HP Adhesives Limited IPO
(i) The Company’s largest product category – PVC solvent cement, they are amongst the leading manufacturing companies in India in the consumer/ bazaar segment of the adhesive industry.
(ii) They manufacture a wide range of consumer adhesives and sealants such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, other sealants and PVC pipe lubricant which are sold across India, through an extensive distribution network of distributors, and exported also to several countries, through network of distributors and direct customers.
(iii) They also manufacture these products for select large PVC pipe manufacturing companies under co-branding or private label on order basis. Apart from the above products, they also sell ancillary products like ball valves, thread seal and other tapes and FRP products for drainage and architectural solutions that are distributed along with its products to the end customers through the distribution network.
(iv) The aforesaid adhesives and sealant products have applications in multiple industries such as plumbing and sanitary, drainage and water distribution, general purpose building/ construction and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing and other varied industries.
(v) As of September 30, 2021, the distribution network comprised 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.
a. Consistently growing company with established brand presence
b. Wide Product Portfolio and multiple SKUs
c. Focusing on multiple end-user industries
Objects of the HP Adhesives Limited IPO:
HP Adhesives Limited IPO Details:
|Open Date:||Dec 15 2021|
|Close Date:||Dec 17 2021|
|Face Value:||₹ 10 Per Equity Share|
|Issue Type:||Book Built|
|Issue Size:||125.96 Cr.|
|Lot Size:||50 Shares|
|Issue Price:||₹ 262 - 274 Per Equity Share|
|Listing Date:||Dec 27 2021|
Promoters And Management:
Financials of HP Adhesives Limited IPO:
|Particulars (in Lakh)||March-21||March-20|
|Cost of materials consumed||9,708||5,224|
|Increase in inventories||-1,586||182|
|Employee benefits expense||1,473||1,114|
|Profit Before tax||1,323||-541|
|Profit After Tax||1,006||-472|
Comparison With Peers:
Recommendation on HP Adhesives Limited IPO:
Lead Manager of HP Adhesives Limited IPO:
Registrar of HP Adhesives Limited IPO:
Discussion on HP Adhesives Limited IPO:
All IPOs are coming at P/E of more than 50…. In the long run very few companies in the past withstand 50 P/E… So, every investor should be very careful in these IPOs. Only apply for listing gain, irrespective of the pedigree of the companies.
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