HP Adhesives IPO - 7 Things to Know

HP Adhesives Ltd, a popular manufacturer of adhesives and sealants in India, is coming out with an IPO, which will be a combination of a fresh issue and an offer for sale. Here is the gist of the issue.
 

Seven interesting facts to know about HP Adhesives Ltd IPO

1) HP Adhesives manufactures a wide variety of consumer adhesives and sealants which can be used for PVC pipes, PVC tanks, synthetic rubber, silicone sealants, acrylic sealants etc. These adhesives and sealants are popularly used to prevent leakages of liquid and semi-liquid material and to prevent wastage.

2) The adhesives and sealants manufactured by HP Adhesives find application in a number of industry groups including plumbing, sanitary works, drainage, water distribution, construction, glazing operations etc. In addition, the sealants and adhesives also find application in footwear, automotive, foam furnishing etc.

3) The HP Adhesives IPO opens on 15-December and closes for subscription on 17-December. The basis of allotment will be finalized on 22-December while the refunds will be initiated on 23-December.

The demat credits to eligible shareholders will happen on 24-December while the actual listing on NSE and BSE will be done on 27-December.

4) The IPO will be a combination of a fresh issue and an offer for sale but the price band for the issue is yet to be finalized. The company proposes to offer 41.40 lakh shares as part of the fresh issue while promoters and early investors will offer 4.57 lakh shares as part of the offer for sale. The total shares on offer would be 45.97 lakh shares in all.

5) In terms of financials, the company reported revenues of Rs.123.88 crore for fiscal year FY21, showing a steady increase in revenues over the last 2 years.

The company made a small profit of Rs.10 crore in FY21, turning around from a net loss in the previous year. The impact of the pandemic on the top line was relatively limited.

6) The fresh funds will be used for working capital needs and for capacity expansion of its Raigad facility. It has a massive network of 750 distributors supplying to 50,000 dealers across India. HP Adhesives sells its products in more than 21 countries across the world.

Some of its strengths include multiple SKUs, diversified adhesives portfolio, presence in global markets and a wide distribution franchise.

7) The HP Adhesives IPO will be lead managed by Unicon Capital Services and the registrar to the issue will be Bigshare Services Private Limited.

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