HP Adhesives IPO opens today: Top 10 things to know about consumer adhesives and sealants company's public offer

Another IPO is all set for its secondary market debut. One of the fastest growing multi-products, multi-category consumer adhesives and sealants company in its segment, HP Adhesives Limited is opening its issue for subscription from Wednesday, December 15, 2021. Here are the top 10 things an investor should know before putting money in this IPO.  

1 Open and Close Date:  
The initial public offer of multi-category consumer adhesives and sealants company will open for subscription on December 15 and close on December 17, 2021.  

See Zee Business Live TV Streaming Below:

2 IPO Price Band:  
The company has fixed a price band of Rs 262 to Rs 274 per share for this public offer.  

3 IPO Issue Size:  
As per the company, around 4.6 million shares will be offered in the Rs 126 crore issue.

4 Objective of the IPO
The company plans to use proceeds from the offer for capacity expansion at its manufacturing unit at in Maharashtra and for general capital requirements.  

5 Lot size and minimum & maximum order
One can place a minimum order quantity of 50 equity shares, while a retail investor can make maximum subscription of Rs 2,00,000. For employees, maximum subscription amount has been capped at Rs 5,00,000. Maximum bid quantity for QIB Investors is 25,28,500 equity shares in multiple of 50 equity shares (calculated at higher end of the price band). Similarly, maximum bid quantity for NIB Investors is 11,49,300 equity shares in multiple of 50 equity shares (calculated at higher end of the price band).

6 Offer Detail

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.

7 Book Running Lead Manager and registrar:  

Unistone Capital Private Limited is Book Running Lead Manager, while the registrar's name is Bigshare Services Private Limited

8 Company details:

The company offers 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. The company 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.

9 Valuations:
Considering the TTM (Sept-2021) adjusted EPS of Rs.5.57 on post issue basis, the company is going to list at a P/E of 49.23 with a market cap of Rs.5, 035 mn while its peer namely Pidilite Industries Limited is trading at P/E of 89.75, says Marwadi Shares and Finance Ltd.  

10 IPO Market Timings:

The three-day initial public offer HP Adhesives will open for subscription at 10 am to and close at 5 pm.