HP Adhesives, a household sealants company with a wide range of goods and categories, will launch its initial public offering on December 15, and it will run through December 17, 2021.
The proceeds from the new offering will be utilized to cover working capital requirements and expand production capacity at the company’s existing manufacturing site in Maharashtra, as well as a neighbouring facility. The company will also use fresh issue money to increase installed capacity for existing product lines and add new goods to its existing product portfolio.
HP Adhesives is a big consumer/market adhesives manufacturer in India, with PVC solvent cement being its most popular product category.
Tentative Schedule of HP Adhesives IPO
|IPO Open Date||Dec 15, 2021|
|IPO Close Date||Dec 17, 2021|
|IPO Listing Date||Dec 27, 2021|
The company also produces goods for a few major PVC pipe manufacturers under co-branding or private label on a case-by-case basis. Plumbing and sanitary, drainage and water distribution, general purpose building/construction and interior operations, as well as glazing, woodwork, footwear, automotive, foam-furnishing, and other diversified industries, use its adhesives and sealants.
HP Adhesives made a profit of Rs 10.06 crore in fiscal year FY21, up from a loss of Rs 4.67 crore the previous year, while revenue increased to Rs 118.16 crore from Rs 95.47 crore.
The profit for the six months ending September 2021 grew to Rs 3.1 crore, up from Rs 2.93 crore the year before. Over the same year, revenue climbed to Rs 70.51 crore from Rs 44.92 crore. Unistone Capital is the book running lead manager for the offer, while Bigshare Services is the registrar.
Company Overview of HP Adhesives IPO
HP Adhesives Limited is a sealant and adhesives manufacturer. The company’s products include PVC, cPVC, and uPVC solvent cementing, rubber products adhesive, PVA adhesives, silicone adhesive, acrylics sealant, gasket shellac, different sealants, and PVC pipe lubricants. These adhesives and sealing solutions are used in irrigation and sanitation, drainage and water transfer, overall construction, and indoor processes, as well as optical processes, woodworking, garment, vehicle, foam-furnishing, and other diverse industries.
- Funding the company’s working capital requirements.
- Funding capital expenditures for the expansion of production capacity at an existing manufacturing plant in Maharashtra, as well as a new unit with a proposed construction size of around 4,530 square meters.
Competitive Strengths of HP Adhesives IPO
- A vast product selection and a big number of SKUs
- A broad consumer base necessitates a diverse product lineup.
- They have a big distribution network in India.
- The company has a well-established international presence.
- A manufacturing arrangement that is both effective and scalable.
- To ensure continual product improvement and new product development, quality R&D is prioritized.
- A seasoned management team and a dedicated crew