Industrial packaging company Pyramid Technoplast continues to receive strong reactions from investors as the initial public offering has been registered more than 8 times with bids for 6.08 crore of equity shares compared to the offering size is 75.6 lakhs, on Tuesday (August 22), the third and last day of the year of prayer.
The part of non-institutional investors was the most registered with 10.54 times, followed by individual investors with 8.61 times. The qualifying institutional buyer (QIB) category has been registered 1.54 times.
The Rs 153 crore public issue was registered 1.61 times on the first day of bidding and 5.84 times on the second day of the bidding process.According to market sources, shares of Pyramid Technoplast currently have a premium of Rs 28, compared with a higher price of Rs 166, on the unlisted market. The gray market is an informal market in which IPO shares can be bought and sold until listing.
Should you bid on the last day?
Analysts mostly have a ‘Register’ rating for the IPO, looking at the company’s diverse customer base along with a comprehensive product portfolio.
According to Prashanth Tapse of Mehta Equities, Pyramid has shown strong financial performance over the past few years despite high inflationary pressures over the past two years. As a result, the company’s diverse product portfolio serving multi-industry segments and strategically located manufacturing units give it a unique advantage to perform well in the long run.
“Even the current market scenario is a bit dreary, which is a concern for conservative investors. Therefore, considering the market mood and full price valuation, we recommend investors to consider cautiously before applying for this stock issue and if investors want to buy this stock. . Risks one should only register with the long-term view,” he said.
The IPO consists of a new issuance of 550,000 shares and an offering (OFS) of 37.2 thousand shares, in which the promoter Credence Financial Consultancy will sell its shares. Funds raised from OFS will be transferred to shareholders selling Credence Financial.
The proceeds from this issuance will be used to pay off a portion of debt, finance working capital needs and other general corporate purposes.
Nearly 30 percent of the offering went to qualified institutional buyers, 20 percent to non-institutional investors, and the remaining 50 percent of the public offering went to investors. retail investment.
Finance
Pyramid recorded good earnings growth last fiscal year, despite pressure on margins due to rising input costs. Profit for the year ended March fiscal year 23 came in at Rs 31.76 crore, up 21.5% year-on-year, with net profit margin expanding 9 basis points year-on-year at 6.62% in the same period.
The company’s revenue for fiscal year 23 at Rs 480 crore increased 20% year-on-year. On the operating front, EBITDA (earnings before interest tax, depreciation and amortization) increased 18.06% year-on-year to Rs 49.8 crore, but margins fell 10 basis points to 10.4 % in fiscal year 2023.
The share allocation is expected to be completed around August 25, and the expected date of listing on the BSE and NSE is around August 30.
PNB Investment Services and First Foreign Capital are the main managers in this regard, while Bigshare Services is the registrar.
Leave a Reply