Capital Market  Last Updated at December 15, 2021 18:04 IST

The issue received bids for over 87.96 lakh shares as against 25.28 lakh shares on offer.

The initial public offer (IPO) of HP Adhesives received bids for 87,96,050 shares as against 25,28,500 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (15 December 2021). The issue was subscribed 3.48 times.

The issue opened for bidding on 15 December 2021 and it will close on 17 December 2021. The price band of the IPO is fixed at Rs 262-274. An investor can bid for a minimum of 50 equity shares in multiples thereof.

The offer comprises fresh issue of 41,40,000 equity shares and an offer for sale by selling shareholders of up to 4,57,200 equity shares.

Ahead of the IPO, HP Adhesives on Thursday, 9 December 2021, finalized allocation of 20,68,700 equity shares to anchor investors at Rs 274 each, aggregating to Rs 56.68 crore.

The company proposes to utilize the net proceeds from the fresh issue towards funding capital expenditure for expansion of production capacity at the existing manufacturing facility at Raigad, Maharashtra and at the additional unit having a proposed construction area admeasuring about 4,532.57 square metres (built-up) area on the adjacent plot amounting Rs 25.51 crore and funding the working capital requirements of the company amounting Rs 54 crore and balance towards general corporate purposes.

HP Adhesives is a fast-growing multi-product, multi-category consumer adhesives and sealants company. The company manufactures a wide range of consumer adhesives and sealants such as PVC (polyvinyl chloride), cPVC (chlorinated polyvinyl chloride) and uPVC (unplasticized polyvinyl chloride) solvent cement, synthetic rubber adhesive, PVA (polyvinyl acetate) adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through network of distributors and direct customers.

The company also manufactures these products for select large PVC pipe manufacturing companies under co-branding or private label on order basis. It also sell ancillary products like ball valves, thread seal and other tapes and FRP (fiber-reinforced plastic) products for drainage and architectural solutions that are distributed along with its products to the end customers through distribution network.

The company reported a net profit of Rs 3.10 crore and total income of Rs 70.52 crore in the six months ended on 30 September 2021.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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