SPEB Adhesives Ltd IPOSPEB

The IPO opens on 01 Dec 2025 & closes on 03 Dec 2025.

SPEB Adhesives Limited was initially formed as a partnership Firm in the name of 'M/s. Speb Rubber Industries', which subsequently was converted into Private Limited Company and incorporated as 'SPEB Adhesives Private Limited' vide Certificate dated November 07, 1990 issued by the Registrar of Companies, Maharashtra. The status was then converted into a public Company, and the name of Company was changed to SPEB Adhesives Limited', via fresh certificate Incorporated on January 24, 2025, issued by the ROC. The Company is a manufacturer of synthetic rubber adhesives and provides a wide range of adhesive solutions for industries such as construction, woodworking, upholstery, footwear, and HVAC. It operates a manufacturing facility with a daily production capacity of 12,000 litres per day in Taloja , Raigad district of Maharashtra. SPEB's portfolio includes multipurpose adhesives like SPEB-7, as well as specialized formulations tailored to specific industry requirements. Within the synthetic rubber-based adhesive, Company offer both - solvent-based and water-based adhesives. Within the solvent-based category, it mainly specialize in polychloroprene-based and SBS (styrene-butadiene-styrene)-based adhesives, known for their high bonding strength, durability, and wide application range. The Company follow a B2B business model, and these products are used in Hardware, Foam and Furnishing, Ducting and Insulation, Woodworking, Footwear, and Generator Set industries. To serve a diverse customer base, it operate through three major business channels, viz. Dealer-Distribution Network, Industrial Sales, and Government Supply Contracts. Company is proposing the Initial Public Offer by issuing an aggregate of 62,00,000 equity shares of face value Rs 10 each comprising a fresh issue of 50,00,000 equity shares and 12,00,000 equity shares via offer for sale.

SPEB Adhesives Ltd IPO will close on 03 Dec 2025.

<ul><li>Strong Financial Foundation for Future Growth.</li><li>Diverse product portfolio.</li><li>Consistent Delivery Through a Trusted Network.</li><li>Experienced Promoters and senior management team.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Kirtikumar Vithlani</td> <td>5379960</td> <td>30.55</td> <td>4794960</td> <td>21.34</td> </tr> <tr> <td>2</td> <td>Harish Vithlani</td> <td>5379960</td> <td>30.55</td> <td>4794960</td> <td>21.34</td> </tr> <tr> <td>3</td> <td>Gaurav Vithlani</td> <td>3371875</td> <td>19.33</td> <td>3371875</td> <td>15.01</td> </tr> <tr> <td>4</td> <td>Bhaumik Vithlani</td> <td>3371875</td> <td>19.33</td> <td>3371875</td> <td>15.01</td> </tr> <tr> <td>5</td> <td>Madhu Vithlani</td> <td>10475</td> <td>0.06</td> <td>10475</td> <td>0.05</td> </tr> <tr> <td>6</td> <td>Meena Vithlani</td> <td>10475</td> <td>0.06</td> <td>10475</td> <td>0.05</td> </tr> <tr> <td>7</td> <td>Bhakti Vithlani</td> <td>10475</td> <td>0.06</td> <td>10475</td> <td>0.05</td> </tr> <tr> <td>8</td> <td>Khyati Vithlani</td> <td>10475</td> <td>0.06</td> <td>10475</td> <td>0.05</td> </tr> </tbody> </table>

