HP Adhesives IPO Subscription Day-3
The Rs.125.96 crore IPO of HP Adhesives Ltd, consisting of a fresh issue of Rs.113.44 crore and an offer for sale (OFS) of Rs.12.52 crore, saw strong response on Day-1 and Day-2 of the IPO. As per the combined bid details put out by the BSE at the end of Day-3, HP Adhesives Ltd IPO was subscribed 20.96 times overall, with demand coming mainly from the retail segment followed by the HNI segment with the QIB segment getting fully subscribed. The issue has closed for subscription on Friday, 17th December.
As of close of 17th December, out of the 25.29 lakh shares on offer in the IPO, HP Adhesives Ltd saw bids for 529.90 lakh shares. This implies an overall subscription of 20.96 times. The granular break-up of subscriptions was dominated by the retail investors with good response from HNIs and a relatively decent show from the QIBs. Normally, it is only on the last day of bidding, the NII bids and the QIB bids build up substantial momentum. That was the scene in the HNI and QIB segments in the issue of HP Adhesives also.
HP Adhesives Ltd IPO Subscription Day-3
| Category | Subscription Status |
| Qualified Institutional (QIB) | 1.82 Times |
| Non-Institutional (NII) | 19.04 Times |
| Retail Individual | 81.24 Times |
| Total | 20.96 Times |
QIB Portion
Let us first talk about the pre-IPO anchor placement. On 14th December, HP Adhesives Ltd did an anchor placement of 20,68,700 shares at the upper end of the price band of Rs.274 to 3 anchor investors raising Rs.56.68 crore, representing 45% of the overall issue size.
The list of QIB anchors included COEUS Global Opportunities Fund (547,500 shares), 3 Sigma Global Fund (966,000 shares) and AG Dynamic Funds Ltd (555,200 shares). The entire anchor issue was spread across these 3 anchor investors only. Anchor investors have a mandatory lock in period of just 1 month.
The QIB portion (net of anchor allocation as explained above) has a quota of 13.79 lakh shares of which it has got bids for 25.13 lakh shares at the close of Day-3, implying 1.82 times subscription from QIBs at the end of Day-3. The entire QIB bids got bunched on the last day but the institutional interest in the anchor placement from the three funds showed that there was institutional appetite for the IPO.
HNI / NII Portion
The HNI portion got subscribed 19.04 times (getting applications for 131.27 lakh shares against the quota of 6.90 lakh shares). This is a good show for Day-3 and this segment normally sees the maximum response bunched on the last day of the issue. Bulk of the funded applications and corporate applications, came in on the last day of the IPO only.
Retail Individuals
The retail portion was subscribed a robust 81.24 times at the close of Day-3, showing strong retail appetite; as has been the general trend with smaller sized IPOs. It must be noted that retail allocation is just 10% in this IPO. For retail investors; out of the 4.60 lakh shares on offer, valid bids were received for 373.50 lakh shares, which included bids for 280.53 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.262-Rs.274) and has closed for subscription on 17th December 2021.
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