HP Adhesives Limited
mainboardlistedAbout the company
Founded by the Motwani family in 1978, HP Adhesives is a leading manufacturer of adhesives and sealants in India. From plumbing, sanitary, drainage and water distribution to footwear and automotive, the company’s products have a wide range of applications. Over the last three years, the company’s financial performance has been a mixed bag. In FY20, the company suffered a loss of ₹4.6 crore. But it managed to bounce back in the following year and reported a profit of ₹10 crore in FY21. Now, the company is all set to launch its IPO and use the net proceeds to fuel its expansion. **Key highlights** * HP Adhesives is among the fastest-growing multi-product adhesives and sealants companies. * Besides India, the company sells its products in 21 other countries. * It has 750 distributors who cater to 50,000 dealers across India. **Strengths** * Is a well-established brand, which offers high quality products with efficient pricing * Is the largest manufacturer of PVC adhesive with a 14-16% market share **Risks** * The new variant could dent its sales. In April and May 2020, its average monthly sales dropped drastically due to the pandemic * Low utilisation of the capacity. In FY21, the capacity utilisation for solvent cement, other adhesive and sealants stood at 51%, 34% and 52%, respectively **Good to know** India’s consumer adhesive market is expected to clock 9%-10% CAGR between 2021 and 2026 driven by economic recovery and growth in end-user industries. Being one of the leading companies in this segment, HP Adhesives is well-positioned to benefit from this stellar growth. Also, the rising demand for wooden furniture could be a major tailwind for the company.
Strengths
Risks
Financial performance (₹ Cr)
IPO Roadmap / Timeline
IPO Opens
Completed15 Dec 2021Bidding starts for all investor categories
IPO Closes
Completed17 Dec 2021Last day to place your bid
Basis of Allotment
Completed17 Dec 2021Share allotment finalised
Refund Initiation
Completed23 Dec 2021Refunds credited for non-allottees
Credit to Demat
Completed22 Dec 2021Allotted shares credited to demat account
Listing on Exchange
Completed27 Dec 2021Shares list on NSE / BSE
Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.
Lot size & minimum investment
| Investor Type | Min Lots | Min Shares | Min Amount | Max Lots | Max Amount | Notes |
|---|---|---|---|---|---|---|
| Retail | 1 | 50 | ₹13,700 | 14 | ₹191,800 | ≤ ₹2,00,000 |
| sHNI (Small HNI) | 15 | 750 | ₹205,500 | 72 | ₹986,400 | ₹2L – ₹10L |
| bHNI (Big HNI) | 73 | 3650 | ₹1,000,100 | 78 | ₹1,068,600 | > ₹10L |
Shares reserved per category & allotment probability
| Category | Reservation | Shares Offered | Amount (₹ Cr) | Shares Bid | Subscribed | Allotment % |
|---|---|---|---|---|---|---|
| QIB | 50% | 2,350,747 | 63 | 0 | 0.00x | 100% |
| NII | 15% | 705,224 | 18.9 | 0 | 0.00x | 100% |
| Retail | 35% | 1,645,523 | 44.1 | 0 | 0.00x | 100% |
Retail is a lottery-based allotment when oversubscribed; QIB/NII get pro-rata. Probability ≈ 1 / subscription times (100% if under-subscribed).
