New Delhi: The Initial Public Offering (IPO) of HP Adhesives will hit the market for subscription on December 15 and will be closed on December 17.
The IPO of 45.97 lakh shares comprises a fresh issue of 41.40 lakh equity shares and OFS for sale of Rs 4.57 lakh equity shares by selling shareholder Anjana Haresh Motwani.
As per the red herring prospectus filed with the Registrar of companies, the offer will constitute 25.02 percent of the post-offer-paid equity share capital of the company.
The amount raised through the issue will be utilised for working capital requirements and expansion of production capacity at existing manufacturing facility.
In the case of financials, the company reported revenue of Rs123.88 crore for the financial year FY21, showing steady growth in revenue over the last 2 years.
The company earned Rs 10 crores made small profit, which comes from the net loss in the previous year. The impact of the pandemic on the topline was relatively limited.
The adhesives and sealants manufactured by HP Adhesives find applications in many industry groups including plumbing, sanitary works, water distribution, construction, glazing operations, etc. Apart from this, sealants and adhesives also find applications in footwear, automotive, foam furnishing etc.