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HP Adhesives makes strong debut, shares list at 16% premium over issue price

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HP Adhesives IPO listing, GMP: HP Adhesives made a strong debut on BSE and NSE, as its shares began their journey in the secondary market at a premium over its issue price. The listing was in line with the grey market trend. Dealers said HP Adhesives commanded a GMP of Rs 80 ahead of the listing on Dalal Street.

HP Adhesives makes strong debut, shares list at 16% premium over issue price
HP Adhesives shares made a strong debut on Dalal Street on Monday. On BSE, the stock of HP Adhesives, a Mumbai-based manufacturer of adhesives and sealants, listed at Rs 319 apiece, a premium of 16.4 percent over its issue price of Rs 274. On NSE, HP Adhesives shares opened at Rs 315 apiece, a premium of almost 15 percent.
The listing was in line with the trend seen in the grey market -- an unofficial market for unlisted securities -- prior to the debut on Dalal Street. Dealers said HP Adhesives' GMP or grey market premium stood at Rs 80 on Friday.

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Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities, had expected HP Adhesives shares to list at a premium of 20-25 percent. “On the valuation front, HP Adhesives seems to be expensive based on its performance in the first six months of FY22," he said.
HP Adhesives' listing on on BSE and NSE comes at a time when most IPOs have received a robust response from investors, though the recent sell-off in the market has dented the appeal of few debutants.
HP Adhesives' IPO was open for subscription from December 15 to December 17. The initial share sale was subscribed an overall 21 times, receiving bids for 5.3 crore equity shares as against the 25.3 lakh equity shares on offer.
The portion reserved for non-institutional investors (NIIs) was subscribed 19 times, and that for retail investors 81.2 times. The category of qualified institutional buyer (QIB) saw a subscription of 1.8 times.
Under the IPO, HP Adhesives shares were available for bidding in a price band of Rs 262-274 in multiples of 50.


HP Adhesives plans to utilise the proceeds from the initial share sale to fund its working capital requirements and capex for capacity expansion.
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