New Delhi :
Pyramid Technoplast, a significant player in the plastic drum manufacturing sector, is gearing up to launch its Initial Public Offering (IPO).
The IPO is scheduled for subscription starting from August 18.
This marks the fourth IPO this month, following the footsteps of SBFC Finance, Concord Biotech, and TVS Supply Chain Solutions.
While Pyramid Technoplast’s IPO will feature the issuance of new shares, the promoters will also partake by offering shares through the Offer for Sale (OFS) avenue.
Gray Market Quiet
Despite the absence of gray market activity surrounding Pyramid Technoplast’s shares, market experts advocate focusing on the company’s financials and fundamentals as the basis for investment decisions. The gray market’s signals might not hold as much weight as the core attributes of the business.
Pyramid Technoplast IPO Details
The Pyramid Technoplast IPO, valued at Rs 153.05 crore, will open for subscription from August 18 to August 22.
Investors will have the opportunity to invest within the price range of Rs 151 to Rs 166, with a minimum lot size of 90 shares.
The issue allocation is divided as follows: 30% for Qualified Institutional Investors (QIBs), 20% for Non-Institutional Investors, and 50% for retail investors.
After the successful IPO, share allotment will be finalized by August 25. The Issue’s registrar is BigShare Services. On August 30, the shares are slated to debut on both BSE and NSE.
Insight into Issue Breakdown
The IPO will witness the issuance of 55 lakh new equity shares. Additionally, 37.20 lakh shares with a face value of Rs 10 will be sold through the Offer for Sale (OFS) route.
The offer for sale will be conducted by the company’s promoter, Credence Financial Consultancy LLP.
The funds amassed from the issuance of fresh shares will see Rs 40 crore allocated towards debt repayment and Rs 40.2 crore earmarked for working capital requirements, along with addressing general corporate needs.
Pyramid Technoplast is a manufacturer of plastic drums extensively employed by chemical and pharmaceutical enterprises.
The company embarked on commercial operations in 1998 and has since established six manufacturing facilities – four in Bharuch, Gujarat, and two in Silvassa, Dadra and Nagar Haveli.
The company is currently erecting another manufacturing plant in Bharuch.
Over the past three financial years, Pyramid Technoplast’s financial performance has been on an upward trajectory.
In FY 2021, it registered a net profit of Rs 16.99 crore, which surged to Rs 26.15 crore in FY 2022, and subsequently to Rs 31.76 crore in FY 2023.