Speb Adhesives

• Speb Adhesives is coming out with an initial public offering (IPO) of 60,24,000 shares in a price band of Rs 52-56 per equity share. 
• The issue will open on December 01, 2025 and will close on December 03, 2025.
• The shares will be listed on SME Platform of NSE.
• The face value of the share is Rs 10 and is priced 5.20 times of its face value on the lower side and 5.60 times on the higher side.
• Book running lead manager to the issue is Unistone Capital.
• Compliance Officer for the issue is Monika Dhawan.

Profile of the company

Speb Adhesives is engaged in the business of manufacturing solvent-based synthetic rubber adhesives. Within the synthetic rubber-based adhesive, it offers both - solvent-based and water -based adhesives. It primarily focuses on in-house manufacturing of solvent-based adhesives, with water-based adhesives being produced on a contractual manufacturing basis. Within the solvent-based category, it primarily specializes in polychloroprene-based and SBS (styrene-butadiene-styrene)-based adhesives, known for their high bonding strength, durability, and wide application range. 

The company’s product portfolio includes various products customized for industrial and retail applications, such as multi-purpose adhesives, spray-grade adhesives, premium bonding adhesives, ducting and Insulation adhesives, woodworking adhesives, footwear-grade adhesives, and adhesives used in Generator Set. It follows a B2B business model, and its products are used in Hardware, Foam and Furnishing, Ducting and Insulation, Woodworking, Footwear, and Generator Set industries. To serve a diverse customer base, it operates through three major business channels, viz. Dealer-Distribution Network, Industrial Sales, and Government Supply Contracts.

Given its significant exposure to the retail and distribution segment, the company follows a continuous manufacturing model, producing ahead of demand rather than relying solely on order-based production. This approach ensures product availability across markets and enables rapid turnaround to meet distributor and dealer requirements. It manufactures products in SKUs (Stock Keeping Units) ranging from 10ml to 30 litres, along with a newly added 200kg SKU in the Woodworking category. It operates out of a manufacturing facility located in the MIDC (Maharashtra Industrial Development Corporation) - industrial area of Taloja, Raigad, Maharashtra, with an installed production capacity of 12,000 liters per day.

Proceed is being used for:

• Part finance the cost of establishing new manufacturing facility to expand its production capabilities of Water based adhesives at Village Tambati, Taluka Khalapur, District Raigad, Maharashtra, India (Proposed new facility)
• General corporate purposes

Industry Overview

The India Adhesives Market size is estimated at $2.87 billion in 2024 and is expected to reach $3.76 billion by 2028, growing at a CAGR of 6.98% during the forecast period (2024-2028). The Indian adhesive industry is experiencing significant transformation driven by rapid industrialization and technological advancements across multiple sectors. The packaging industry, which represents one of the largest end-user segments, is witnessing remarkable growth with the sector developing at a CAGR of 22-25% according to the Packaging Industry Association of India (PIAI). This growth is primarily attributed to the rising middle-class population, improvement of supply-chain systems, and emerging e-commerce activities, leading to increased demand for innovative packaging adhesives solutions in flexible and rigid packaging applications.

Increasing preference for efficient and high-performance adhesives in several end-use industries such as automotive, construction, etc., is resulting in the steady expansion of the global adhesive market at 5% CAGR from 2024 to 2034. The market is calculated at $68.94 billion in 2024 and is projected to reach $112.29 billion by 2034-end Increasing use of adhesives in multiple applications in the automotive, footwear, woodworking, packaging, and construction industries is estimated to contribute to market growth. The automotive industry is consistently emphasizing designing fuel-efficient and lightweight vehicles, which can minimize CO2 emissions. In addition, the implementation of stringent regulations related to CO2 emissions is having a positive impact on automotive adhesive demand as they offer structural strength to vehicles while minimizing emissions. In addition, effective bonding features of adhesives are also driving their demand in end-use industries.

Adhesives are capable of improving the uniform distribution of strain and stress across the joints and bearing heavy loads. They assist in maintaining the strength and integrity of materials as no fastening elements, rivets, or holes are present to weaken their structure. Global demand for adhesives for use in footwear & leather goods is anticipated to increase at a CAGR of 5.3% and reach a value of $21.9 billion by 2034. East Asia is projected to account for 24.6% share of the global market by the end of the forecast period 2024-2034. Sales of adhesives in Japan are approximated to rise at a CAGR of 5.2% from 2024 to 2034. In the construction industry, adhesives are used extensively in multiple applications, including bonding, sealing, weather-sealing, and waterproofing. In addition, they are adopted in the healthcare industry for various purposes, such as assembling different types of parts of medical devices. Furthermore, increasing healthcare expenditure around the world is anticipated to generate demand for required facilities and tools, subsequent having a positive impact on the demand for adhesives in the coming 10 years. 

Pros and strengths

Strong financial foundation for future growth: The company has built its business on a solid financial base through careful planning and prudent financial management, reflected through its consistent growth and operational efficiency. The company’s growth has been supported by a conservative capital structure. It has scaled its operations significantly over the years, while maintaining strong profitability and cash generation. From Fiscal 2021 to Fiscal 2025, its revenue from operations grew from Rs 1,860.03 lakh to Rs 4,479.32 lakh, registering a CAGR of 24.50%, and its profit after tax rose from Rs 250.72 lakh to Rs 589.46 lakh, representing a CAGR of 23.50%, demonstrating sustained earnings momentum driven by operational efficiencies and higher-margin product offerings. Importantly, it operates with zero debt on its books and delivered a Return on Capital Employed (ROCE) of 100% in Fiscal 2025.

