New Delhi: Shares of HP Adhesives made a decent debut at the exchanges on Monday. The consumer adhesives and sealants company’s stock got listed at Rs 319 on BSE, a premium of 16.42 per cent over its issue price of Rs 274. On NSE, the scrip started trading at Rs 315.
As of 12:32 pm, the shares were trading at day’s high of Rs 330.75.
The three-day initial public offering (IPO) of the company, which had opened for subscription between December 15 and December 17, was booked 20.96 times.
The IPO consisted of a fresh offer of 4.14 million shares for Rs 113.4 crore and an offer for sale of about 4.57 lakh shares by shareholder Anjana Haresh Motwani aggregating up to Rs 12.5 crore.
Of the net issue, 75 per cent was reserved for qualified institutional buyers, 15 per cent for non-institutional bidders, and 10 per cent for retail investors.
The company said it will use the proceeds from the issue for working capital requirements and capacity expansion at its manufacturing facility at Narangi village of Raigad district in Maharashtra and an additional unit on an adjacent plot.
It will also expand installed capacities at existing product lines and add products to its portfolio.
HP Adhesives is one of the leading manufacturers in the consumer segment of the adhesive industry for its largest product category – PVC solvent cement – in India.