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HP Adhesives sets IPO price band at Rs 262-274, Issue to open on December 15, 2021

HP Adhesives Ltd, makers of adhesives and sealants, has set the price band of Rs. 262- Rs. 274 per share for its initial public offering. The IPO opens for subscription on
Wednesday, December 15, 2021 and closes on Friday, December 17, 2021.

The IPO constitutes 25.02 percent of the post-offer paid-up equity share capital of the company, comprising a fresh issue of upto 41,40,000 equity shares and an offer for sale of up to 4,57,200 equity shares amounting to a total issue size of Rs 125.96 crore. Of the total issue size, the company plans to use Rs 25.51 crore for capex purposes and Rs 54.00 crore towards working capital requirements.

Investors will be able to bid for a minimum of 50 shares amounting to Rs 13,700 at the upper price band, and in multiples of 50 shares thereafter. Retail investors will be able to bid for a maximum of 14 lots or 700 shares amounting to Rs 1,91,800 at the upper price band.Unistone Capital Private Limited is the Book Running Lead Manager to the issue. 

The Company is led by Mrs. Anjana Motwani, Chairperson & Executive Director, who has more than four decades of experience in this industry. Mr. Karan Motwani, Managing Director, has played a key role by introducing new products and expanding the sales network. Mr. Suresh Mehta, a qualified CA and CS, is a Non-executive & Independent Director, and has over three decades of experience. Ajeet Walavalkar and Rajendra Kumar Jain are two other Non-executive & Independent Directors of the
company.

Started as a partnership firm, HP Adhesives is a multi-product, multi-category consumer adhesives and sealants company. The company has a wide product portfolio consisting of PVC, uPVC, cPVC solvent cement, silicone, acrylic, PU and other sealants. It is also into the making of synthetic rubber adhesives, PVA adhesives and other ancillary products. In its largest product category, PVC solvent cement, HP Adhesives is among the leading manufacturing companies in India in the consumer/bazaar segment of the adhesive industry. In the current financial year (FY22), the company
has entered into the epoxy adhesives, spray paint segment.

The company has a pan-India distribution network and caters to international markets also. It has a network of 750 plus distributors across India, who serve more than 50,000 dealers. On the export front, it sold its products in 21 countries last year.

For the Financial Year 2020-21, HP Adhesives clocked a total income of Rs. 123.88 crore, an EBIDTA of Rs. 17.69 crores, and Profit After Tax of Rs. 10.06 crores. For the Financial Year 2019- 20, the Company’s efficiency ratios are: Avg. ROCE (%)79.50%.

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