The initial public offering (IPO) of Speb Adhesives Limited opened for subscription on Monday, December 1, and will close on Wednesday, December 3. The company, a manufacturer of synthetic rubber adhesives, is looking to raise capital through the public markets, offering its shares to investors.
IPO Details and Financial Performance
The Speb Adhesives IPO price band has been fixed at ₹52 to ₹56 per equity share. Each share carries a face value of ₹10. Investors can bid for a minimum lot of 2,000 shares and in multiples thereafter. For retail investors, the minimum application size is 4,000 shares, translating to an investment of ₹2.24 lakh at the upper end of the price band.
The IPO comprises a fresh issue of ₹27.18 crore and an offer for sale (OFS) of ₹6.55 crore, aggregating to ₹33.73 crore. A significant portion of the fresh issue proceeds, ₹20.44 crore, will be used to set up a new manufacturing facility in Raigad, Maharashtra. This plant will boost the company's production capacity for water-based adhesives. The remaining funds are earmarked for general corporate purposes.
Financially, the company demonstrated steady growth in the fiscal year 2025. It reported a 5% increase in revenue and a notable 19% jump in profit after tax (PAT) compared to the previous year. The EBITDA margin stood healthy at 17.47%, while the PAT margin was recorded at 13.16%.
Business Model and Subscription Status
Speb Adhesive Limited operates on a business-to-business (B2B) model, supplying its range of adhesives to diverse industries. Its clientele spans sectors like packaging, automotive, footwear, construction, woodworking, and furniture. The company's product portfolio includes multi-purpose adhesives, spray-grade options, premium bonding adhesives, and specialized adhesives for ducting, insulation, woodworking, footwear, and generator sets.
As per the conventional SME IPO allocation structure, up to 50% of the offer is reserved for qualified institutional buyers (QIBs), a minimum of 35% for retail investors, and at least 15% for non-institutional investors (NIIs).
On the first day of bidding, the IPO subscription status stood at 6% overall, according to data from chittorgarh.com at 12:49 PM IST. The retail investor portion saw a subscription of 9%, while the NII portion was booked 8%. The QIB portion had not received any bids at that time. In total, bids were received for 2,46,000 shares against the 38,82,000 shares on offer.
Grey Market Premium and Key Advisors
The grey market premium (GMP) for the Speb Adhesives IPO was reported at ₹0 on the first day. This indicates that in the unofficial grey market, shares were trading at parity with the issue price of ₹56, showing neither a premium nor a discount. The GMP is often viewed as a sentiment indicator reflecting investor willingness to pay over the official issue price.
Unistone Capital Pvt. Ltd. is the book-running lead manager for this public issue. The registrar to the issue is MUFG Intime India Pvt. Ltd., and Kalpalabdhi Financials Private Limited is acting as the market maker for the company's shares.
The IPO is part of a busy month for the primary market, with several other issues lined up. Investors are advised to carefully review the company's prospectus, financials, and risk factors before making any investment decision.
