Pyramid Technoplast’s Rs 153 Initial Public Offering (IPO) received a positive response from investors on the third and final day of the auction. Pyramid Technoplast is selling its shares for between Rs 151-166 per share during a three-day bidding process and investors can bid a minimum of 90 equity shares and multiples of it later. The company is looking to raise Rs 153.05 crore through an IPO consisting of a sale of new equity shares worth Rs 91.30 crore and an offering (OFS) up to 37,20 lakh equity shares. possess.
According to the data, investors bid 7,30,21,230 equity shares, or 9.66 times the 75,60,400 equity shares offered before 12:15 p.m. on Tuesday, Aug. 2023. The release opened for pre-order on August 18 and will close today.
The percentage of retail investors who achieved registration was 9.76 times, while the allocation to non-organizational contractors reached 14.27 times. The Quota for Qualified Institutional Bidders (QIBs) was registered 1.57 times at the same time.
Established in 1997, Pyramid Technoplast manufactures polymer based molding products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemicals and pharmaceutical companies for requirements their packaging. Pyramid Technoplast began commercial production in 1998.
Brokers have mixed views on the matter as some suggest ‘signing up’ to those who bid actively on it, citing reasonable prices, sound financial position, favorable conditions and favorable conditions. solid customer base and long-term relationships with customers. On the other hand, some analysts have suggested skipping on the grounds of inconsistent debt, high competition, and low margins.
“The company has a diverse customer base along with a comprehensive product portfolio. At the higher end of the spectrum, the company is pricing at a P/E of 16.21x FY2323 earnings with market capitalization. market is Rs 611 crore after issue and return on net worth is Rs 611 crore after issue.” 29.61 percent. We believe this issue is reasonably priced and recommend a ‘long-term subscription’ rating,” said Anand Rathi Shares and Stockbroker.
Prior to the IPO, Pyramid Technoplast raised Rs 27.55 crore through four key investors by allocating 16,59,600 equity shares at a price of Rs 166 per share. The Carnelian Structural Transformation Fund, Alchemy Venture Fund, Pluris Fund, and Resonance Opportunity Fund have joined the anchor book.
“We believe the growth of industrial packaging companies in the IBC segment will be strong over the next 5-6 years, Pyramid Technoplast Limited with a strategic presence in the industrial belts in India entirely could benefit from these developments as the company specializes in the production of IBCs,” said SMIFS Research.
They recommended issuance, noting high growth rates, lower interest costs, lower working capital requirements, new capacity and improved utilization, which should lead to income growth of 15-20% over the next 12-18 years. month.
First PNB Investment and Foreign Investment Service is the book that runs the main managers for this matter, while Bigshare Services has been designated as the registrar for this matter. The company will be listed in both the BSE and the NSE, with August 30, 2023, Wednesday, being the expected listing date.
(Disclaimer: The recommendations, suggestions, views and opinions expressed by experts are their own. They do not represent the views of Business Today)
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