The ₹126-crore initial public offering of HP Adhesives was subscribed 20.96 times, mainly thanks to a strong response from retail investors.
The company's IPO received bids for 5.29 crore shares against 25.28 lakh shares on offer, according to BSE data.
The category for retail individual investors (RIIs) was subscribed whopping 81.24 times, while non institutional investors portion received 19.04 times and qualified institutional buyers by 1.82 times.
The company came out with a IPO price range of ₹262-274 a share.
The public offer comprised a fresh issue of 41.40 lakh equity shares (₹113.44 crore) and an offer for sale of 4.57 lakh equity shares (₹12.53 crore) by selling shareholder Anjana Haresh Motwani.
Anchor Investors
On Tuesday, HP Adhesives had raised ₹56.68 crore from three anchor investors - Coeus Global Opportunities Fund, 3 Sigma Global Fund and AG Dynamic Funds - by allotting 20.68 lakh shares at ₹274
The company plans to use the issue proceeds for working capital requirements and expansion of production capacity at the existing manufacturing facility at Village Narangi (Maharashtra).
The fresh issue money will also get utilised for expansion of existing installed capacities for existing product lines; and addition of new products to the existing product portfolio.
Published on December 17, 2021
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