<ul><li>We depend on our Multipurpose Products category for a significant portion of our revenues (55.79%, 59.02%, 62.01%, and 64.75% of our revenue from operations for the period ended September 30, 2025 and Fiscal Year March 31, 2025, March 31, 2024, and March 31, 2023).</li><li>We rely on the availability of Toluene, Hexane, Synthetic Rubber and other raw materials, as well as third-party suppliers and manufacturers, for the uninterrupted supply of raw materials. We do not have continuing or exclusive arrangements with any supplier, and our top 10 suppliers contribute to more than 76.74% of our total raw material and supply costs for the period ended September 30, 2025. The loss of key suppliers or delays in raw material deliveries could adversely impact our business, financial condition, results of operations, and cash flows.</li><li>Our existing and proposed manufacturing facility situated in Maharashtra, which exposes us to regional risks and risks in relation to our manufacturing process. Any disruption, slowdown, or shutdown in our manufacturing operations could adversely affect our business, results of operations, financial condition and cash flows.</li><li>Our revenues are highly dependent on customers primarily located in Maharashtra. Any decline economic health in Maharashtra could adversely affect our business, financial condition and results of operations.</li><li>We are dependent on third party transportation providers for delivery of raw materials to our company from our suppliers and delivery of our finished products to our customers. We have not entered into any formal contracts with our transport providers and any failure on part of such service providers to meet their obligations could adversely affect our business, financial condition and results of operation.</li><li>A majority of our revenue from operations is from our top 10 customers (which accounted for more than 39.39%, 38.14%, 36.61%, and 40.22% of our total revenue from operations for the period ended September 30, 2025, and Fiscal Year ended March 31, 2025, March 31, 2024, and March 31, 2023). Loss of any such customers or reduction in business or demand from such customers will have a significant adverse impact on our business and results of operation.</li><li>Our Company is yet to place orders for the plant and machinery for the proposed manufacturing unit. Any delay in placing orders or procurement of such plant and machinery may delay the schedule of implementation and possibly increase the cost of commissioning the manufacturing unit.</li><li>We have witnessed negative cash flow from operating activities in the past. Any negative cash flows in the future would adversely affect our cash flow requirements, which may adversely affect our ability to operate our business and our financial condition.</li><li>Under-utilization of our manufacturing capacity and an inability to effectively utilize our expanded manufacturing capacity could have an adverse effect on our business, future prospects, and financial performance, and the information on installed capacities, historical production, and capacity utilization included in this Red Herring Prospectus is based on estimates.</li><li>Delay in customer payments and receivables may adversely impact on its profits and affect the cash flows.</li><li>The company propose to utilize a portion of the Net Proceeds of the Offer towards capital expenditure, including towards capacity expansion by setting up of a new manufacturing facility which could be subject to delays, cost overruns, and other risks and uncertainties.</li><li>The company expansion into new product segment, i.e. water-based adhesives, may expose it to new operational challenges and more risks.</li><li>The company Registered office and manufacturing unit is located on premises taken on a lease basis and there can be no assurance that the Lease agreement will be renewed upon termination or that we will be able to obtain other premises on leave and license on same or similar commercial terms.</li><li>The company involved in certain legal proceedings, which, if determined adversely, may affect the business and financial condition.</li><li>Information relating to historical installed capacity of the manufacturing facility and the projected capacity utilization of the manufacturing facility is often based on assumed demand levels for the company's products If actual demand falls short of expectations, the company may not be able to utilize its full production capacity, leading to under utilization.</li><li>The objects of the Fresh Issue for which the funds are being raised have not been appraised by any bank or financial institutions. Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus would be subject to certain compliance requirements, including prior Shareholders' approval.</li><li>The company has been instances of delays in payment of statutory dues, i.e. ESIC and EPF by the Company. In case of any delay in payment of statutory due in future by the Company, the Regulatory Authorities may impose monetary penalties on it or take certain punitive actions against the Company in relation to the same which may have adverse impact on its business, financial condition and results of operations.</li><li>The company face foreign exchange risks that could adversely affect the results of operations and cash flows.</li><li>The company dependent on the Promoters, Directors, KMPs and senior management, including other employees with technical expertise. Any loss of or its inability to attract or retain such persons could adversely affect the business, results of operations and financial conditions.</li><li>The company face significant competition for skilled professionals, and the success depends in large part upon Its ability to attract and retain these personnel. Any inability on the part to attract and retain the company key managerial personnel and/or talented professionals may adversely affect its business and results of operations.</li><li>As of the date of this Red Herring Prospectus, the Company's logo and certain other trade names and trademarks are registered. However, some trademark applications are still pending and objected. Failure to adequately protect its intellectual property rights could adversely impact the competitive position, financial condition, and profitability.</li><li>The company contingent liabilities as stated in the Restated Financial Statements could affect the financial condition.</li><li>The company funding requirements and proposed deployment of the Net Proceeds are not appraised by any independent agency and are based on management estimates and may be subject to change based on various factors, some of which are beyond its control.</li><li>The company has been some instances of delays in filing/ incorrect filings in the past with the Registrar of Companies (RoC). Further, the Company has not complied with certain statutory provisions under various acts. Such non-compliances/ lapses may attract penalties.</li><li>The Company requires significant amount of working capital for a continuing growth. Increase in business activities may be reflected by an absolute increase in gap between the trade receivables and trade parables, requiring it to arrange for increased working capital limits. the company inability to meet its working capital requirements may adversely affect the results of operations.</li><li>The company insurance coverage may not adequately protect it against potential risks, leading to uninsured losses or losses exceeding the company coverage, which could have a material adverse effect on its business.</li><li>The company failure to adapt to technological developments or industry trends or anticipate shifting of product trends, it could affect the performance and features of the products and reduce its attractiveness to the customers. This could lead to a significant decline in market demand, affecting sales and overall revenue generation.</li><li>Any inefficiencies in or failure of the billing and management information systems may adversely affect the business, financial condition and results of operations.</li><li>Its inability to collect receivables in time or at all and default in payment from the customers could result in the reduction of its profits and affect the cash flows.</li><li>The company has in the past entered into related party transactions and may continue to do so in the future.</li><li>The company Promoters and Directors hold Equity Shares in the Company and are therefore interested in the Company's performance in addition to their remuneration and reimbursement of expenses.</li><li>The company directors does not has any prior experience of being a director in any other listed company in India and this may present certain potential challenges for the Company and in the event of any material non-compliance where our directors are held liable and responsible, its may have to appoint new directors.</li><li>Its business operations are dependent on contract labour and an inability to access contract labour at reasonable costs at the project sites may adversely affect its business.</li><li>This Red Herring Prospectus contains information from an industry report prepared by Infomerics Analytics & Research, commissioned by us for the purpose of the Offer for an agreed fee, and any reliance on such data is subject to inherent risks.</li><li>The Company operate in a highly evolving market and any inability to respond to such changing conditions could adversely affect the business and results of operations.</li><li>The deployment of funds is entirely at the discretion and as per the details mentioned in the chapter titled "Objects of the Offer".</li><li>Obsolescence, destruction, theft, and breakdowns of the equipment or failures to repair or maintain equipment may adversely affect its business, cash flows, financial condition and results of operations.</li><li>Its business operations are affected by Job work expenses the increasing and substantial nature of these costs represents a risk to the financial performance, operational efficiency, and profitability.</li><li>The company could be harmed by employee misconduct or errors that are difficult to detect, and any such incidences could adversely affect the financial condition, results of operations and reputation.</li><li>The company dependent on third-party contract manufacturer for manufacturing water based adhesive products.</li><li>Failure to Scale High-Margin Products May Adversely Affect Profitability.</li><li>The company has not made any alternate arrangements for meeting the capital requirements for the Objects of the Offer. Further, the company has not identified any alternate source of financing the `Objects of the Offer. Any shortfall in raising / meeting the same could adversely affect the growth plans, operations and financial performance.</li><li>Its may be vulnerable to certain operational risk such as credit risk.</li><li>Revocation of accreditation's may negatively impact the company brand credit ability and customer's trust.</li><li>The company inability to obtain, renew or maintain the company statutory and regulatory permits and approvals required to operate its business may have a material adverse effect on the business, financial condition and results of operations.</li><li>Any variation in the utilization of the Net Proceeds as disclosed in this Red Herring Prospectus shall be subject to certain compliance requirements, including prior approval of the shareholders of the Company.</li><li>The average cost of acquisition of Equity Shares held by the company Promoters could be lower than the Offer Price.</li><li>The company has not paid any dividends in the past Financial Years. its ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.</li><li>The company Promoters may enter into ventures that may lead to real or potential conflicts of interest with the business.</li><li>Its will continue to be controlled by the company Promoter and Promoter Group after the completion of the Offer, which will allow them to influence the outcome of matters submitted for approval of the shareholders.</li><li>Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Offer.</li><li>Its will not receive any proceeds from the Offer for Sale portion, and the Promoter Selling Shareholders shall be entitled to the Offer Proceeds to the extent of the Equity Shares offered by them in the Offer for Sale. its Promoters are therefore interested in the Offer in connection with the Equity Shares offered by them in the Offer for Sale.</li><li>The company business is substantially affected by prevailing economic, political and other prevailing conditions in India.</li><li>Its may incur indebtedness during the course of business. the company cannot assure that its would be able to service the existing and/ or additional indebtedness.</li><li>The company may require additional equity or debt in the future in order to continue to grow the business, which may not be available on favorable terms or at all.</li><li>The company Equity Shares has never been publicly traded, and after the Offer, the Equity Shares may experience price and volume fluctuations, and an active trading market for the Equity Shares may not develop. Further, the Offer Price, market capitalization to revenue from operations multiple, price to revenue from operations ratio and price earning ratio based on the Offer Price of the Company, may not be indicative of the market price of the Equity Shares on listing.</li><li>There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.</li><li>QIBs and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>Any future issuance of Equity Shares may dilute the shareholding of the Investor, or any sale of Equity Shares by the company Promoter or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.</li></ul>

