HP Adhesives IPO Basis of Allotment

Our Company was originally formed as a partnership firm under the name and style of "M/s. H P International" pursuant to a deed of partnership dated January 01, 1987. M/s. HP International was thereafter converted into a private limited company "HP Adhesives Private Limited" on May 07, 2019, pursuant to the provisions of Chapter XXI of the Companies Act. Subsequently, our Company has been converted into a public limited company and the name of our Company changed to "HP Adhesives Limited" pursuant to a special resolution passed at the Extra-Ordinary General Meeting of our Company held on June 23, 2021 and a fresh Certificate of Incorporation dated July 01, 2021 issued by the RoC. For details in relation to the change in our Registered of our Company, see 'History and Certain Corporate Matters' beginning on page 175 of this Prospectus.

Our Company has filed the Prospectus dated December 20, 2021 with the Registrar of Companies, Mumbai at Mumbai. The Equity Shares are proposed to be listed on the National Stock Exchange of India United ("NSE") and the BSE Limited ("BSE") and the trading will commence on or about December 27, 2021.

PUBLIC OFFER OF 45,97,200 EQUITY SHARES OF FACE VALUE OF RS. 10/- EACH OF HP ADHESIVES LIMITED (THE "COMPANY" OR THE "ISSUER") FOR CASH AT A PRICE OF RS. 274/- PER EQUITY SHARE INCLUDING A SHARE PREMIUM OF RS. 264/- PER EQUITY SHARE (THE 'ISSUE PRICE') AGGREGATING TO RS. 12,596.33 LAKHS ("THE ISSUE") COMPRISING A FRESH ISSUANCE OF UP TO 41,40,000 EQUITY SHARES AGGREGATING UP TO RS. 11,343.60 LAKHS BY OUR COMPANY ('FRESH ISSUE") AND AN OFFER FOR SALE OF UPTO 4,57,200 EQUITY SHARES AGGREGATING UPTO RS. 1,252.73 LAKHS BY ANJANA HARESH MOTWANI. THE OFFER CONSTITUTES 25.02% OF THE POST- OFFER PAID-UP EQUITY SHARE CAPITAL OF OUR COMPANY.

Average cost of acquisition per Equity Share by our Promoters, Anjana Haresh Motwani is Rs 22.97 and Karan Haresh Motwani is Rs. 10 and the Issue Price at upper end ol the Price Band is Rs. 274 per Equity Share.

For details of build-up of Promoters' shareholding in our Company and Risk Factors, please see "Capital Structure" and "Risk Factors" beginning on pages 82 and 28, respectively, of the Prospectus.

The Offer Is being made through the Book Building Process, m terms of Rule 19(2)(b)(l) of the Securities Contracts (Regulations) Rules, 1957, as amended (the "SCRR") the Offer is being made for at least 25% of the post-offer paid-up Equity Share Capital of our Company. The Offer was made through the Book Building Process, in compliance with Regulation 6(2) of the Securities and Exchange Board of India (Issue Capital and Disclosure Requirements) Regulations 2018, as amended ("SEBI ICDR Regulations") wherein not less than 75% of the Offer was available for allocation on a proportionate basis to Qualified Institutional Buyers ("QIBs" and such portion, the "QIB Portion") Our Company, in consultation with the BRIM, allocated up to 60% of the GIB Portion to Anchor Investors at the Anchor Investor Allocation Price, on a discretionary basis in accordance with the SEBI ICDR Regulations, out of which one-third was made be available for allocation to domestic Mutual Funds but no valid Bids were received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) was available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion was available for allocation on a proportionate basis to all QIB Bidders other than Anchor Investors, including Mutua Funds, subject to valid Bids being received at or above the Order Price. Further, not more than 15% of the Otter was available for allocation on a proportionate basis to Non-Institutional Bidders and not mare than 10% of the Otter was available for allocation to RIBs in accordance with SEBI ICOR Regulations, subject to valid Bids being received at or above the Offer Price. All potential Bidders (except Anchor Investors) were mandatorily required to utilise the Application Supported by Blocked Amount ("ASBA") process by providing details of their respective ASBA accounts and UPI ID in case of RIBs using the UPI Mechanism, as applicable, pursuant to which their corresponding Bid Amount was blocked by the Self Certified Syndicate Banks ("SCSBs") or by the Sponsor Bank under the UPI Mechanism, as the case may be, to the extent of the respective Bid Amounts. Anchor Investors were not permitted to participate in the Offer through the ASBA Process. For further details, see "Offer Procedure" beginning on page 335 of this Prospectus.

