HP Adhesives Restricted’s preliminary public supply (IPO) was subscribed 8.03 instances on the second day of its challenge, in accordance with subscription information from inventory exchanges. Adhesives & Sealants The corporate’s IPO opened on December 15, and can shut on Friday, December 17 – open to traders for a interval of three days.
On Thursday, the portion reserved for retail particular person traders was subscribed 40.29 instances, the very best among the many three teams of traders. The portion put aside for non-institutional traders was subscribed 1.90 instances, whereas the portion reserved for Certified Institutional Consumers or QIBs was subscribed 0.34 instances at the moment.
Of the web challenge, 75 per cent is reserved for certified institutional consumers, 15 per cent for non-institutional bidders and 10 per cent for retail traders. The corporate is providing 45,97,200 fairness shares within the value band of Rs 262-274 per fairness share.
HP Adhesives Ltd. manufactures a variety of client adhesives and sealants comparable to PVC, CPVC, and uPVC solvent cements, artificial rubber adhesives, PVA adhesives, silicone sealants, acrylic sealants, gasket shellac, different sealants and PVC pipe lubricants.
These adhesives and merchandise have functions in lots of industries comparable to plumbing and sanitary, drainage and water distribution, woodworking, footwear, automotive, foam-furnishing.
“On the excessive finish of the value band, HP Adhesives IPO is priced at FY21 EPS (on totally diluted foundation) at a PE ratio of ~50 instances. That is lower than the listed peer Pidilite Industries (90 instances). Nonetheless, given the improved model recall and management place, Pidilite is anticipated to command larger valuations.
Given the corporate’s sturdy product profile, sturdy progress in topline, sturdy market share, bettering monetary profile and robust runway for progress, we stay “optimistic” on the long-term prospects of the problem,” mentioned SEBI-registered funding advisor INDmoney. Stated a report.