2021. HP Adhesives shares were listed on the BSE at a handsome premium of Rs 319 per share against Rs 274 issue price fixed by the company for this public offer. This was a gain of Rs 45 per share or 16.42%.

On the NSE, shares debuted at Rs 315 apiece, a gain of Rs 41 or 14.96%

At 9.35 am, shares of consumer adhesives and sealants maker were trading at a 27 per cent premium or Rs 76 gain to Rs 350 per share, showed pre-open indicative price on the BSE.  

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The market capitalisation at the time of listing stood at Rs 8,790.71 crore.

Earlier, the initial public offer of HP Adhesives Limited was subscribed nearly 21 times on the last day of the IPO. The Retail Individual Investors (RIIs) were the lead subscribers with a whooping 81.24 times subscription, followed by the Non-Institutional Investors, who subscribed the issue 19.04 times, and the QIBs portion that was also subscribed almost twice.  

The company had fixed a price of Rs 262-274 per equity share to raise up to Rs 125.9 crore from the primary market. The issue comprised of a fresh issue of 41,40,000 equity shares worth Rs 113.44 crore and an offer for sale (OFS) of 4,57,200 equity shares worth Rs 12.5 crore.

As per the business profile of HP Adhesives Limited, the company offers a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India. It also sells ancillary products like ball valves, thread seal and other tapes and FRP products for drainage and architectural solutions that are distributed along with their products.    

Earlier, Zee Business Managing Editor Anil Singhvi on Monday too had said that the shares of Adhesives Limited are expected to list in Rs 325-375 range against issue price of Rs 274.  

"Hold shares with strict stop loss of the issue price," suggested the Market Guru.

The shares of Supriya Lifescience will be making exchange debut on Tuesday, December 28, 2021.