HP Adhesives IPO was registered 8.03 times on the second day of release
HP Adhesives Limited’s initial public offering (IPO) was registered 8.03 times on the second day of issuance, according to registration data on stock exchanges. The adhesives and sealant company’s IPO opened on December 15 and will close on Friday, December 17 – remaining open to investors for a three-day period.
On Thursday, the section dedicated to retail individual investors was registered 40.29 times – the highest among the three investor groups. The section dedicated to non-institutional investors was registered 1.90 times, while the section for qualified institutional buyers or QIBs was registered 0.34 times today.
In addition to net issuance, 75% goes to qualified institutional buyers, 15% goes to non-institutional bidders, and 10% goes to retail investors. The company is offering up to 45,97,200 equity shares in the price range of Rs 262-274 per equity share.
HP Adhesives Limited manufactures a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cements, neoprene adhesives, PVA adhesives, silicone sealants, acrylic sealants, pads shellac gaskets, other sealants and PVC pipe lubricants.
These adhesives and products have applications in many industries such as plumbing and sanitation, drainage and water distribution, furniture, footwear, automotive, foam furniture, etc.
” At the upper end of the price range, the HP Adhesives IPO is valued at a PE ratio of ~50x FY21 EPS (on a fully diluted basis). This number is lower than Pidilite Industries listed in the same industry (90 times). However, with better brand recall and a leading position, Pidilite is expected to offer a higher valuation.
With the company’s strong product profile, healthy rise in the leading industry, strong market share, improving financial record and runway for strong growth, we remain “Positive” in terms of growth. long-term outlook,” registered investment advisor SEBI INDmoney said in a statement.
