HP Adhesives IPO to open this week : Check out the details

HP Adhesives IPO to open this week : Check out the details In this week, another IPO is lined up to open for subscription in the primary market. HP Adhesives, a multi-product, multi-category consumer adhesives and sealants company, will launch its maiden public offer on 15th of December for subscriptions.

HP Adhesives:

Established in 1978 by the Motwani family, HP Group has come a long way in various business streams. It interest range from Adhesive, Plumbing Accessories, Textile, Logistics, Real Estate and Engineering. Manufacturing a wide range of sealants and adhesives such as PVC, CpVC and uPVC solvent cement, PVA adhesives, synthetic rubber adhesive, acrylic sealant, silicone sealant, gasket shellac, PVC pipe lubricants, the company is one of the most presitigious brands in adhhesives. As of today, the company has a pan-India distribution network of more than 750 distributors in 23 states and 4 union territories who in-turn caters to more than 50,000 dealers, as per the company's website.

When:

The subscription will open on 15^th of December, i.e. Wednesday and close on Friday, i.e. on 17^th of December.

• Fresh Issue: ₹ 133.44 Cr
• Offer for sale:57 lakh shares.
• Price band: Rs 262-274 per equity share.
• Face value: Rs 10 apiece.
• Lot size: 50 shares and multiples
• Listing: NSE and BSE.
• Listing Date: Likely on 27^th of December
• Lead managers: Unistone Capital is the book running lead manager to the offer
• Registrar: Bigshare Services is the registrar.

Objectives of the IPO:

The company aims to utilize the funds for following purpose:

• Working capital requirements and expansion of production capacity at its existing manufacturing facility at Narangi village in Maharashtra’s Raigad district and at an additional unit on the adjacent plot.
• The company will also expand installed capacities for its product lines and also extend the portfolio.
• Meet general corporate purposes

HP Adhesives clocked a profit of Rs 10.06 crore in the financial year FY21 against loss of Rs 4.67 crore in previous year, but revenue increased to Rs 118.16 crore from Rs 95.47 crore in the same period. The company had also reported a net profit of Rs 3.1 crore for the six-month period ended September 2021, with a revenue of Rs 72.73 crore.