Pyramid Technoplast IPO: Should You Subscribe To The Issue As It Opens Today?

The initial public offer (IPO) for Pyramid Technoplast has finally opened for subscription on Friday and will remain available for public bid till August 22, 2023. The company plans to sell the shares in the range of 151-166 apiece with the lot size of 90 equity shares.

The IPO contains a fresh issue of 55 lakh shares and an offer for sale (OFS) of 37.2 lakh shares under which Credence Financial Consultancy will be selling its stake. Pyramid Technoplast plans to raise 153.05 crore via its initial stake sale that will be consisting of fresh equity share sell of Rs 91.30 crore as the promoter Credence Financial Consultancy expects to offload 37.20 lakh equity share worth Rs 61.75 crore through offer-for-sale (OFS) route.

Pyramid Technoplast raised Rs 27.6 crore from anchor investors ahead of its IPO by allotting 16.6 lakh shares at Rs 166 each. Investors include Carnelian Structural Shift Fund, Alchemie Ventures Fund, Pluris Fund and Resonance Opportunities Fund, according to Trendlyne.

The share allotment is expected to be finalised by August 25 and the tentative date for listing is August 30 when the company will be listed on both BSE and NSE.

Brokerage firm Anand Rathi sounded bullish and said, "At the upper price band, the company is valued at a P/E of 16.21x FY23 earnings with a market cap of Rs 611 crore post issue of equity shares and return on net worth of 29.61%. We believe that the issue is fairly priced and recommend subscribing for the long term."

Meanwhile, Reliance Securities has advised investors to subscribe to the issue and said, "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."

Pyramid Technoplast is an industrial packaging company engaged in the business of manufacturing polymer based olded products (polymer drums) used by chemical, agrochemical, speciality chemical and pharmaceutical companies for their packaging requirements. It is one of the few manufacturers of Rigid Intermediate Bulk Containers (IBC) in India having the know-how, technology and equipment to manufacture 1,000 litre capacity IBC. The company began its commercial production in 1998 and was incorporated in 1997.

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