The Issue type of SPEB Adhesives Ltd is Book Building - SME.

The minimum application for shares of SPEB Adhesives Ltd is 4000.

The total shares issue of SPEB Adhesives Ltd is 6024000.

Initial public offering of up to 60,24,000 equity shares of face value of Rs. 10/- each ("Equity Shares") of Speb Adhesives Limited ("Company" or the "Issuer") for cash at a price of Rs. 56 per equity share (including a share premium of Rs. 46 per equity share) ("Offer Price") aggregating up to Rs. 33.73 crores comprising a fresh issue of up to 48,54,000 equity shares aggregating up to Rs. 27.18 crores by the company ("Fresh Issue") and an offer for sale of up to 11,70,000 equity shares aggregating up to Rs. 6.55 crores (the "Offered Shares") comprising up to 5,85,000 equity shares by Kirtikumar Vithlani aggregating up to Rs. 3.28 crores and up to 5,85,000 equity shares by Harish Vithlani aggregating up to Rs. 3.28 crores (the "Selling Shareholders" and such offer, the "Offer for Sale") (the "Offer for Sale" and together with the fresh issue, the "Offer") of which 38,000 equity shares aggregating to Rs.0.21 crores will be reserved for subscription by market maker to the offer (the "Market Maker Reservation Portion"). The offer, less market maker reservation, i.e. net offer 54,86,000 equity shares of face value of Rs.10/- each at price of Rs. 56 per equity share aggregating to Rs. 30.72 crores is herein after referred to as the "net offer". The offer and the net offer will constitute 26.82% and 24.42% respectively of the fully-diluted post-offer paid-up equity share capital of the company.