scorecard
  1. Home
  2. stock market
  3. news
  4. HP Adhesives lists at 16% premium and investors gain ₹45 per share at opening

HP Adhesives lists at 16% premium and investors gain ₹45 per share at opening

HP Adhesives lists at 16% premium and investors gain ₹45 per share at opening
Stock Market1 min read
  • Shares of HP Adhesives listed at ₹319 while the shares were allotted at ₹274 per share.
  • The IPO had received good demand from investors as it was subscribed 20.96 times on the last day of the bidding.
  • The market capitalisation of the company stood at ₹586 crore.
Shares of Mumbai-based adhesives and sealants manufacturer HP Adhesives made a positive listing on the exchanges at 16.42% premium over the issue price of ₹274 apiece.

The listing gains of ₹45 per share was below the indications of the grey market premium which stood at ₹80 per share.

Post-listing, the market capitalisation of the company stood at ₹586 crore, according to BSE data.

The company raised ₹126 crore through the public issue wherein fresh issue was of ₹113 crore and offer for sale of ₹12.53 crore.

The shares of HP Adhesives were trading at ₹334, higher by 22% at 10.01 a.m., on December 27.

The IPO was open between December 15 and December 17 ⁠and was oversubscribed 20.96 times by investors.

HP Adhesives manufactures a wide range of products such as solvent cements, silicone sealants, contact adhesives, white glue, plumbing accessories and manhole covers.

The proceeds from the IPO will be used for working capital and capital expenditure at its manufacturing facility in Narangi, Maharashtra and at the additional unit.

As of September 30, 2021, the company has a distribution network of 4 depots situated in Delhi, Kolkata, Bengaluru, and Indore and more than 750 distributors who cater to more than 50,000 dealers in India. In FY21, the company sold its products in 21 countries.

The company has delivered a profit of ₹10 crore after incurring a loss of nearly ₹5 crore last year.

SEE ALSO: RBL Bank slumps 15% after CEO goes on leave ⁠— big investors are eyeing a piece of the pie
RBL Bank, Zee Entertainment, HP Adhesives, and Adani Transmission among hot stocks on December 27

READ MORE ARTICLES ON


Advertisement

Advertisement