HP Adhesives IPO Price | HP Adhesives IPO GMP Today | HP Adhesives IPO Review | HP Adhesives IPO Analysis |
The HP Adhesives IPO will begin on December 15, 2021, and end on December 17, 2021. The company intends to boost – crores through an initial public offering (IPO) that includes a fresh issue of – crores and an OFS of 4,57,200 equity shares. HP Adhesives is an Indian adhesive and sealants firm that is a market leader in Asia for solvent cement. The company has strong financials and a large distribution network in India, with 50000 dealers and 759 distributors. In 2021, the company reported revenue of 123.88 crores, compared to 86.83 crores in 2020. The pricing range for the IPO is – to – per equity share. The IPO of HP Adhesives will be listed on the NSE and BSE.
About HP Adhesives Company
HP Adhesives is a fast-growing and Asia’s biggest consumer adhesives and sealants firm with a wide range of products and categories. It is one of the leading industrial firms in India in the consumer/bazaar section of the adhesive market for its major product category, PVC solvent cement. Apart from solvent cement, it is the leading manufacturer of the HP Group and provides a diverse variety of adhesives and sealing materials. HP Adhesives IPO produces a variety of consumer adhesives and sealants, including PVC, cPVC, and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants, and PVC pipe lubricant, which are sold throughout India and exported to several countries via a network of distributors and direct customers.
HP Adhesives also produces similar products under co-branding or private label for a few significant PVC pipe manufacturers on a case-by-case basis. Apart from the aforementioned items, it also sells ancillary products such as ball valves, thread seals, and other tapes and FRP materials for drainage and architectural solutions, which are sold to end-customers through our distribution network alongside our products. Plumbing and sanitary, drainage and water distribution, general-purpose building/construction, and interior operations, as well as glazing operations, woodwork, footwear, automobile, foam-furnishing, and other diverse industries, use the aforementioned adhesives and sealant materials. As of June 30, 2021, the company’s distribution network consists of four depots and more than 750 distributors in India, serving more than 50,000 dealers. It operates out of a multi-product manufacturing facility in Village Narangi, Raigad (Maharashtra) as of June 30, 2021. The manufacturing facility is conveniently situated near the Jawaharlal Nehru Port Trust.
Highlights of HP Adhesives IPO
- In Asia, it is the leader in the production of solvent cement.
- The company offers more than 25 new adhesives and sealants products to meet the needs of consumers.
- It serves almost 74 OEM clients and has a total of 26746 retail locations in India.
- With a yearly manufacturing capacity of 15400+ metric tonnes, HP Adhesives serves a vast client base.
- It is an expert with over 35 years of experience in the field.
Competitive Advantages
Some of the major Competitive advantages are as follows:
- Growing business with a well-known brand
- With a diverse customer base comes a diverse product offering.
- Multiple SKUs and a large product portfolio
- In India, they have a large distribution network.
- Customers who are large players
- International presence is well-established.
- R&D is set up to ensure that products are constantly improved and new ones are developed.
- Manufacturing setup that is both efficient and expandable
- Prioritize quality.
- A skilled management team with a loyal workforce.
- HP Adhesives offers a wide range of innovative products to the electric, plumbing, and mechanical industries. Acrylic and PVA-based adhesives, PVC, and silicone sealants are just a few examples.
- The company owns over 45 stock points across the country and around the world, thanks to its 864 distributors. Customer service has always been excellent because of the company’s broad distribution network.
- For both finished products and raw materials, the organization conducts thorough quality tests. Viscosity, tensile testing, density analysis, gas chromatography-mass spectrometry, and hydrostatic burst strength are some of the sophisticated quality determination tests.
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Limitations
- According to a survey, the number of employees at HP Adhesives has decreased by 9.4% in the last year. Shortly, a sustained drop in the workforce at a similar rate could be damaging to business operations and firm success.
Opportunities
Some of the major Opportunities are as follows:
- This year, the growing trend of working remotely has boosted the demand for cheap residences in Tier 2 and Tier 3 cities. The ticket prices range from Rs. 40 lakhs to Rs. 50 lakhs. With ever-increasing urbanization in an expanding country like India, these prices are projected to rise. It has the potential to accelerate HP Adhesives’ growth because its products are used in building and furnishings.
- Since the adhesives and sealants market caters mostly to this sector, this rise in India, Singapore, and China is another driver of HP Adhesives’ growth.
