HP Adhesives
Mainboard₹126 Cr issue
+16.42%
Listing gain over issue price
Issue size
₹126 Cr
1 lot at cut-off
₹13,700
Lot size
50shares
Open
15 Dec 2021
Close
17 Dec 2021
Allotment
22 Dec 2021
Listing
27 Dec 2021
Listing performance
Issue price
₹274
Listed at
₹319
Listing-day close
₹334.95
Latest price
₹29.93
Close on 23 Oct 2026
Listing gain
+16.42%
Return since issue
-45.38%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Dec 2021 – 17 Dec 2021
- Listing date
- 27 Dec 2021
- Face value
- ₹10 per share
- Issue price
- ₹274 per share
- Lot size
- 50 shares
- Total issue size
- ₹126 Cr
- Market cap at offer price
- ₹503 Cr
- Promoter holding
- 95.00% → 71.00% pre-issue → post-issue
- ISIN
- INE0GSL01024
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- 11, Unique House, Chakala Cross Road, Andheri East, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 20,68,700 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 50 shares per lot, in multiples, at ₹274
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 50 | ₹13,700 |
| Retail (max) | 14 | 700 | ₹1,91,800 |
| S-HNI (min) | 15 | 750 | ₹2,05,500 |
| S-HNI (max) | 72 | 3,600 | ₹9,86,400 |
| B-HNI (min) | 73 | 3,650 | ₹10,00,100 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
20,68,700
Anchor portion
₹56.68 Cr
at ₹274 per share
Valuation and performance
Valuation at offer price
₹274 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| Market cap | — | ₹503 Cr |
About HP Adhesives
HP Adhesives Limited, originally formed as M/s. H.P. International partnership on January 1, 1987, was converted to a private limited company on May 7, 2019, and subsequently to a public limited company on July 1, 2021. The company manufactures a wide range of consumer adhesives and sealants products including PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, and PVC pipe lubricant. Products are sold across India through an extensive distribution network of distributors and exported to several countries. The company also manufactures products for select third-parties on an order basis and provides ancillary products like ball valves, thread seal tapes, and FRP products for drainage and architectural solutions.
Company Analysis
from RHPHP Adhesives Limited is a multi-product, multi-category consumer adhesives and sealants manufacturer selling PVC/cPVC/uPVC solvent cement, synthetic rubber adhesives, PVA adhesives, silicone and acrylic sealants across India through a distributor network.
HP Adhesives Limited, originally formed as M/s. H.P. International partnership on January 1, 1987, was converted to a private limited company on May 7, 2019, and subsequently to a public limited company on July 1, 2021. The company manufactures a wide range of consumer adhesives and sealants products including PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, gasket shellac, and PVC pipe lubricant. Products are sold across India through an extensive distribution network of distributors and exported to several countries. The company also manufactures products for select third-parties on an order basis and provides ancillary products like ball valves, thread seal tapes, and FRP products for drainage and architectural solutions.
consumer adhesives and sealantsbuilding constructionfurniture/woodworkarts and craftelectrical fittingsPVC pipes industrypackagingfootwearpaintsautomotive
Objects of the Issue
- Funding capital expenditure for existing and proposed expansion ₹ 2,550.86 Lakhs p.23
- Funding the incremental working capital requirement of our Company ₹ 5,400.00 Lakhs p.23
- General corporate purpose ₹ 1,723.50 Lakhs p.23
- Funding capital expenditure for the Proposed Expansion of production capacity at existing manufacturing facility and adjacent plot ₹2,550.86 Lakhs p.97
- Funding the incremental working capital requirements of the Company ₹5,400.00 Lakhs p.97
- General corporate purposes ₹1,723.50 Lakhs p.97
- Funding capital expenditure for the proposed expansion of manufacturing facility at Village Narangi, Raigad, Maharashtra including machinery and equipment for increased production capacity p.153
- General corporate purposes p.153
Issue Structure
- Total Issue
- Up to ₹ 12,596.33 Lakhs
- Fresh Issue
- Up to ₹ 11,343.60 Lakhs (41,40,000 Equity Shares)
- Offer for Sale
- Up to ₹ 1,252.73 Lakhs (4,57,200 Equity Shares by Anjana Haresh Motwani)
- Price Band
- ₹ 262/- per Equity Share (Floor Price) to ₹ 274/- per Equity Share (Cap Price)
- Lot Size
- 50 Equity Shares and in multiples of 50 Equity Shares thereafter
- Face Value
- ₹ 10 each
Business Model
The company operates a B2C distribution model, selling consumer adhesives and sealants through a network of distributors who further distribute to end-customers. Products are manufactured at a facility in Village Narangi, Raigad, Maharashtra. The company also manufactures products for third parties on order basis and distributes ancillary products alongside its core adhesive and sealant offerings.
