HP Adhesives Limited
Credit of Shares to Demat
Cut off time for UPI Mandate Confirmation
Minimum Order Quantity
Consumer adhesives and sealants player HP Adhesives is coming up with its Rs.126 crore public offering consisting of a fresh offer of 4.14 million shares for Rs.113.4 crore and an offer for sale of about 457,000 shares by shareholder AnjanaHareshMotwani aggregating up to Rs.12.5 crore. Of the net issue, 75% is reserved for qualified institutional buyers, 15 percent for non-institutional bidders, and 10 percent for retail investors.
Objects of the Offer:
As the 90% of the issue consists of fresh issue the company is planning to use the fresh proceeds for its 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. The company will also expand installed capacities at existing product lines and add new products to its portfolio.
About the Company:
HP Adhesives Ltd is a consumer adhesives and sealants company popularly known for its consumer adhesives and sealants such as PVC, cPVC, and uPVC solvent cement and other types of sealants and PVC pipe lubricants which are sold across India as well as exported to several other countries. It also sells ancillary products like ball valves, thread seal and other tapes and FRP (fiber-reinforced plastic) products for drainage and architectural solutions that are distributed along with its products to the end customers through distribution network.
These adhesives and sealants are used in industries such as plumbing and sanitary, drainage and water distribution, general purpose building/construction and interior operations as well as for glazing operations, woodwork, footwear, automotive, foam-furnishing and other industries.
Pidilite is the market leader in consumer adhesives and sealants in India with an overall market share of 65 percent. HP Adhesives has a market share of about 14-16 percent in solvents used in plastic pipes and fittings.
· Focusing on multiple end-user industries
· Established presence in International markets
· Established brand presence
· Wide Product Portfolio & SKUs
· Extensive distribution network across India
· The Indian adhesives and sealants industry has historically been dominated by few major players and presents significant entry barriers. The company competes with other players on the strength of its distribution network, quality, brand recognition and ability to leverage distributor relationships to connect with the end use appliers.
· Crude oil and other petrochemical intermediates impact the company’s raw material prices. Any volatility in crude oil prices has an adverse impact on input costs.
· The company does not have long-term agreements with raw material suppliers.
· A significant portion of HP Adhesive’s sales are skewed towards ‘West’ zone any materially adverse changes in the west markets can impact the company’s bottom-line.
In the overall consumer adhesives market, HP Adhesives
is pre-dominantly present in PVC adhesives market as 77% of its sales are
coming from PVC adhesive related products. Considering the size of the overall
consumer adhesives market i.e, Rs.50-55 bn, PVC adhesives market is
comparatively significantly smaller and fragmented i.e, Rs.6.5 bn. Further, the
company faces intense competition from not only Pidilite but also from other
unorganized players. Bearing in mind factors like low capacity utilization (51%
as of FY21), volatile debt position, high geographical concentration, high
suppliers as well as customers bargaining power and the fact that currently
there are better IPO investment opportunities available, we recommend investors
to ‘AVOID’ this IPO.
Yes, you can always trade an IPO through a discount broker. Buying & selling an IPO becomes very easy once the trading and the demat account are set up appropriately.
Following are the benefits in buying and selling an IPOs through a discount broker. Reduced Brokerage Fee: Discount brokers charge a flat brokerage which is missing in case of full service brokers. Full service brokers usually charge %age brokerage and this incurs a lot of cost to an investors. So if any full service broker charge a brokerage of let say 0.03% then on a purchase of shares of worth of Rs 200,000 you end up paying Rs 600+ Taxes. In our case we charge a flat brokerage of Rs 20 + Taxes. Discount brokers therefore saves a lot of money of investors. Better Trading Platform: Usually discounts brokers don’t provide a good trading platform and experience but there are few discounts brokers like Samco, who are now focussing on delivering a world class trading platform and top notch user experience. Therefore narrowing down the gap between discount brokers and full service brokers.
Technically Speaking, SEBI has made mandatory to buy an IPO through ASBA channel but there is no regulation on how any investor can sell an IPO allotted shares. Therefore, smart investors can always sell IPO allotted shares through a discount broker
This is very easy, you need to do the following to buy and sell IPOs hasslefree with a discount broker. Open a trading & demat account with a discount broker. Open a trading account with a full service broker like banks which are offer IPO buying through ASBA route. While filling up the information for the demat account while opening an account with a bank, you need to give the details of demat account which is with the discount broker. Once your demat account is linked with the trading account of the bank then you simply buy and sell IPO. Investors need to understand that almost all brokers don’t charge any annual fee for trading account therefore having multiple trading accounts linked to a single demat account won’t incur any cost to investors. ,
You need to submit the following documents for opening an account with Samco : Photograph PAN Card Bank Details – Cancelled cheque or Bank Statement/Passbook copy Aadhar Card (or alternative address proof such as Drivers license, Voter ID, etc) Proof of Income (6 months bank statement or ITR Return or 3 months salary slip)