Diverse product portfolio: The company offers a wide range of adhesives to cater to the specific needs of various sectors such as Hardware, Foam and Furnishing, Ducting and Insulation, Woodworking, Footwear, and Generator Set industries. The adhesives are also made available in multiple SKUs, ranging from 10ml to 30 litres, along with a newly added SKU of 200kgs, to be able to serve and satisfy the requirements of customers operating at different volumes and consumption levels. By diversifying its offerings, it is able to tap into multiple sectors and a larger customer base, thereby making its business more resilient to demand fluctuations and mitigating the risks associated with relying on product-specific market forces for business growth. Further, its customers can source their adhesives’ requirements relating to various materials and surfaces at a single stop, creating trust and stronger customer relationships, thereby laying a strong foundation for sustained growth.

Consistent delivery through a trusted network: The company caters to a diverse range of industries including Hardware, Foam and Furnishing, Ducting and Insulation, Woodworking, Footwear, and Generator Set by providing quality adhesives suited to the specific needs of each sector. Over time, the company has established strong relationships with clients across these industries by consistently meeting their product requirements with reliability and precision. Some of its dealers are also retailers through whom it is able to tap into the D2R (Direct-to-Retail) sector within Maharashtra. Its clientele comprises of over 380 active customers. It takes pride in the enduring informal partnerships it has built with many of its clients. The consistent repeat business it received underscores the trust it has earned and contributes to a stable and predictable revenue base. Over the past three financial years, it has successfully served more than 400 repeat customers each year on an average, demonstrating not only its commitment to dependable service and customer satisfaction, but also the strength and reach of its well-established distribution network.

Risks and concerns

High revenue dependence on top customers: A majority of the company’s revenue from operations is from its top 10 customers (which accounted for more than 39.39%, 38.14%, 36.61%, and 40.22% of its 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 its business and results of operation.

Significant reliance on multipurpose product segment: The company is dependent on its Multipurpose Products category for a significant portion of its revenues (55.79%, 59.02%, 62.01%, and 64.75% of its revenue from operations for the period ended September 30, 2025 and Fiscal Year March 31, 2025, March 31, 2024, and March 31, 2023). Any loss or significant reduction in its revenue from Multipurpose Products category for any reason including due to limitation to meet any change in quality specification, customization requirements, or change in technology, disputes with a customer, any adverse effects of its products, adverse changes in the financial condition of its customers, such as possible bankruptcy or liquidation or other financial hardship could have a material adverse effect on its business, results of operations, financial condition and cash flows.

Geographic concentration risk from Maharashtra exposure: The company has derived a substantial portion of its revenue from operations from customers based in Maharashtra. Its revenue of operations for Maharashtra was accounted 70.76%, 73.79%, 75.51%, and 77.46% of its revenue from operations domestically for the period ended September 30, 2025 and in Fiscal 2025, 2024, and 2023, respectively. If the economic condition in this state becomes volatile or uncertain or the conditions in the financial market were to deteriorate or if there are any changes in laws applicable to its product’s manufacturing and operations or if any restrictive conditions are imposed on the company or its business, or any negative publicity against the company or its products, or the pricing of its products may become less favourable for it. Further, its customers located in these geographies may reduce or postpone their purchase significantly which would adversely affect its operations and financial condition.

Outlook

Speb Adhesive is a company engaged in the manufacturing and distribution of solvent-based synthetic rubber adhesives. The company offers both the water-based adhesives and solvent-based adhesives. Within the solvent-based adhesives, it specializes in polychloroprene-based and SBS (styrene-butadiene-styrene)-based adhesives. The company has strong financial foundation for future growth. On the concern side, the company depends on its Multipurpose Products category for a significant portion of its revenues. Any loss or significant reduction in its revenue from Multipurpose Products category for any reason could have a material adverse effect on its business, results of operations, financial condition and cash flows. Moreover, the company’s existing and proposed manufacturing facility situated in Maharashtra, which exposes it to regional risks and risks in relation to its manufacturing process. 

The company is coming out with a maiden IPO of 60,24,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 52-56 per equity share. The aggregate size of the offer is around Rs 31.32 crore to Rs 33.73 crore based on lower and upper price band respectively. On performance front, the company’s revenue from operations in the financial year 2024-25 is Rs 4,479.32 lakh. This represents Rs 217.69 lakh or 5.11% increase compared to the previous financial year's revenue from operations of Rs 4,261.64 lakh. Moreover, the company has reported 19.35% rise in its net profit at Rs 589.46 lakh in FY25 as compared to Rs 493.88 lakh in FY24. 

The company is diversifying its product portfolio to capitalize on the growing industrial demand in the adhesives’ market by entering into in-house manufacturing of water-based adhesives. As part of its strategy to expand internationally, it is focusing on enhancing its presence in the Gulf Cooperation Council (GCC) region. To support this, the company has appointed Nitesh Bhardwaj as its employee in Dubai, UAE, to directly oversee and lead sales operations in the region. This strategic move is aimed at strengthening on-ground execution, fostering closer relationships with channel partners, and improving responsiveness to market dynamics. He will work closely with its indentation agent, leveraging their regional network and market knowledge to further extend its reach, tap into new customer segments, and drive growth. By aligning leadership presence with key growth markets, it aims to deepen market penetration, broaden product visibility, and position its brand more strongly in the competitive landscape of the GCC.