Speb Adhesives Limited Makes Modest Debut with 7.14% Premium, Lists at ₹60.00 Against Weak Subscription

Speb Adhesives Limited, engaged in manufacturing and distribution of solvent-based synthetic rubber adhesives offering water-based and solvent-based adhesives specializing in polychloroprene-based and SBS styrene-butadiene-styrene-based adhesives with product portfolio including multipurpose adhesives, spray-grade adhesives, premium bonding adhesives, ducting and insulation adhesives, woodworking adhesives, and footwear-grade adhesives serving packaging, automotive, footwear, construction, woodworking, and furniture sectors through business-to-business model, made a modest debut on NSE SME on December 8, 2025. After closing its IPO bidding between December 1-3, 2025, the company commenced trading with a premium of 7.14% opening at ₹60.00 and touched ₹60.00 (up 7.14%).

Speb Adhesives Limited Listing Details

Speb Adhesives launched its IPO at ₹56 per share with minimum investment of 4,000 shares costing ₹2,24,000. The IPO received weak response with subscription of 2.34 times - individual investors at 1.75 times, QIB at 2.06 times, NII at 4.09 times.

First-Day Trading Performance

Listing Price: Speb Adhesives opened at ₹60.00 representing premium of 7.14% from issue price of ₹56.00, touched high of ₹60.00 (up 7.14%) and low of ₹57.00 (up 1.79%), with VWAP at ₹59.55.

Growth Drivers and Challenges

Growth Drivers:

Strong Financial Performance: Revenue increased 5% and PAT rose 19% between FY24 and FY25, solid ROE of 26.30%, robust ROCE of 32.07%, RoNW of 26.30%, healthy PAT margin of 13.16%, strong EBITDA margin of 17.47% demonstrating operational efficiency and profitability.

Diversified Product Portfolio: Comprehensive range including multipurpose adhesives, spray-grade adhesives, premium bonding adhesives, ducting and insulation adhesives, woodworking adhesives, and footwear-grade adhesives serving diverse sectors reducing dependence on single industry vertical.

Manufacturing Infrastructure: MIDC industrial area facility in Taloja with 12,000 liters per day installed capacity, specialization in both water-based and solvent-based adhesives, particularly polychloroprene-based and SBS-based formulations, experienced promoters and management team, consistent delivery through trusted distribution network.

Challenges:

Margin Sustainability Concerns: Despite strong margins, analyst review highlights boosted margins from FY24 raising eyebrows and concerns about sustainability going forward, operating in highly competitive and fragmented adhesives manufacturing segment creating pricing pressures.

Weak Market Reception: Modest listing premium of 7.14%, weak subscription of 2.34 times with individual investors at just 1.75 times.

Competitive Landscape: Operating in fragmented market with multiple established players, limited scale with 41 permanent employees and single manufacturing facility creating operational concentration risk, significant promoter dilution from 100% to 73.18%, modest revenue growth of just 5% in FY25.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹20.44 crore for part financing cost of establishing new manufacturing facility to expand production capabilities of water-based adhesives at Survey No. 120, 121/1 and 121/2 in Village Tambati, District Raigad, Maharashtra.

General Corporate Purposes: ₹4.06 crore allocated for general corporate purposes supporting working capital requirements, operational needs, and strategic initiatives to maintain competitive positioning in adhesives manufacturing market.

Financial Performance

Revenue: ₹45.54 crore for FY25, modest growth of 5% from ₹43.21 crore in FY24, reflecting challenges in expanding sales volumes across packaging, automotive, footwear, construction, woodworking, and furniture sectors despite diversified product portfolio.

Net Profit: ₹5.89 crore in FY25, growth of 19% from ₹4.94 crore in FY24, demonstrating operational leverage and improving profitability through better margins though sustainability of margin expansion questioned by analyst review.

Financial Metrics: Solid ROE of 26.30%, robust ROCE of 32.07%, RoNW of 26.30%, healthy PAT margin of 13.16%, strong EBITDA margin of 17.47%, price-to-book of 4.32x, post-issue EPS of ₹3.25, P/E of 17.22x, net worth of ₹25.36 crore, and market capitalisation of ₹128.50 crore.