The initial public offering of Pyramid Technoplast is receiving a good response from investors. The IPO, which began on August 18, offers shares in the price range of Rs 151-166 apiece. The company aims to raise a total of Rs 153.05 crore, with a fresh equity share sale of Rs 91.30 crore and an offer-for-sale of up to 37.20 lakh equity shares. Investors can bid for a minimum of 90 equity shares and its multiples thereafter.
The investors have made bids for 52,43,490 equity shares, which is 69 times the number of shares offered for subscription by 1.00 pm on Friday, August 18, 2023. The subscription for retail investors was 1.02 times, while the non-institutional bidders received 29% of the total bids. However, the quota for qualified institutional bidders (QIBs) was not yet filled by the same time. The subscription period is set to close on Tuesday, August 22
Pyramid Technoplast, incorporated in 1997, is a manufacturer of polymer-based molded products, specifically Polymer Drums. These products are primarily used by chemical, agrochemical, specialty chemical, and pharmaceutical companies for packaging purposes.
The company started its commercial production in 1998 and has since built a strong customer base and established long-term relationships with its clients. Its diversified customer base and comprehensive product portfolio contribute to its positive outlook in the market.
However, the brokerage firms have mixed opinions on the company’s IPO. Some suggest subscribing to the IPO, citing the company’s fair pricing, healthy financials, and strong customer base. These analysts also highlight the company’s return on net worth, which is at 29.61%.
On the other hand, a few analysts have recommended skipping the IPO due to inconsistent debt, high competition, and thin margins. These concerns could impact the company’s profitability and growth potential.
Anand Rathi Shares and Stock Brokers suggested subscribing to the IPO for the long term, expressing confidence in the company’s valuation and recommending it as a good investment.
Before the IPO, Pyramid Technoplast raised Rs 27.55 crore through anchor investors, allocating equity shares to Carnelian Structural Shift Fund, Alchemie Ventures Fund, Pluris Fund, and Resonance Opportunities Fund at a price of Rs 166 per share.
