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HP Adhesives Limited’s Initial Public Offering (IPO) will open on December 15 for subscription and end on December 17, 2021. The price band is fixed at Rs 262-274 apiece.
The company plans to raise Rs 125.96 crore through the IPO, which comprises of fresh issue of shares worth Rs 113.44 crore and Offer For Sale worth Rs 12.53 crore. The face value of each equity share is Rs 10.
Company Summary
HP Adhesives Limited is a fast-growing multi-product, multi-category consumer adhesives and sealants company.
The company manufactures a wide range of consumer adhesives and sealants products 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.
The wide range of products are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through network of distributors and direct customers.
HP Adhesives also manufactures these products for select third-parties on order basis. In addition, they also provide ancillary products like ball valves, thread seal and other tapes and Fiber-reinforced plastic (FRP) products for drainage and architectural solutions.
As of September 30, 2021, our distribution network comprised of 4 depots situated in Delhi, Kolkata, Bengaluru and Indore and more than 750 distributors who cater to more than 50,000 dealers in India.
HP Adhesives has a manufacturing facility located at Narangi village, Raigad, Maharashtra, which is a multi- product manufacturing facility.
Their manufacturing facility is strategically located near to Jawaharlal Nehru Port Trust (JNPT) from where the company receives its supply of imported raw materials as well as from where we export to international market.
During FY21, the company has sold its products in 21 countries namely, Bahrain, Bangladesh, Ghana, Greece, Iraq, Kuwait, Mauritius, Nepal, Nigeria, Oman, Philippines, Qatar, Republic of Malawi, Saudi Arabia, Taiwan, Turkey, UAE, Uganda, UK, USA and Yemen.
Company Strengths
- Wide product portfolio addressing the needs of varied customers across the industry and well-established presence in International markets.
- Extensive sales and distribution network.
- Strategically located manufacturing facilities.
- Strong operational efficiency and executional capabilities.
- Experienced promoters with strong management team having robust domain knowledge.
Company Financials
Particulars | For the period ended (Rs in lakh) | |||
Apr-Sept FY22 | FY21 | FY20 | FY19 | |
Total Assets | 10,491.04 | 8,977.89 | 5,681.12 | 5,671.74 |
Total Revenue | 7,273.23 | 12,387.96 | 9,790.75 | 8,797.64 |
Profit After Tax | 310.24 | 1,005.96 | (467.05) | 400.07 |
Company Promoters
Anjana Haresh Motwani and Karan Haresh Motwani are the promoters of the company.
Purpose of the IPO
- The company plans to use the net proceeds from fresh issue of the IPO for their working capital requirements aggregating to Rs 54 crore.
- The company also wants to fund their capital expenditure for expansion of production capacity at the existing manufacturing facility at Narangi village, Raigad, Maharashtra and at the additional unit having a proposed construction area of about 4,532.57 sq. mtrs. (built-up) area on the adjacent plot (“Proposed Expansion”). They want to expand their existing installed capacities for the existing product lines and also add new products to their existing product portfolio. This would require about Rs 25.51 crore, according to their Red Herring Prospectus.
- In addition, the remaining proceeds from fresh issue will be used for general corporate purposes.
- The net proceeds from Offer For Sale will be received by selling shareholders.
IPO Details
IPO Opening Date | Dec 15, 2021 |
IPO Closing Date | Dec 17, 2021 |
Issue Type | Book Built Issue IPO |
Face Value | Rs 10 per equity share |
IPO Price | Rs 262 to Rs 274 per equity share |
Market Lot | 50 Shares |
Minimum Order Quantity | 50 Shares |
Listing At | BSE, NSE |
IPO Lot Size
Application | Lots | Shares | Amount (Cut-off) |
Minimum | 1 | 50 | Rs 13,700 |
Maximum | 14 | 700 | Rs 191,800 |