HP Adhesives IPO Review: Date, Price, GMP.

HP Adhesives IPO
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HP Adhesives Limited is a company engaged in producing adhesives and sealants. The company’s product portfolio includes consumer sealants and adhesives such as different types of PVC, PVA, solvent cement, synthetic rubber, acrylic and silicone adhesive and sealants. The company also produces gasket shellac, PVC pipe lubricants. 

HP Adhesives visa its product portfolio is engaged in many industries. The company is also engaged in the woodwork, glazing operations, automotive and footwear industry. It also manufactures industrial ancillaries such as ball valves, FRP products and thread seals. The company currently has four major centers in the country. These centers are in Delhi, Kolkata, Indore and Bengaluru. HP Adhesives also has a vast distribution network of 750 distributors and 50,000 dealers. The company also has an international presence, with its product line being sold in 21 different countries. The company has one Multi- Speciality Manufacturing unit in Raigad, Maharashtra. It has a manufacturing capacity of 15400 metric tons.

The company’s primary revenue stream is that from:

PVC, cPVC and uPVC70.44%
Silicone sealants7.99%
PVA adhesives and synthetic rubber adhesives5.33%

HP Adhesives have a Rs 13500-14000 crore market as per the data in FY2020. The company has divided their business verticals into two major categories, which includes:

  • Industrial Adhesives: B2B Industry driven business
  • consumer and bazaar adhesives. 


  • Prepayment of all the company’s loans, which be availed on a consolidated basis. 
  • To meet corporate targets. 
  • To fund the working capital requirement.  


  • HP Adhesives has a diversified product portfolio line, multiple SKUs with a widespread presence with many clients across various industries.
  • The company has an experienced promoter base and competent management that has a great understanding of the market and business opportunities for the company.
  • The company has a strong presence in the consumer market sector and a growing international presence. It has helped the company to increase its brand awareness over the years.
  • HP Adhesives have a substantial Sales and distribution chain.
  • The company’s manufacturing and production facility are located to attain a strategic and locational advantage for its operation and financial performance.
  • The company focuses on enhancing its operational effectiveness and expansion plan and setting up an R&D unit to improve its product quality and develop a new product line.


HP Adhesives, the company, was first a private firm which later became a public company, shifted its headquarters in Mumbai. Recently the company got approval from SEBI to float their IPO in the market. The company submitted their DRHP to the SEBI earlier these years. As per the DRHP, the company will float an IPO that is a combination of an OFS of 4,57,200 equity shares from selling stakeholders and an issue of fresh equity worth 41,40,000 Equity shares.  

HP Adhesive’s IPO offer comprises 25.02 percent of POPES, also known as the post-offer paid-up equity share of the company. The company also stated that the funds raised through the issue of the fresh equity would be used for the company’s working capital requirements and the project of expansion in the production capacity. The company also stated that it would buy some new machinery for their Raigad plant with the issue of fresh equity. 

IPO Opening Date15 December 2021
IPO Closing Date17 December 2021
Issue TypeBook Building Type
Face ValueRs. 10 per Equity Share
IPO PriceRs. 262 – Rs. 274 per equity share
Market Lot1 lot of 50 Shares
Minimum Order Quantity50 Shares = 1 lot
Maximum Order Quantity700 Shares = 14 lots
Minimum Order PriceRs. 13,700
Maximum Order PriceRs. 191,800
Listing AtBSE, NSE
Issue Size45,97,200 Equity Shares
Fresh Issue41,40,000 Equity Shares
Offer for Sale4,57,200 Equity Shares
Basis of Allotment Date22 December 2021
Initiation of Refunds23 December 2021
The Credit of Shares to Demat Account24 December 2021
IPO Listing Date27 December 2021
Basis of Allotment Type% Of the Allotment of the IPO Offer
Qualified Institutional Buyer75
Non-Institutional Investor15


