Pyramid Technoplast, a manufacturer of polymer-based molded products, debuted in the secondary market on Tuesday, August 29, with shares listing at a premium of around 11 per cent over the issue price.
Pyramid Technoplast shares made a strong entry into the listed space on Tuesday, August 29. The stock of Pyramid Technoplast—traded with the symbol PYRAMID—debuted at Rs 187 on NSE, translating to a premium of Rs 21, or 12.7 per cent, over the upper end of the price band of its IPO, which concluded last week with an overall subscription of 18 times the equity on offer. On BSE, the stock began its journey at Rs 185 apiece, a premium of Rs 19, or 11.4 per cent.
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Pyramid Technoplast is a Gujarat-based manufacturer of polymer-based molded products that provides packaging solutions to businesses operating in areas such as chemicals and pharmaceuticals.
EDITOR’S TAKE
Earlier, Zee Business Managing Editor Anil Singhvi pointed out that though the company has a good financial track record and has experienced promoters, the sector that it caters to has never created wealth for investors. While giving a clear ‘avoid’ call on the IPO, he said the offer was suitable only for investors with a high risk appetite:
Singhvi pointed out the following important points about the company, ahead of the IPO:
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Positive
- The company has experienced promoters
- It has a good financial track record
- The IPO is small with a small price
- Some action possible post-listing
Negative
- The company is very small in size
- Maintaining strong growth on a higher base will be challenging for the company
Pyramid Technoplast IPO
The IPO, a combination of fresh issuance and an offer for sale (OFS), was open for subscription from August 18 to August 22. During the three-day bidding process, the initial share sale received bids for 13.8 crore shares against the 75.6 lakh shares on offer, with strong participation across all categories of investors, according to provisional exchange data.
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Under the Rs 153-crore IPO, potential investors could bid for Pyramid Technoplast shares in the range of Rs 151-166 apiece, in multiples of 90, translating to Rs 13,590-14,940 per lot.
| Category | Reservation | Subscription (No. of times the equity reserved) |
| Qualified institutional buyers (QIBs) | 30% | 9.9 |
| Non-institutional investors (NIIs)/high net-worth individuals | 20% | 32.2 |
| Retail investors | 50% | 14.7 |
| Total | 18.3 | |
| Source: Exchange data | ||
Financials
The company registered a net profit of Rs 31.8 crore for the year ended March 31, 2023, marking an increase of 21.5 per cent compared with the previous year, according to the red herring prospectus (RHP).
Its revenue stood at Rs 480 crore for the financial year 2022-23 as against Rs 400.4 crore for the previous year.
Anchor investors
Ahead of the IPO, Pyramid Technoplast garnered Rs 27.6 crore from anchor investors Carnelian Structural Shift Fund, Alchemie Ventures Fund (Scheme I), Pluris Fund and Resonance Opportunities Fund, according to a statement.
