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The shares of HP Adhesives will be listed the bourses on Monday. The company has fixed the initial public offering (IPO) price at ₹274 a share. According to market experts, the shares of HP Adhesives are likely to list with a hefty premium of ₹80 over the issue price of ₹274 in the grey market.
The IPO of the company was subscribed 20.96 times, thanks to a strong interest from the retail individual investors. The portion allotted for the retail investors was subscribed 81.24 times while the same for QIBs and NIIs was subscribed 1.82 times and 19.04 times, respectively.
Also read: HP Adhesives public issue subscribed nearly 21 times
The company had raised nearly ₹126 crore through the issue. The public issue 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
Ahead of the issue, 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.
Utility of funds
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, it said in the draft IPO paper.
Also read: IPO screener: HP Adhesives issue closes today; subscribed over 8 times
The company manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant.
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