HP Adhesives IPO will end on December 17.
New Delhi: HP Adhesives’ initial public offering (IPO) opened for registration on Wednesday and received a massive response from retail investors on its first day of bidding. The initial share sale attracted the number of bids of 65.29 thousand shares compared to the IPO size of 25,280,000 shares, which were registered 2.58 times (257%).
The retail individual investor section was oversubscribed 14.15 times and the non-institutional investor group was oversubscribed 0.04 times.
The 3-day public offering, with a price range of Rs 262-274 per share, will end on December 17.
Investors can bid on a minimum of 50 shares and 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 new offer to buy 4.14 million shares at a price of Rs 113.4 and an offer to sell about 4.57 lakh shares by shareholder Anjana Haresh Motwani for a total value of Rs 12.5.
Of the net issuance, 75% went to qualified institutional buyers, 15% went to non-institutional bidders, and 10% went to retail investors.
The company said it will use the proceeds from this issuance for working capital requirements and capacity expansion at its production facility in the village of Narangi in Raigad district in Maharashtra and an additional unit on an adjacent piece of land.
It will also expand installed capacity at existing product lines and add products to its portfolio.
HP Adhesives is a multi-product, multi-product consumer adhesives and sealant company. It is one of the leading manufacturers in the consumer segment of the adhesive industry for the largest product category – PVC solvent cement – in India.