   Earnings Per Share (Rs)7.74-3.64312.75
   Book NAV/Share (Rs)9.741.91409.56
   Tax Rate (%)23.9612.7388.19
   Core EBITDA Margin (%)10.134.96104.33
   EBIT Margin (%)13.36-3.34499.85
   Pre-Tax Margin (%)11.20-6.41274.64
   PAT Margin (%)8.51-5.60252.16
   Cash Profit Margin (%)10.12-3.35402.10
   ROA (%)14.12-8.69262.45
   ROE (%)132.86-190.34169.80
   ROCE (%)34.09-7.53552.65
   Asset Turnover(x)1.661.556.76
   Sales/Fixed Asset(x)4.884.4310.13
   Working Capital/Sales(x)-21.62-8.08-167.59
   Fixed Capital/Sales(x)0.210.23-9.20
   Receivable days65.9085.51-22.94
   Inventory Days78.6479.99-1.68
   Payable days62.6875.85-17.35
   EV/Net Sales(x)0.460.56-17.31
   EV/Core EBITDA(x)3.097.26-57.45
   Net Sales Growth (%)39.820.000.00
   Core EBITDA Growth (%)171.680.000.00
   EBIT Growth (%)659.060.000.00
   PAT Growth (%)312.750.000.00
   EPS Growth (%)312.750.000.00
   Total Debt/Equity(x)3.3514.09-76.20
   Current Ratio(x)0.920.8015.12
   Quick Ratio(x)0.440.44-0.83
   Interest Cover(x)6.18-1.09668.30
ParticularsFor the year with amount ending in Crore
Total Assets89.7856.81
Total Revenue123.8886.83
Profit After Tax10.06– 4.73


  • The company registered an improvement in their scale of operations in the first half of the FY21 in post COVID Era.
  • HP Adhesives’ major strength lies in its promoter and management team. The company’s promoters have experience of 30 years in the adhesive industry.
  • The diversified product portfolio, multiple SKU’s and presence in multiple industries through their business product line. HP Adhesives currently has a firm undertone and strong operational and financial performance on both Top-line and Bottom-line front.
  • HP Adhesives is the biggest and the most prominent company engaged in solvent cement, gasket shellac, PVC pipe lubricants in Asia.
  • The company also enjoys the benefit of its Pan India distribution network, which incorporates 750 distributors, 50,000 dealers, 74 OEM clients, and 26746 retail stores.
  • HP Adhesives will benefit from the growth in the adhesive sector. The estimated growth is 8-9% CAGR within FY25. 
  • The company has improved significantly on the financial parameters with higher net margins, better operational margins, high profitability ratio, strong liquidity and improved debt metrics. HP Adhesives also registered a total operating income of Rs. Two hundred fifty crores, where the tangible net worth base of the company increased to Rs.75 crore before filling up for the IPO. 
  • The PAT and PBILDT margins of the company also improved by 10% and 17% due to higher production and an increase in the demand for their product line in the market.
  • HPAL’s presence is more robust in the western region as it derived almost half of its entire domestic revenue from this region in FY21
  • The company’s short-term focus is to expand its manufacturing and distribution network. The company benefits a lot from its strategic manufacturing facility near JNPT port which allows them to get raw material on time.


  • HP Adhesives has a very modest scale of operations considering the amount of market the company owns, its net-worth and other parameters. It is also due to the underutilization of their manufacturing plant, which has negatively impacted the company. 
  • The company is vulnerable to volatility in the availability, pricing and supply-demand of the raw materials required for their finished product. 
  • HP Adhesives also face an additional threat in their raw material by the price of crude oil and petrochemical intermediates. Its raw materials are derived from these substances only. It can significantly impact their profitability, margins, and other ratios.
  • The company is engaged in a highly competitive environment where it faces competition from many organized and fragmented peers. 
  • The company needs to comply with the strict industrial, environmental and quality control guidelines required in the sector. 
  • HP’s Adhesive manufacturing operation is a highly working capital-intensive business.
  • The company relies heavily on the western region of India as around 80% of its revenue is from the domestic western region of the country.
  • The company also has a challenge with their ongoing expansion project.
  • HP Adhesives, the company, and promoters are currently facing a trial under legal procedure. Any negative news on this front will hurt the company’s brand image.
  • The COVID-19 leading to lockdown and disruption in the supply chain operation has led to financial and operational inefficiency in the company. 
  • The company holds some disclosed contingent liabilities that have led to a negative impact on the company.


  • Mrs. Anjana Haresh Motwani
  • Mr. Karan Haresh Motwani
Pre-Issue Share Holding95.31%
Post Issue Share Holding


HP Adhesives Limited
11/ Unique House – Chakala Cross Road, Andheri East,
Mumbai – 400 099, Maharashtra, India,
Telephone: +91 22 68196300
E-mail: investors@hpadhesives.com
Website: www.hpadhesives.com


BIGSHARE Services Private Limited
1st floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road,
Marol, Andheri (East),
Mumbai- 400 059, Maharashtra, India.
Telephone: +91 22 6263 8200
Facsimile: +91 22 6263 8299
E-mail: ipo@bigshareonline.com
Website: www.bigshareonline.com


  • Unistone Capital Private Limited


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