HP Adhesives Expands with Unitybond Solutions Acquisition

On July 09, 2024, HP Adhesives Limited announced its additional investment in Unitybond Solutions Private Limited, a wholly-owned subsidiary.

It has subscribed to 40,000 fully paid-up Equity Shares of₹10 each at an issue price of ₹500 each, including a premium of ₹490 per share. These shares were part of Unitybond Solutions’ rights issue and hold equivalent status to HP Adhesives’ existing Equity Shares.

Acquisition Details

Related Party Transaction: The acquisition of USPL does not fall under related party transactions. It is a wholly owned subsidiary of HP Adhesives Limited, and there are no interests from promoters, promoter groups, or related entities influencing the acquisition.

Industry: USPL operates in the adhesives and sealants industry.

Purpose of Acquisition: HP Adhesives Limited aims to acquire USPL to expand its business in manufacturing, distributing, and trading adhesives and sealants, which aligns with its core business activities.

Acquisition cost: HP Adhesives Limited has acquired Unitybond Solutions Private Limited (USPL) for ₹2,00,00,000.

Shareholding Percentage: HP Adhesives Limited now holds 100% ownership of USPL.

About Unitybond Solutions Private Limited

Unitybond Solutions Private Limited, incorporated on April 11, 2024, under the Indian Companies Act, 2013, operates as a wholly owned subsidiary of HP Adhesives Limited. It is newly incorporated. Hence, the size and turnover details are not applicable.

About HP Adhesives Ltd

HP Adhesives Limited, previously known as HP Adhesives Private Limited, is now a publicly traded company. They specialise in manufacturing and selling various consumer adhesives and sealants like PVC, cPVC, and uPVC solvent cement, synthetic rubber adhesive, PVA adhesives, silicone sealant, and acrylic sealant.

They operate through a network of 4 warehouses and over 750 distributors, serving more than 50,000 dealers across India. In August 2019, the company issued 12.99 million equity shares at face value. Later, in December 2021, they launched a public issue raising ₹125.96 crore, with shares priced at ₹274 each, including a premium of ₹264 per share. These shares debuted on the BSE and NSE on December 27, 2021.

On July 10, 2024, HP Adhesives Ltd’s share price opened at ₹100.78, touching the day’s low at ₹98.77 as of 10:15 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.