THE OFFER RECEIVED 374581 APPLICATIONS FOR 40078500 EQUITY SHARES (PRIOR TO TECHNICAL REJECTIONS} RESULTING IN 8.72 TIMES SUBSCRIPTION. THE DETAILS OF THE APPLICATIONS RECEIVED IN THE OFFER FROM VARIOUS CATEGONES ARE AS UNDER (BEFORE TECHNICAL REJECTIONS):

Final Demand

A summary of the final demand as per BSE and NSE as on the Bid/Offer Closing Date at different Bid prices is as under:

The Basis of Allotment (except Anchor Investors) was finalized in consultation with the Designated Stock Exchange, being NSE, on December 22, 2021

A. Allotment to Retail Individual Bidders (after Technical Rejections)

The Basis of Allotment to the Retail Individual Bidders, who have bid at the Cut-Off Price or at the Issue Price of Rs. 274 per Equity Share, was finalized in consultation with NSE. This category has been subscribed to the extent of 47.70 times. The total number of Equity Shares Allotted in Retail Portion is 4,59,720 Equity Shares to 3,60,941 successful Retail Individual Bidders. The category- wise details of the Basis of Allotment are as under:

B. Allotment to Non-Institutional Bidders (after Technical Rejections)

The Basis of Allotment to the Non-Institutional Bidders, who have bid at the Issue Price of Rs. 274 per Equity Share, was finalized in consultation with NSE. The Non-Institutional Portion has been subscribed to the extent of 18.21 times. The total number of Equity Shares Allotted in this category is 6,89,580 Equity Shares to 941 successful Non- Institutional Bidders. The category-wise details of the Basis of Allotment are as under:

C. Allotment to QIBs (after Technical Rejections)

Allotment to QIBs who have Bid at the Issue Price of Rs. 274 per Equity Share or above, has been done on a proportionate basis in consultation with USE. This category has been subscribed to the extent of 1.80 times of QIB Portion. Under the QIB portion, 5% was reserved for Mutual Funds, however, no mutual funds applied in the Issue. The total number of Equity Shares Allotted in this category is 13,79,200 Equity Shares on a proportionate basis, which were allotted to 7 successful QIB Bidders. The category- wise details of the Basis of Allotment are as under:

D. Allotment to Anchor Investors

The bidding (or anchor investors opened and closed on December 14, 2021 The Company received 3 applications from 3 Anchor investors for 20,66,700 Equity Shares. The Anchor Investor Issue Price was finalized at Rs. 274 per Equity Share. A total ol 20,68,700 Equity Shares were allocated under the Anchor Investor Portion aggregating to Rs. 56,68,23,800.00

The Board Meeting of our Company on December 22, 2021 has taken on record the Basis of Allotment of Equity Shares approved by the Designated Stock Exchange, being NSE and has allotted the Equity Shares to various successful Bidders. The Allotment Advice-cum- refund intimation are being dispatched to the address of the investors as registered with the depositories. Further, the instructions to the Self Certified Syndicate Banks for unblocking of funds, transfer to Public Issue Account have been issued on December 23, 2021 and payment to Non-Syndicate brokers have been issued on December 23, 2021. In case the same is not received within ten days, investors may contact the Registrar to the Issue at the address given below. The Equity Shares Allotted to the successful Allottees have been uploaded on December 23, 2021 for credit into the respective beneficiary accounts subject to validation of the account details with the depositories concerned. The Company is in the process of obtaining the listing and trading approval from BSE and NSE, and the trading is expected to commence on or about December 27, 2021.

All capitalised terms used and not specifically defined herein shall have the same meaning as ascribed to them in the Prospectus.

INVESTORS PLEASE NOTE

The details of the Allotment made have been hosted on the website of Registrar to the Issue, Bigshare Services Private Limited at www.bigshareonline.com. All future correspondence in this regard may kindly be addressed to the Registrar to the Issue quoting full name of the First/ Sole applicant. Senal number of the ASBA form, number of Equity Shares bid for, name of the Member of the Syndicate, place where the bid was submitted and payment details at the address given below:

THE LEVEL OF SUBSCRIPTION SHOULD NOT BE TAKEN TO BE INDICATIVE OF EITHER THE MARKET PRICE OF THE EQUITY SHARES ON LISTING OR THE BUSINESS PROSPECTS OF HP ADHESIVES LIMITED.

HP Adhesives Limited has filed the Prospectus with Registrar of Companies Mumbai at Mumbai on December 20, 2021. The Prospectus shall be available on the website of the SEBI at www.sebi.gov.in, the website of the BRLM to the Issue at www.unistonecapital.com and websites of BSE and NSE i.e. www.bseindia.com and www.nseindia.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see section titled "Risk Factors" beginning on page 28 of the Prospectus.

The Equity Shares offered in the Issue have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the 'Securities Act') or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not sublet to. the registration requirements of the Securities Act and any applicable U.S. state securities laws. There will be no public offering in the United States and the securities being offered in this announcement are not being offered or sold in the United States.