HP Adhesives IPO Subscribed 3.48 times On First Day Of Issue

Strong demand from retail investors led to the initial public offer (IPO) of HP Adhesives Limited getting subscribed 3.48 times on the first day of its issue on Wednesday.

The IPO of the adhesives and sealants company received bids for 87,96,050 shares against 25,28,500 shares put on offer under three categories, according to an update on the National stock exchange.

The category for retail investors was subscribed 18.57 times and those for non-institutional investors 38 per cent.

The company is offering up to 45,97,200 equity shares in the price range of Rs 262-274 per share.

Unistone Capital is the manager to the offer. The issue will close on December 17, 2021.

Investors can bid for a minimum of 50 equity shares and in multiples of 50 shares thereafter. Retail investors can invest a minimum of Rs 13,700 for one lot, and a maximum of Rs 1,91,800 for 14 lots.

The IPO consists of a fresh offer of 4.14 million shares for Rs 113.4 crore and an offer for sale of about 4.57 lakh shares by shareholder Anjana Haresh Motwani aggregating up to Rs 12.5 crore.

Of the net issue, 75 per cent is reserved for qualified institutional buyers, 15 per cent for non-institutional bidders, and 10 per cent for retail investors.

The company said it will use the proceeds from the issue for working capital requirements and capacity expansion at its manufacturing facility at Narangi village of Raigad district in Maharashtra and an additional unit on an adjacent plot.

It will also expand installed capacities at existing product lines and add products to its portfolio.