Pyramid Technoplast’s Initial Public Offering (IPO) has received a good response from investors with a registration rate of 3.59x so far on Day 2.
The retail section is most subscribed at 4.20x, followed by non-institutional investors at 3.5x. The qualified institutional buyer (QIB) category has been registered 1.3 times.
According to market sources, the company’s gray market premium (GMP) is around Rs 26, compared to a higher price of Rs 166.
Most analysts advise investors to sign up for the issue due to the company’s diverse customer base along with its comprehensive product portfolio.
Pyramid Technoplast is an industrial packaging company engaged in the business of manufacturing molded products from polymers (polymer drums) mainly used by chemicals, agrochemicals, especially
chemical and pharmaceutical companies for their packaging requirements.
The IPO includes a new issuance of 550,000 shares and an offering of 37.2 thousand shares. According to OFS, the company promoting Credence Financial Consulting will sell 37.2 thousand shares.
Approximately 30% of the incentive is available to qualified institutional buyers, 20% to non-institutional investors, and 50% of the incentive is available to retail investors.
The company aims to raise anywhere between Rs 139 and Rs 153 crore through the IPO and the implied post-market capitalization could be around Rs 611 crore.
Proceeds from the new issue will be partially used to repay debt, finance working capital requirements and other general corporate purposes.
For the year ended March 2023, the company’s operating revenue reached Rs 480 billion, while net profit was Rs 31.76 billion.
The stake allocation is likely to be completed on or around August 25, and the listing date is expected to be around August 30.
PNB Investment Services and First Overseas Capital are the main bookkeepers while Bigshare Services is the registrar.