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HP Adhesives Limited

HP Adhesives Limited

listed
₹13,100Min. investment

HP Adhesives Limited IPO Details

Price range₹262 – ₹274
IPO type
Regular
Lot size50 shares
Issue size₹126Cr
RHP/DRHP
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HP Adhesives Limited Timeline

  1. Bid start
    15 Dec 2021
  2. Bid end
    17 Dec 2021
  3. Allotment
    17 Dec 2021
  4. Release of funds
    23 Dec 2021
  5. Demat transfer
    22 Dec 2021
  6. Listing
    27 Dec 2021
Founded by the Motwani family in 1978, HP Adhesives is a leading manufacturer of adhesives and sealants in India. From plumbing, sanitary, drainage and water distribution to footwear and automotive, the company’s products have a wide range of applications. Over the last three years, the company’s financial performance has been a mixed bag. In FY20, the company suffered a loss of ₹4.6 crore. But it managed to bounce back in the following year and reported a profit of ₹10 crore in FY21. Now, the company is all set to launch its IPO and use the net proceeds to fuel its expansion.
Key highlights
  • HP Adhesives is among the fastest-growing multi-product adhesives and sealants companies.
  • Besides India, the company sells its products in 21 other countries.
  • It has 750 distributors who cater to 50,000 dealers across India.
Strengths
  • Is a well-established brand, which offers high quality products with efficient pricing
  • Is the largest manufacturer of PVC adhesive with a 14-16% market share
Risks
  • The new variant could dent its sales. In April and May 2020, its average monthly sales dropped drastically due to the pandemic
  • Low utilisation of the capacity. In FY21, the capacity utilisation for solvent cement, other adhesive and sealants stood at 51%, 34% and 52%, respectively
Good to know
India’s consumer adhesive market is expected to clock 9%-10% CAGR between 2021 and 2026 driven by economic recovery and growth in end-user industries. Being one of the leading companies in this segment, HP Adhesives is well-positioned to benefit from this stellar growth. Also, the rising demand for wooden furniture could be a major tailwind for the company.

Checklist

Risk analysis
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HP Adhesives Limited Contact Details

Company NameHP Adhesives Limited

How to apply for HP Adhesives Limited?

  1. Step 1

    Log in to your Upstox account to access IPO investments. Next, select the current IPO section.

  2. Step 2

    Specify IPO details. Enter the number of lots and the price you wish to apply for.

  3. Step 3

    Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.

  4. Step 4

    Mandate Notification. Your UPI app will receive a mandate notification to block funds.

  5. Step 5

    Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.

Hp Adhesives Limited IPO FAQs