Company Risks
Some of the major companies’ risks are as follows:
- Increasing raw material costs: As crude oil prices rise, raw material derivatives become more expensive, stifling market growth.
- Strict environmental regulations: HP Adhesives’ core products, solvent-based adhesives, can react with ambient nitrogen, causing respiratory issues. As a result of these concerns, tight limits for volatile organic compounds (VOC) have been enacted, forcing businesses to limit the manufacture of these items.
Objectives of the Issue
- Accounting for the company’s working cash needs
- Funding capital expenditures for the development of production capacity at a current manufacturing plant in Maharashtra, as well as a new unit with a proposed construction size of 4,532.57 square metres.
HP Adhesives IPO Date & Price Band Details
| IPO Opening Date | 15 December 2021 |
| IPO Closing Date | 17 December 2021 |
| Face Value: | ₹10 Per Equity Share |
| Price Band: | ₹- to ₹- Per Share |
| IPO Size: | Approx ₹- Crores |
| Fresh Issue: | Approx ₹- Crores |
| Offer for Sale: | Approx 4,57,200 Equity Shares |
| Face Value: | ₹10 Per Equity Share |
| Price Band: | ₹- to ₹- Per Share |
| Listing on: | BSE & NSE |
| QIB Quota: | 75% |
| Retail Quota: | 10% |
| NII Quota: | 15% |
| Discount: | N/A |
| DRHP Draft Prospectus: | Click Here |
| RHP Draft Prospectus: | Click Here |
Tentative Timetable for HP Adhesives IPO
The Tentative Timetable for HP Adhesives IPO is given in the table below
| Price Band Announcement: | December 2021 |
| Anchor Investors Allotment: | December 2021 |
| IPO Opening Date | 15 December 2021 |
| IPO Closing Date | 17 December 2021 |
| Basis of Allotment: | 22 December 2021 |
| Refunds: | 23 December 2021 |
| Credit to Demat Account: | 24 December 2021 |
| IPO Listing Date: | 27 December 2021 |
HP Adhesives IPO Market Lot
| Minimum Lot Size: | Minimum – Shares for 1 lot |
| Maximum Lot Size: | Maximum – Shares for 13 lot |
| Minimum Amount: | ₹- for 1 lot |
| Maximum Amount: | ₹- for 13 lot |
HP Adhesives IPO Financial Report
The HP Adhesives IPO Financial Report is given in the table below:
| Particulars | 30 – September – 2021 | 31 – March -2021 | 31 – March -2020 | 31 – March -2019 |
| Total Assets | 1,049.10 Million | 897.78 Million | 568.11 Million | 567.17 Million |
| Total Revenue | 727.32 Million | 1,238.79 Million | 979.07 Million | 879.76 Million |
| Profit After Tax | 31.02 Million | 100.59 Million | – 46.70 Million | 40.00 Million |
Promoters Holding for HP Adhesives IPO
| Pre Issue Share Holding | 95.31% |
| Post Issue Share Holding | % |
Company Promoters
The HP Adhesives IPO is as follows:
| S. No. | Company Promoters Name |
| LONE FURROW INVESTMENTS PRIVATE LIMITED | |
| GANGADI MADHUKAR REDDY | |
| AGILEMED INVESTMENTS PRIVATE LIMITED |
Lead Managers of HP Adhesives PO
Some of the Lead Managers of HP Adhesives are as follows:
| S. No. | Managers Name |
| Anjana Haresh Motwani | |
| Karan Haresh Motwani |
HP Adhesives IPO Registrar
| Address: | Bigshare Services Pvt Ltd |
| Contact Number: | + 91-22-6263 8200 |
| E-mail id: | ipo@bigshareonline.com |
| Official Website: | Website: http://www.bigshareonline.com |
Daily HP Adhesives IPO GMP Live Rates with Kotak rates
| Date | GMP | Kostak | Subject to |
| 05 December | ₹- | ₹- | ₹- |
| 06 December | ₹- | ₹- | ₹- |
| 07 December | ₹- | ₹- | ₹- |
| 08 December | ₹- | ₹- | ₹- |
Company Address:
- Address:
- HP Adhesives Limited
- 11, Unique House, Chakala Cross Road,
- Andheri East, Mumbai – 400,099,
- Maharashtra, India.
- Contact Number: 022 68196300
- Email id: investors@hpadhesives.com
- Website: https://www.hpadhesives.com/