Pyramid Technoplast is coming up with an IPO that would open for subscription on August 18, 2023. Pyramid Technoplast is an industrial packaging company in India. Should you invest in Pyramid Technoplast IPO or avoid? In this article we would provide details, dates, positive factors, risk factors and do Pyramid Technoplast IPO review.
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Pyramid Technoplast IPO Details
| IPO Opening Date | 18-Aug-23 |
| IPO Closing Date | 22-Aug-23 |
| IPO Listing Date | 30-Aug-23 |
| Issue Type | Book Built Issue IPO |
| Face Value | ₹ 10 per equity share |
| IPO Price band | ₹ 151 to ₹ 166 per equity share |
| Lot Size | 90 Shares |
| Min Order Quantity | 90 Shares |
| Listing at | BSE and NSE |
| Total Issue Size | ₹. 153.05 Crores |
| Fresh issue | ₹. 91.3 Crores |
| OFS | ₹. 61.75 Crores |
Pyramid Technoplast IPO Reservation
| QIB shares offered | Not less than 30% of the offer |
| NII/HNI shares offered | Not more than 20% of the offer |
| Retail shares offered | Not more than 50% of the offer |
About Pyramid Technoplast Ltd
They are an industrial packaging company engaged in the business of manufacturing polymer based molded products (Polymer Drums) mainly used by chemical, agrochemical, speciality chemical and pharmaceutical companies for their packaging requirements.
They are one of the leading manufacturers of rigid Intermediate Bulk Containers in India manufacturing 1,000 litre capacity IBC. IBCs are industrial-grade containers engineered for the mass handling, transport, and storage of liquids, semi-solids, pastes, or solids. rigid IBCs are manufactured across a volume range which is in between that of standard shipping drums and intermodal tank containers, hence the title intermediate bulk container. They also manufacture MS Drums made of mild steel (MS) used in the packaging and transport of chemicals, agrochemicals and speciality chemicals.
Pyramid Technoplast Ltd Financials
Here are the financials of the company.
| Financial Year ending / Period ending (Amt in Crores) | |||
| Particulars | FY21 | FY22 | FY23 |
|---|---|---|---|
| Assets | 153.5 | 183.8 | 225.8 |
| Revenue | 316.2 | 402.6 | 482.0 |
| Profit After Tax | 17.0 | 26.2 | 31.8 |
| Profit % | 5.37% | 6.49% | 6.59% |
| Net Worth | 48.9 | 75.2 | 107.3 |
| Reserves and Surplus | 44.9 | 71.3 | 76.0 |
| Total Borrowing | 51.3 | 64.8 | 55.3 |
Objects of the Issue
Pyramid Technoplast IPO size is ₹ 153 Crores that contains OFS and fresh issue.
While OFS amount goes to selling share holders, the fresh issue would be used for repayment and/or pre-payment, in full or part, of certain outstanding borrowings availed by the company, funding working capital requirements of the company
How is Pyramid Technoplast IPO Price Valuation?
Its IPO price band is ₹ 151 to 166 per share
- If we consider last year FY23 EPS of ₹ 10.24, P/E ratio works out to be 16x
- If we consider Last 3 Years Weighted EPS of ₹ 8.8, P/E ratio works out to be 19x
- The listed peers like Mold-Tek Packaging trading at P/E 41x (Highest) and Time Technoplast is trading at P/E of 14x (Lowest) and industry average P/E is 26x. Hence, the IPO Price band at P/E of 16x to 19x is attractively priced.
Pyramid Technoplast IPO Allotment & Listing Dates
| IPO Opens on | 18-Aug-23 |
| IPO Closes on | 22-Aug-23 |
| Basis of Allotment | 25-Aug-23 |
| Initiation of Refunds | 28-Aug-23 |
| Credit of Shares to Demat | 29-Aug-23 |
| Listing Date | 30-Aug-23 |
| Cut-off time for UPI mandate confirmation | 22-Aug-23 |
Pyramid technoplast IPO GMP
We could not see any information about GMP.
Pyramid Technoplast IPO – Positive Factors to invest
- Company is engaged in industrial packaging company with diverse customer base, comprehensive product portfolio with strategic location of its manufacturing units.
- Company has strong revenue growth during FY21 to FY23.
- Company has consistent and improved margins during similar period.
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Pyramid Technoplast IPO – Risk or Negative Factors
- Company IPO proceeds has OFS portion where company would not get benefited as it goes to selling share holders.
- Company proposes for expansion plan. If they are unable to successful do it, it can impact company financial condition.
- Company has unsecured loan of ₹ 205 Lakhs from its lenders that can be recalled any time.
- Investors should read RHP for complete internal and external risk factors.
Pyramid Technoplast IPO Review – Should you Apply or not?
You might be wondering whether this IPO is good or bad for investment. Should you invest or avoid?
Company is engaged in industrial packaging with diverse product portfolio. Its revenues are growing year on year. Its IPO price is attractively priced.
On other side, the OFS portion of IPO goes to selling share holders and company would not benefit anything. Investors should read and understand all risk factors associate with this IPO from the RHP.
Investors with high risk appetite can consider investing in such IPOs.
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