Pyramid Technoplast IPO – Details and Review

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 Rs 10 per equity share
IPO Price band Rs 151 to Rs 166 per equity share
Lot Size 90 Shares
Min Order Quantity 90 Shares
Listing at BSE and NSE
Total Issue Size Rs. 153.05 Crores
    Fresh issue     Rs. 91.3 Crores
    OFS     Rs. 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 Rs 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 Rs 151 to 166 per share

  • If we consider last year FY23 EPS of Rs 10.24, P/E ratio works out to be 16x
  • If we consider Last 3 Years Weighted EPS of Rs 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.

Also Read: Top Stocks as per ChatGPT for investment

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 Rs 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.

Suresh KP

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