How was the listing of the IPO of HP Adhesives on 27-December, Monday?
Answer
Answer
HP Adhesives was a small sized issue of just about Rs.125 crore but the performance on listing day was quite strong, despite fairly thin volumes and even in the midst of the overall market volatility. Even with a strong listing, HP Adhesives made further gains through the day and closed much stronger, in fact at the 5% upper circuit applicable on listing price. The issue had been subscribed 20.9 times in the IPO.
The IPO price for HP Adhesives was fixed at the upper end of the band at Rs.274. The price band of the IPO was Rs.262 to Rs.274. The pricing was not surprising considering that the issue was subscribed 20.9 times overall. HP Adhesives closed Monday with a market cap of around Rs.616 crore, classifying the company as a micro-cap company.
On 27th Dec, HP Adhesives listed on the NSE at Rs.315, representing a premium of 14.96% on the issue price of Rs.274. However, that was not all. HP Adhesives closed on 27th Dec much stronger at a price level of Rs.330.75, a first day closing premium of 20.71%. On the BSE also, the stock listed at a premium of 16.42% over the issue price and like on the NSE, the stock closed at upper circuit of 5% over the listing price.
On NSE and BSE, HP Adhesives listed at a premium to IPO price and then built on the early gains. On the NSE, the stock touched a high of Rs.330.75 and a low of Rs.315, closing at the highest point of the day. On the BSE, HP Adhesives scaled a high price of Rs.334.95 and a low of Rs.319, closing exactly at the high point of the day. On both the exchanges, the stock was at 5% above the listing price at the close of trading.
Let us turn to volumes. On the NSE on first day of listing, HP Adhesives traded a total of 7.31 lakh shares amounting to traded value of Rs.23.27 crore. On the BSE, the HP Adhesives traded a total of 1.95 lakh shares with a traded value of Rs.6.52 crore. However, considering the small size of the issue, it was not among the most active stocks either on the NSE or on the BSE.