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HP Adhesives IPO: The HP Adhesives IPO was subscribed 21 times on the final day of the bidding process, receiving bids for 5.3 crore equity shares as against the 25.3 lakh equity shares on offer. The initial public offering of HP Adhesives was subscribed almost 21 times on December 17, the third and final day of the bidding process. The issue received bids for 5.3 crore equity shares as against the 25.3 lakh equity shares on offer.
The initial public offering of HP Adhesives was subscribed almost 21 times on December 17, the third and final day of the bidding process. The issue received bids for 5.3 crore equity shares as against the 25.3 lakh equity shares on offer.
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Retail investors subscribed 81.2 times to the IPO, and non-institutional subscribers put in bids for 19 times against the portion reserved for them. Qualified institutional buyers subscribed 1.8 times.
HP Adhesives is a fast-growing, multi-product, multi-category consumer adhesives and sealants company. For PVC solvent cement, it is among the leading manufacturers in India in the consumer segment of the adhesive industry.
The company manufactures a wide range of consumer adhesives such as PVC, cPVC, uPVC solvent cement, synthetic rubber adhesive, among others. It sells these products across India through an extensive distribution network of distributors. It also exports products to several countries, through a network of distributors and direct consumers.
Shares were available for bidding in a price band of Rs 262-274 apiece under the IPO.
Brokerages recommended subscribing to the IPO.
Hem Securities said the company is bringing the issue at P/E multiple of 38 times on post issue FY21 EPs. "The company with its wide product portfolio addressing the needs of varied customers has experience promoters with the strong management team having domain knowledge. Also, the company has strategically located manufacturing facilities with improving operational efficiency," it said.
The company plans to use proceeds from the issue to fund the working capital requirements of the company. It also needs funds for capital expenditure for the expansion of production capacity at the existing manufacturing facility in Maharashtra.
(Edited by : Yashi Gupta)