Adhesive and sealants company HP Adhesives Limited is set to launch its initial public offering (IPO) on December 15, 2021. The company has fixed a price of Rs 262-274 per equity share, at a face value of Rs 10 each. The three-day issue will close on Friday, December 17, 2021.

The company plans to raise up to Rs 126 crore from the primary market. The maiden issue comprises an initial public offer of 45,97,200 equity shares which includes a fresh issue of 41,40,000 equity shares worth Rs 113.44 crore and an offer for sale (OFS) of 4,57,200 equity shares by shareholder Anjana Haresh Motwani aggregating up to Rs 12.53 crore. Of the net issue, 75 per cent is reserved for qualified institutional buyers, 15 per cent for non-institutional bidders, and 10 per cent for retail investors.

HP Adhesives will use the net proceeds from the fresh issue for funding the working capital requirements of the company and funding capital expenditure for expansion of production capacity at the existing manufacturing facility at Village Narangi, Raigad, Maharashtra and at the additional unit having a proposed construction area admeasuring about 4,532.57 sq. mtrs. (built-up) area on the adjacent plot.  The proceeds will also be used for general corporate purposes.

Unistone Capital Private Limited has been appointed as the book running lead manager of the issue and Bigshare Services Private Limited is the registrar for it.