Business Segments
Adhesives used for joining PVC pipes; consists of PVC resin, solvent, and methyl ethyl ketone which breaks the top layer of pipes and fittings to be joined together
Synthetic rubber adhesives, PVA adhesives, and other adhesive products
Silicone sealant, acrylic sealant, gasket shellac, and other sealants
Ball valves, thread seal and other tapes and FRP products for drainage and architectural solutions
Manufactures PVC, cPVC and uPVC Solvent Cement products for pipe joining and construction applications
Produces synthetic rubber adhesive products
Manufactures polyvinyl alcohol adhesives
Produces silicone sealant products for sealing applications
Manufactures gasket shellac products
Produces lubricants for PVC pipe manufacturing
Solvent cement used for joining PVC, cPVC and uPVC pipes in irrigation, sewage, drainage, and electrical piping systems, as well as hot and cold plumbing applications
Contact adhesive providing high initial tack for bonding to different surfaces, used in furniture, footwear, handicrafts, automotive, foams, mattresses, non-woven and thermal insulation applications
Wood glue or carpenter's glue for porous materials like wood, paper, cardboard and crafts used in woodworking and general purposes
Liquid adhesive sealants resistant to high temperatures, chemicals, moisture and weathering used in automobiles, electronics, solar panels, doors, windows, glazing, bathroom and sanitary applications
Lubricant used for simple, quick, watertight joints in drainage pipes
The Company operates primarily in adhesives & sealants segment and manufactures 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
SWOT Analysis
Strengths
- • Multi-product, multi-category consumer adhesives and sealants company with wide distribution network(p.23)
- • Experienced promoters with domain knowledge in adhesives industry(p.125)
- • Wide product portfolio addressing diverse customer needs(p.125)
- • Extensive sales and distribution network(p.125)
- • Strategically located manufacturing facilities(p.125)
- • Improving operational efficiency(p.125)
- • Consistently growing company with established brand presence and multi-product portfolio(p.154)
- • Wide product portfolio with multiple SKUs across diverse end-use industries(p.154)
- • Extensive distribution network across India with no single distributor dependency(p.155)
- • Established presence in international markets with NSF certification(p.155)
- • Strategic manufacturing location with scope for expansion(p.156)
- • Rigorous quality control processes and ISO certifications(p.169)
- • Experienced management team with deep industry expertise(p.156)
- • Market leadership in PVC solvent cement category(p.153)
- • Focused operations in single adhesive & sealant segment with established distribution(p.266)
- • Strong revenue growth trajectory across multiple financial periods(p.284)
- • Diverse product portfolio with recently successful new categories(p.284)
- • Expansion of distribution network and sales force capabilities(p.284)
Weaknesses
- • Dependent on external suppliers for all raw materials with no long-term contracts(p.36)
- • Significant borrowings with restrictive covenants from commercial banks(p.37)
- • Past incurrence of losses and negative cash flows from operations(p.39)
- • No long-term arrangements with distributors creating sales uncertainty(p.35)
- • High attrition rates among manufacturing facility employees(p.54)
- • Trademark registration issues with company logo and brands not fully registered(p.47)
- • Promoters retain majority shareholding creating conflict of interest risk(p.56)
- • Related party transactions with potential conflict of interest(p.58)
- • No formal data security policy despite IT system dependence(p.56)
- • Historical losses and no dividend payment track record(p.57)
- • Promoters as executive directors with dual interest creating governance risk(p.59)
- • High raw material cost dependency reducing profitability flexibility(p.165)
- • Significant reliance on imported raw materials creating currency exposure(p.165)
- • Manufacturing facility capacity utilization below optimal levels in key products(p.164)
- • Dependence on leave and license arrangements for key facilities without long-term ownership(p.156)
- • Modest brand investment and limited formal brand promotion policy(p.157)
- • Volatility in profitability with significant loss in FY2020(p.154)
- • High financial leverage and borrowing obligations(p.289)
- • Significant interest rate and currency exposure risk(p.269)
- • Credit risk exposure from trade receivables with aging issues(p.271)
- • Working capital intensive operations requiring substantial borrowing(p.294)
