The share reserved for retail investors is subscribed 56.12 times while the share reserved for HNIs is subscribed 6.72 times. The portion reserved for Institutional Bidders is 100% subscribed.
The IPO of HP Adhesives has received a very good response from the investors. This IPO has been subscribed 12.58 times on the last day. Under the IPO, 25,28,500 shares are to be allotted but for this only 3,18,14,450 applications have come. The share reserved for retail investors is subscribed 56.12 times while the share reserved for HNIs is subscribed 6.72 times. The portion reserved for Institutional Bidders is 100% subscribed. 113.44 crore new shares will be issued under the issue. The price band is Rs 262-274. Investors could bid in lots and multiples of 50 shares. Let us see what is the opinion of brokerage firms regarding investment in this.
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The company is bringing an IPO in the band of Rs 262-274. The product portfolio of the company is quite large. The experience of the promoter of the company is very good and the management is strong. Its sales and distribution network is also very good. The company’s manufacturing facility is also well positioned as per its strategic plan. This increases its operational efficiency. Looking at all these aspects, its shares can be bought.
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It can only be compared with Pidilite Industries in the peer companies of HP Adhesive. Pidilite Industries is the market leader. In terms of revenue, HP Adhesive is far behind Pidilite Industries. Its revenue in the financial year 2020-21 has been only Rs 144 crore. Its profit is also much less than Pidilite. Therefore, further subscription can be done keeping in mind the profit margin of the company.
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The company is going to be listed with a PE of 49.23 with a market cap of more than Rs 500 crores. While Pidilite Industries is trading with a PE of 89.75. Therefore, the IPO of this rapidly growing adhesive and silent company can be subscribed. It is looking strong in terms of valuations in its peer companies.
(Article: Harshita Tyagi)
(The stock recommendations given in the story are from the respective research analyst and brokerage firm. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.
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