Speb Adhesives shares to debut today. GMP hints at muted gains

Speb Adhesives will make its NSE SME debut on December 8 after closing a 33.73 crore IPO that saw moderate subscription and steady institutional interest. Ahead of the listing, the grey market premium is subdued, indicating a restrained pre-listing sentiment. GMP tends to be less predictive in SME issues where liquidity, sectoral positioning and financial consistency usually determine listing behaviour.

The offering comprised a 27.18 crore fresh issue and a 6.55 crore offer for sale, aggregating to 60.24 lakh shares. Bidding ran from December 1 to 3, and the allotment was finalised on December 4. The IPO was priced at 56 per share at the upper end of the 52–56 band, translating into a retail entry ticket of 2.24 lakh for the minimum 4,000-share lot.

Subscription closed at 2.34 times overall, with QIBs subscribing 2.06 times, retail investors 1.75 times and non-institutional investors 4.09 times. The company also raised 8.98 crore from anchor investors on November 28, allocating 16.04 lakh shares a few days before the main bidding opened.

Speb Adhesives is a solvent-based synthetic rubber adhesives manufacturer with a growing presence in multiple industrial categories. The company supplies water-based and solvent-based adhesives, with a clear specialisation in polychloroprene-based and SBS-based formulations.

Its portfolio includes multipurpose adhesives, spray-grade products, premium bonding solutions, ducting and insulation adhesives, woodworking adhesives, footwear adhesives and products used in generator set manufacturing. The company operates predominantly as a B2B supplier, serving packaging, automotive, footwear, construction, woodworking and furniture manufacturers.

The fresh issue proceeds will be used to part-finance a new water-based adhesives manufacturing facility at Tambati in Raigad district. The expansion is aimed at broadening the product mix and improving capacity utilisation as the company moves deeper into sectors where water-based adhesives are gaining regulatory and commercial traction. A portion of the funds will also go towards general corporate purposes.

Financially, Speb Adhesives delivered modest revenue growth of 5% in FY25, rising from 43.21 crore to 45.54 crore. Profit after tax increased 19% over the same period, rising to 5.89 crore. EBITDA improved to 7.83 crore from 6.53 croreAs the stock lists on Monday, the focus will shift to whether steady fundamentals and an expanding product portfolio can translate into stable demand in early trading.

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