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Yeh IPO kya kahta hai? HP ADHESIVES LIMITED

All that you should know about the Company before applying for the IPO.

December 14, 2021     

The public issue of equity shares of HP Adhesives Limited will open for subscription on December 15, 2021 and closes on December 17, 2021. It is expected to list on the stock exchanges on December 27, 2021. What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

The Company is a fast-growing multi-product, multi-category consumer adhesives and sealants company. It is amongst the leading manufacturing companies of PVC solvent cement in India. It manufactures 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 have applications in multiple industries such as plumbing and sanitary, drainage and water distribution, general purpose building/ construction and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing and other varied industries. It also sell ancillary products like ball valves, thread seal and other tapes and FRP products for drainage and architectural solutions.

The Company sells its products in India and exports in 21 countries. Its distribution network comprised of 4 depots situated in Delhi, Kolkata, Bengaluru and Indore and more than 750 distributors who cater to more than 50,000 dealers in India. It has manufacturing facility in Raigad (Maharashtra).

Who are the Promoters of the Company?

Anjana Haresh Motwani and Karan Haresh Motwani

Positives about the Company

  • Wide product portfolio addressing the needs of varied customers across the industry
  • Extensive Sales and distribution network
  • Strategically located manufacturing facilities
  • Improving operational efficiency
  • Experienced Promoters with strong management

Who are its key competitors?

  • Pidilite Industries Limited

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects:

  • Funding the working capital requirements of the Company
  • Funding capital expenditure for expansion of production capacity at the existing manufacturing facility at Village Narangi, Raigad, Maharashtra
  • Funding capital expenditure for Proposed Expansion (at the additional unit having a proposed construction area on the plot adjacent to the current facility)
  • General corporate purposes

The Offer comprises a Fresh Issue by the company and an Offer for Sale by the selling shareholders. The company will not receive any proceeds from the Offer for Sale.

IPO Details

IPO Size ₹ 125.97 Crore*
Offer Mix Fresh Issue ₹ 113.44 Crore + Offer For Sale ₹ 12.53 Crore
Price Band ₹ 262 - ₹ 274
Lot Size 50 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 13,700 (1 lot) | Max. ₹ 1,91,800 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Bigshare Services Private Limited
Cut-off time for UPI Mandate Confirmation 20-Dec-2021 (up to 12:00 PM)
* at upper price band

Category Wise Availability*

QIB ₹ 94.48 Crore
(75% of Issue Size)
NIB ₹ 18.89 Crore
(15% of Issue Size)
Retail ₹ 12.60 Crore
(10% of Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens December 15, 2021
IPO Closes December 17, 2021
Finalization of the basis of allotment December 22, 2021
Unblocking of funds / Initiation of refunds December 23, 2021
Credit of equity shares to Demat accounts December 24, 2021
Listing of equity shares December 27, 2021
Source: Company RHP
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