HP Adhesives Shares Make Strong Stock Market Debut, Lists At Premium Of 16%

Shares of HP Adhesives made a strong stock market debut on Monday, the stock opened for trading at Rs 319 on the BSE compared to its issue price of Rs 274 per share, marking an upside of 16 per cent. On the National Stock Exchange, HP Adhesives shares opened for trading at Rs 315, marking a premium of 15 per cent. The stock surged as much as 22 per cent to hit an intraday high of Rs 334.95 on the BSE.

HP Adhesives shares were in high demand during the three-day share sale via initial public offering (IPO) which ended on December 17. Portion reserved for retail investors was subscribed 81 times, portion set aside for Non Institutional Investors was booked 19 times while pie set aside for Qualified Institutional Buyers (QIBs), which include large investors like banks, financial institutions, foreign institutional investors (FIIs) and insurance companies was subscribed 1.82 times.

HP Adhesives raised Rs 125.96 crore from the IPO which consisted of fresh issue of Rs 113.44 crore and an offer for sale worth Rs 12.53 crore. The company will use the proceeds from the IPO for funding the working capital requirements of the company and for funding capital expenditure for expansion of production capacity at the existing manufacturing facility in Maharashtra and at the additional unit having a proposed construction area admeasuring about 4,532.57 square metres.

HP Adhesives Limited is an adhesives and sealants company. 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 lubricants.

As of September 30, 2021, the company has a distribution network 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.

As of 10:34 am, HP Adhesives shares traded 22 per cent higher from issue price at Rs 334.95.