- • Contingent liabilities from pending tax disputes and litigation(p.290)
Opportunities
- • Expansion of manufacturing capacity to support growth(p.32)
- • Deepening presence in rural and semi-urban regions for market expansion(p.47)
- • Growing domestic adhesives and sealants market across multiple segments(p.23)
- • Strong growth trajectory expected in Indian adhesives industry(p.102)
- • Expansion of manufacturing capacity to serve growing demand(p.103)
- • Addition of new products to existing portfolio through expansion(p.97)
- • Expected recovery in adhesives industry post-pandemic(p.102)
- • Listing providing access to capital and enhanced corporate image(p.99)
- • Rapidly growing consumer adhesives market projected to expand 9-10% CAGR through FY26(p.142)
- • Strong growth in wooden furniture market driving adhesive demand at 10-12% CAGR(p.144)
- • Electronics industry adhesive demand growing at 19-24% CAGR(p.145)
- • PVC adhesives market projected to grow 9-11% CAGR through FY26 driven by plastic pipes(p.151)
- • Expanding construction and infrastructure investments creating adhesive demand opportunities(p.145)
- • Low per-capita PVC consumption in India compared to global average(p.148)
- • Rising demand for green and sustainable bio-based adhesives(p.145)
- • Growth strategy to introduce new product categories and expand distribution network(p.157)
- • Market expansion through enhanced distribution network(p.284)
- • Capacity expansion through new manufacturing facility construction(p.284)
- • Growth in adhesive and sealant market through industry tailwinds(p.278)
- • Product portfolio diversification with recently introduced categories showing acceptance(p.286)
Threats
- • Continuing impact of COVID-19 pandemic on operations and demand(p.32)
- • Highly competitive market dominated by larger player with significant barriers to entry(p.44)
- • Raw material price volatility linked to crude oil and petrochemical prices(p.38)
- • Regulatory and environmental compliance requirements including pollution control laws(p.49)
- • Dependency on power supply for manufacturing operations(p.49)
- • Reliance on third-party transportation providers for supply chain(p.46)
- • High dependence on Indian economy slowdown risks(p.61)
- • Global financial instability and emerging market volatility(p.59)
- • Exposure to foreign exchange fluctuations(p.59)
- • Inflation risks affecting margins(p.61)
- • Technology obsolescence risk requiring capital investment(p.57)
- • Geopolitical tensions affecting supply chain(p.64)
- • Risk of natural and pandemic-related disruptions(p.59)
- • Intense competition from dominant market player Pidilite commanding 60-65% market share(p.146)
- • Economic slowdown and pandemic impact on adhesive market demand(p.140)
- • Dependence on construction and irrigation sectors vulnerable to government policy changes(p.149)
- • Raw material price volatility and exposure to crude oil price fluctuations(p.165)
- • Forex and currency volatility impacting export competitiveness(p.136)
- • Capacity expansion plans subject to implementation risks and cost overruns(p.165)
- • Regulatory and environmental compliance risks for chemical manufacturing(p.174)
- • Impact of inflation on operating costs and margins(p.291)
- • Raw material price volatility affecting cost structure(p.282)
- • Ongoing tax litigation disputes and regulatory uncertainties(p.281)
- • Economic sensitivity and potential cyclicality in business(p.292)
- • Foreign exchange volatility impact on operations(p.270)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Anjana Haresh Motwani | Promoter | 50.47% | — |
| Karan Haresh Motwani | Promoter | 44.84% | — |
| Anjana Haresh Motwani | Promoter | 50.56% | 36.68% |
| Karan Haresh Motwani | Promoter | 44.75% | 34.67% |
| Anjana Haresh Motwani | Promoter/Executive Director & Chairperson | 50.56% | — |
| Karan Haresh Motwani | Promoter/Managing Director | 44.75% | — |
| Mrs. Anjana Haresh Motwani | Promoter | 50.56% | — |
| Mr. Karan Haresh Motwani | Promoter | 44.75% | — |
| Anjana Haresh Motwani | Promoter | — | — |
| Karan Haresh Motwani | Promoter | — | — |
| Anjana Haresh Motwani | Selling Shareholder | — | — |
Leadership
Anjana Haresh Motwani · Chairperson
Karan Haresh Motwani · Managing Director
Jyoti Nikunj Chawda · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
HP Adhesives IPO FAQs
What is the lot size of HP Adhesives IPO?
The minimum lot size of HP Adhesives IPO is 50 shares. One lot costs ₹13,700 at the cut-off price.
When does HP Adhesives IPO open and close?
HP Adhesives IPO opened for subscription on 15 Dec 2021 and closed on 17 Dec 2021.
What is the listing date of HP Adhesives IPO?
HP Adhesives IPO listed on 27 Dec 2021.