HP Adhesives shares will be listed on stock exchanges BSE and NSE on Monday. The Mumbai-based maker of adhesives and sealants commanded a premium in the grey market -- an unofficial market for unlisted securities -- prior to the listing on Dalal Street. Dealers said HP Adhesives' GMP or grey market premium stood at Rs 80 on Friday.

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HP Adhesives GMP

Source: IPO Watch

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Abhay Doshi, Co-Founder of Unlisted Arena, a portal that tracks grey markets and deals in unlisted securities, expects HP Adhesives shares to list at a premium of 20-25 percent over its issue price.

“As expected, HP Adhesive got heavily subscribed especially in the retail category due to its tiny issue size... On the valuation front, HP Adhesives seems to be expensive based on its performance in the first six months of FY22," he told CNBCTV18.com.

HP Adhesives' debut on BSE and NSE comes at a time when most IPOs have received a robust response from investors, though the recent sell-off has dented the appeal of few debutants.

HP Adhesives' IPO, which was a combination of fresh issuance and offer for sale (OFS) of shares, open for bidding from December 15 to December 17, saw an overall subscription of almost 21 times the shares on offer. The issue received bids for 5.3 crore equity shares as against the 25.3 lakh equity shares on offer.

The portion reserved for retail investors was subscribed 81.2 times, and that for non-institutional investors (NIIs) 19 times. The qualified institutional buyer (QIB) category saw a booking of 1.8 times.

HP Adhesives shares were available for bidding in a price band of Rs 262-274 under the IPO, in multiples of 50.

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Out of the overall HP Adhesives IPO, 75 percent was reserved for QIBs, 15 percent for NIIs and 10 percent for retail investors.

HP Adhesives aims to utilise the proceeds from the IPO to fund its working capital requirements, and capex for capacity expansion.

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First Published:Dec 27, 2021 8:22 AM IST