Blog

HP Adhesives Limited IPO : Financial Info. and Promoter Details

HP Adhesives Limited is a sealant and adhesive company. The adhesives produced by the company are used in multiple construction and drainage projects. The company has more than 750 distributors and 50K dealers in India. Its manufacturing plant is located at Raigad in Maharashtra. Its products are also exported in more than 21 countries.

IPO DETAILS

HP Adhesives Limited IPO is set to launch on 15th Dec., 2021. The subscription timeline extends till 17th Dec, 2021. The size for the IPO is 125.96 Crore Rs.. Shares issued through Fresh Issue are worth Rs. 113.44 Crore Rs. Shares issued through Offer for Sale are worth Rs. 12.53 Crore. The lot size is 50 shares and the price range is 262 Rs. – 274 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs. 10 and this is a book built issue. The registrar for the company is BigShare Services Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	15th Dec, 2021
CLOSING DATE FOR IPO	17th Dec, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	262 Rs. – 274 Rs.
LOT SIZE	50 shares
MINIMUM ORDER QUANTITY	50 shares
ISSUE SIZE	125.96 Crore Rs.
OFFER FOR SALE	12.53 Crore Rs.
FRESH ISSUE	113.44 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	27th Dec, 2021

IMPORTANT DATES

IPO OPENING DATE	15th Dec, 2021
CLOSING DATE FOR IPO	17th Dec, 2021
IPO ALLOTMENT DATE	22nd Dec, 2021
REFUNDS	23rd Dec, 2021
DEMAT A/C CREDITED ON	24th Dec, 2021
IPO LISTING DATE	27th Dec, 2021

HP Adhesives Limited IPO begins for subscription from 15th Dec, 2021. The IPO subscription would continue till 17th Dec, 2021. The allotment status for the shareholders who applied would come on 22nd Dec, 2021. The refunds for the ones who did not get allotment would be initiated on 23rd Dec, 2021. The DEMAT accounts of shareholders would be credited on 24th Dec, 2021. The listing of the company would be accompanied on 27th Dec, 2021.

Lead Managers And Promoters

The promoters of the company are Karan Haresh Motwani and Anjana Haresh Motwani.

The lead managers are :

Unistone Capital Private Limited

The minimum lot size for the company is decided at 50 shares. This holding accounts to 13700 Rs.. The maximum lot size is decided at 700 shares. This amounts to 191800 Rs.. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	50 shares	13700 Rs
Maximum	700 shares	191800 Rs

OBJECTIVES FOR THE IPO

The funds can be utilised for General corporate purposes.
Expansion of its Maharashtra Manufacturing plant.
Funding requirements of the company.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	898	568	567
REVENUE	1238	979	880
NET PROFIT	101	(47)	40

The Company does not outlay many outstanding numbers in its financial records. It has been very unstable in increasing its assets which can give the revenues a boost. The Assets have been stable for 2 years in a row and have increased drastically by almost 330 Crore Rs in the next year. The effect for the same is directly visible in the profit margins and revenue. The Revenue for the same year increased by 300 Crore Rs as well. However the revenues have grown even in 2020 where the assets were constant. Hence one can estimate that it is the outcome of high potential output from the company.

Reviewing the profits it is easily visible that the assets when increased net profit boosted by 150 Crore Rs from 2020. This portrays the company’s potential of earning well when flushed with liquidity. If the IPO money is utilised with right discretion it can create an impact on the company’s financial output.

PROS

The company’s products are exported to more than 20 countries.
It has 4 depot points in India.
The networking of the company is spread in India through 750 distributors and more than 50K dealers.

CONS

For Future Scope and higher Valuations the company needs to expand itself and increase the market capitalization. Its current capital and working funds are much lower than market cap of the business segment it is working into.