HP Adhesives IPO was subscribed 8.03 times on the 2nd day of its issueHP Adhesives Limited's preliminary public deal (IPO) was subscribed 8.03 times on the 2nd day of its problem, according to membership information on the stock exchanges.
The IPO of the adhesives and sealants company opened on December 15, and will close on Friday, December 17 - remaining open for investors for a period of 3 days.
On Thursday, the part scheduled for retail individual investors was subscribed 40.29 times - the highest among the 3 groups of financiers.
The part set aside for non-institutional financiers was subscribed 1.90 times, while the part booked for qualified institutional buyers or QIB was subscribed 0.34 times today.Out of the net concern, 75 percent is booked for qualified institutional purchasers, 15 per cent for non-institutional bidders, and 10 per cent for retail investors.
The business is offering up to 45,97,200 equity shares in the cost band of Rs 262-274 per equity share.HP Adhesives Minimal produces a vast array 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 lubricants.These adhesives and items have applications in multiple industries such as plumbing and sanitary, drainage and water circulation, woodwork, footwear, automobile, foam-furnishing, among others.
At the greater end of the rate band, HP Adhesives IPO is priced at a PE ratio of ~ 50 times FY21 EPS (on a fully diluted basis).
This is lower than noted peer Pidilite Industries (90 times).
However, given much better brand name recall and management status, Pidilite is anticipated to command a greater assessment.
Provided the business's strong item profile, healthy increase in topline, strong market share, enhancing financial profile, and strong runway for development, we remain Favorable on the long-term potential customers of the problem, SEBI-registered investment consultant INDmoney said in a report.