HP Adhesives IPO
HP Adhesives IPO — date, price band, lot size & details 2021
HP Adhesives listed on 27 Dec 2021 at ₹315, 15% above the ₹274 issue price.
HP Adhesives makes consumer adhesives and sealants such as PVC solvent cement, synthetic rubber adhesives and silicone sealants. Its total income was Rs 123.88 crore in FY2021.
Stock price
HP Adhesives is listed — here is the live share price.
Researched & reviewed by
Abhishek Vohera,
Founder, IPO Guru
Last updated
Figures sourced from the RHP, BSE & NSE
Timetable
Key dates from opening to listing. Today is 11 November.
- Open 15 Dec 2021
- Close 17 Dec 2021
- Allotment 22 Dec 2021
- Refund/credit 23 Dec 2021
- Listing 27 Dec 2021
Issue summary
The terms of the offer, as filed.
| IPO Dates | 15 to 17 Dec, 2021 |
|---|---|
| Price Band | ₹262 – ₹274 |
| Face Value | ₹10 |
| Lot Size | 50 Shares |
| Issue Size | ₹125.96 Cr |
| Sale Type | Fresh capital cum OFS |
| Listing On | BSE, NSE |
| Registrar | Bigshare Services Private Limited |
| Min Investment | ₹ 13,700 |
Share of the offer set aside for each investor category, as stated in the offer document.
What will it cost me?
Bidding is in multiples of 50 shares at the ₹274 cut-off. Drag to size your application.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 50 | ₹13,700 |
| Retail (max) | 14 | 700 | ₹1,91,800 |
| S-HNI (min) | 15 | 750 | ₹2,05,500 |
| S-HNI (max) | 72 | 3,600 | ₹9,86,400 |
| B-HNI (min) | 73 | 3,650 | ₹10,00,100 |
Strengths & risks
Drawn from the offer document — the case for and against, side by side.
Strengths · 5
- 01Total income rose from Rs 87.98 crore in FY2019 to Rs 123.88 crore in FY2021.
- 02The company turned from a loss of Rs 4.67 crore in FY2020 to a profit of Rs 10.06 crore in FY2021.
- 03Rs 113.44 crore of the Rs 125.96 crore issue was fresh capital for the company.
- 04Net worth rose from Rs 12.66 crore on 31 March 2021 to Rs 37.56 crore on 30 September 2021.
- 05It sells through more than 750 distributors and 4 depots.
Risks · 5
- 01Net worth was very small before the issue, at Rs 2.48 crore on 31 March 2020.
- 02Total borrowing was Rs 29.74 crore on 30 September 2021, close to net worth of Rs 37.56 crore.
- 03The pre-issue P/E was 38.76 at the upper band of Rs 274, based on EPS of Rs 7.07.
- 04Profit has been uneven, from Rs 4.00 crore in FY2019 to a loss in FY2020 and Rs 10.06 crore in FY2021.
- 05Promoters held 95.31% before the issue, as per the RHP.
Three years of numbers
All figures in ₹ crore, as reported in the HP Adhesives offer document.
| Metric | 30 Sep 2021 | 31 Mar 2021 | 31 Mar 2020 | 31 Mar 2019 |
|---|---|---|---|---|
| Assets | 104.91 | 89.78 | 56.81 | 56.72 |
| Total Income | 72.73 | 123.88 | 97.91 | 87.98 |
| Profit After Tax | 3.10 | 10.06 | -4.67 | 4.00 |
| EBITDA | 7.34 | 17.69 | 6.92 | 8.70 |
| NET Worth | 37.56 | 12.66 | 2.48 | 14.66 |
| Reserves and Surplus | 23.33 | -0.34 | -10.52 | 1.66 |
| Total Borrowing | 29.74 | 42.20 | 34.61 | 23.58 |
See how this IPO compares — view listing performance of all mainboard IPOs.
Valuation & key ratios
Ratios are for the latest full financial year reported in the HP Adhesives RHP. EPS and P/E are post-issue — the table below carries the pre-issue comparison.
HP Adhesives IPO Valuation
How the issue prices the company before and after the fresh shares are created.
| Valuation Metric | Pre-Issue | Post-Issue |
|---|---|---|
| EPS (₹) | ₹7.07 | ₹3.38 |
| P/E Ratio (x) | 38.76 | 81.07 |
| Market Cap at Offer Price (₹ Cr) | ₹120.14 | ₹251.30 |
Pre-issue figures use the shareholding reported in the RHP; post-issue figures use the shareholding once the fresh issue has created new shares. The two differ because of that dilution and because post-issue earnings per share are often annualised, so the change can run in either direction. Market capitalisation is calculated at the ₹274 offer price. Compare the post-issue P/E against listed peers before deciding — a premium there is growth you are paying for in advance.
Where the money goes
₹96.75 Cr of the issue is earmarked to named objects.
About the company
Its range covers PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone and acrylic sealants, gasket shellac and PVC pipe lubricants. These are used in plumbing, drainage, construction, interiors, glazing, woodwork, footwear and automotive work. It also makes products for large PVC pipe makers under co-branding or private label.
It also sells ancillary products such as ball valves, thread seal tapes and FRP products. On 30 September 2021 it had 4 depots in Delhi, Kolkata, Bengaluru and Indore and more than 750 distributors, and it exports to several countries.
The IPO was Rs 125.96 crore, with Rs 113.44 crore of fresh issue and Rs 12.53 crore of offer for sale. Rs 54.00 crore was planned for working capital and Rs 25.51 crore for an expansion.
Interested in this IPO? Check the live subscription status or browse all upcoming mainboard IPOs.
The bankers & the filings
Who is running the book, and the documents this page is built from.
HP Adhesives IPO Documents
Read the filings this page is built from.
Lead Manager Track Record
How the book-running lead managers on this issue have priced their past IPOs, measured on listing day.
Unistone Capital
17 issues handled (15 mainboard, 2 SME)Best listing: Sigachi Industries (+249.7%). Weakest: Fabtech Technologies (0.0%).
Listing gain compares the listing-day opening price with the issue price, using the IPOs on IPO Guru that this lead manager has taken to market. A strong record reflects how the banker has priced past issues — it is not a forecast for this one. See every issue they have handled on the lead managers page.
Company contact
Frequently asked
What is the GMP of HP Adhesives?
The current Grey Market Premium is ₹50, or 18% over the issue price.
What is the HP Adhesives IPO price band?
₹262 to ₹274, on a face value of ₹10.
When is the allotment?
The basis of allotment is 22 December 2021, with listing on 27 December 2021.
How do I check allotment status?
On the IPO Guru allotment page or on the registrar's site — Bigshare Services Private Limited.
Every number here traces back to a filing.
IPO Guru tracks GMP, subscription and allotment for every Mainboard and SME issue. Every number on this page is sourced from the RHP, BSE & NSE.
Not investment advice. Grey market premium is an unofficial, unregulated indicator and is not a forecast.
