HP Adhesives made a strong stock market debut on Monday as its shares listed at a premium of 16 per cent.

Shares of the company got listed at Rs 315 per share on the National Stock Exchange (NSE) at a premium of 15 per cent to its IPO issue price of Rs 274 apiece. On the Bombay Stock Exchange (BSE), the shares of the company started trading at Rs 319.

Following the decent stock market listing, shares of the company surged further on the stock exchanges. It was trading at a premium of 20 per cent on the NSE and 22 per cent on the BSE at 10:30 am.

The decent listing was in line with what the grey market premium had signalled ahead of the company’s stock market debut. The company’s IPO, which was open for subscription from December 15-17, saw good participation and was booked nearly 21 times.

The IPO of the adhesives and sealants company received bids for 5,29,89,650 shares against 25,28,500 shares on offer. The price band of the Rs 125.96 crore IPO was set at Rs 262-274 apiece.

The IPO comprises a fresh issue of 4.14 million shares worth Rs 113.44 crore and an offer for sale aggregating to Rs 12.53 crore. The company plans to use the proceeds from the IPO to fund capital expenditure for expansion and to support incremental working capital requirements.

The company manufactures a wide range of consumer adhesives and sealants, such as PVC, cPVC and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, acrylic sealant, and more. The products of the company have applications in multiple industries, suggesting that the company has a wide range of clients.

HP Adhesives had a distribution network of 4 depots situated in Delhi, Bengaluru, Kolkata and Indore as of September 30, 2021. It had more than 750 distributors who cater to more than 50,000 dealers in India.