The public subscription for the initial share sale of Pyramid Technoplast, an industrial packaging company, began on August 18 and will run until August 22. Prior to the IPO, the company garnered Rs 27.55 crore from four anchor investors on August 17.
The IPO, priced between Rs 151 and Rs 166 per share, aims to raise Rs 139.22 crore at the lower price range and Rs 153.05 crore at the upper end. Notably, in the grey market, the company’s shares are trading at Rs 28, reflecting a 17 percent premium over the issue price. The grey market serves as an unofficial platform for trading IPO shares before listing.
Market analysts are offering a positive outlook on the IPO. They mainly advocate a ‘Subscribe’ rating due to the company’s diverse customer base and extensive product portfolio. Anand Rathi suggests a ‘Subscribe – long term’ rating, highlighting that the valuation at the upper price band corresponds to a P/E of 16.21 times FY23 earnings and a return on net worth of 29.61 percent.
Similarly, Profitmart Securities recommends a ‘Subscribe – medium and long term’ stance, citing Pyramid Technoplast’s recent performance and promising outlook.
Investors can bid for a minimum of 90 shares, with retail investors needing a minimum investment of Rs 14,940 per lot (90 shares) and a maximum of Rs 1,94,220 for 13 lots (1,170 shares). The IPO distribution is divided among qualified institutional buyers (30 percent), non-institutional investors (20 percent), and retail investors (50 percent).
The IPO includes a fresh issue of 55 lakh shares and an offer for sale (OFS) of 37.2 lakh shares from the promoter Credence Financial Consultancy. The proceeds will be directed toward debt repayment, working capital requirements, and general corporate purposes.
Financially, Pyramid Technoplast exhibited robust earnings growth in the previous fiscal year, although it faced margin pressure due to rising input costs. Its net profit for FY23 reached Rs 31.76 crore, a 21.5 percent increase from the previous year, with a net profit margin of 6.62 percent. The company’s revenue in FY23 stood at Rs 480 crore, a 20 percent rise from the previous year.
The IPO allotment is expected to be finalized around August 25, with a tentative listing date on the BSE and NSE around August 30. The issue is being managed by PNB Investment Services and First Overseas Capital, with Bigshare Services acting as the registrar.
