Pyramid Technoplast IPO Subscription Day 2: Pyramid Technoplast IPO kicks off for subscription on Friday, August 18, and closes on Tuesday, August 22. The company is looking to raise Rs 153.05 crore through its initial stake sale, including a fresh equity share sale of Rs 91.30 crore, while its promoter Credence Financial Consultancy LLP will offload 37.20 lakh equity shares amounting to Rs 61.75 crore via offer-for-sale (OFS) route.
The company was incorporated in 1997, it manufactures polymer-based molded products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemical, and pharmaceutical companies for their packaging requirements. Pyramid Technoplast started its commercial production in 1998.
Subscription Status
As per the Pyramid Technoplast IPO subscription status, by 12:15 PM on day two of bidding, the public issue has been subscribed 3.40 times whereas its retail portion has been subscribed 3.98 times.
Pyramid Technoplast IPO Price Band
Pyramid Technoplast IPO price band has been fixed in the range between Rs 151 to Rs 166 per equity share of face value of Rs 10 each.
Pyramid IPO lot size
Pyramid Technoplast IPO lot size is 90 equity shares and in multiples of 90 equity shares thereafter.
Pyramid IPO Anchor Investors
The allocation to anchor investors for Pyramid Technoplast IPO is scheduled to take place on Thursday, August 17.
Pyramid Technoplast IPO details
Pyramid Technoplast IPO is made up of fresh issue that totals to Rs 91.30 crore and offer for sale (OFS) portion aggregates to Rs 61.75 crore on upper band price through the Offer.
Pyramid Technoplast IPO objectives
The net proceeds from the offer will be used to cover offer-related costs as well as the payback and/or pre-payment or repayment, in full or part, of any outstanding borrowings that the firm has taken out.
Pyramid Technoplast IPO basis of allotment of shares will be finalised on Friday, August 25 and the company will initiate refunds on Monday, August 28, while the shares will be credited to the demat account of allottees on Tuesday, August 29. Pyramid Technoplast IPO shares are likely to be listed on BSE and NSE on Wednesday, August 30.
Pyramid Technoplast IPO GMP
Meanwhile, the grey market has gone bullish on the public issue after the trend reversal on Dalal Street during Monday deals. According to market observers, shares of Pyramid Technoplast Limited are available at a premium of Rs 28 in the grey market today. This means the grey market is expecting around 17 per cent listing gain from the public issue. They said that Pyramid Technoplast IPO grey market premium (GMP) may further go northward if the current reversal on Dalal Street extends further.
‘Grey market premium’ indicates investors’ readiness to pay more than the issue price.
Should you buy it?
On FY23 financials, the IPO is valued at 19.2 times P/E, 13.2 times EV/EBITDA and 1.4 times EV/Sales. Pyramid Technoplast is one of the leading manufacturers of rigid IBC in India, manufacturing 1,000 liter capacity IBC, said Reliance Securities in its note for the issue.
“The company has long term relationships with distributors or vendors, both domestic and international. In view of diversified polymer-based product portfolio, healthy financials, strong customer base, focus on quality of products, we recommend a ‘subscribe’ to the issue,” it added.
Pyramid Technoplast is a well-established player in the plastic packaging industry with a proven track record of financial performance. The company has a strong brand presence and a wide customer base, and it is also expanding its operations. It has strategic locations for its manufacturing units, said Swastika Investmart.
“However, the company faces some risks, such as competition from new entrants, fluctuations in the price of raw materials, and changes in government policies. Additionally, the company has experienced negative cash flow in the past. Nevertheless, the IPO is priced at a P/E of around 16.24 times, high-risk investors may apply for this IPO,” it added.
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