Pyramid Technoplast shares list at 13% premium over IPO price

Shares of Pyramid Technoplast got listed at a premium of 12.65% at Rs 187 on the NSE in Tuesday's trade over its IPO price of Rs 166 apiece. Meanwhile, on BSE, it debuted at a premium of 11.45% at Rs 185.

Ahead of the listing, the company's shares commanded a premium of Rs 20 in the unlisted market.

The IPO of Pyramid Technoplast was subscribed 18 times at close. The non-institutional investors' portion was subscribed the most at 32.24x, followed by retail at 14.72x. The category reserved for qualified institutional buyers (QIB) was subscribed nearly 10 times.

Pyramid Technoplast is an industrial packaging company engaged in the business of manufacturing polymer-based molded products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemical and pharmaceutical companies for their packaging requirements.

The company is one of the leading manufacturers of rigid Intermediate Bulk Containers (IBC) in India manufacturing 1,000 litre-capacity IBC.

It also makes MS drums made of mild steel used in the packaging and transport of chemicals, agrochemicals and specialty chemicals.

The IPO comprised a fresh issue of 55 lakh shares and an offer for sale of 37.2 lakh shares. The company aims to raise anywhere between Rs 139-153 crore through the IPO and the post-implied market cap is likely to be around Rs 611 crore.

Most analysts had advised investors to subscribe to the issue given the company's diversified customer base along with the comprehensive product portfolio.

Net proceeds from the fresh issue will be used towards debt repayment in part, funding working capital requirements, and other general corporate purposes.

For the year ended March 2023, the company's revenue from operations stood at Rs 480 crore, while net profit was at Rs 31.76 crore.

PNB Investment Services and First Overseas Capital were the book-running lead managers while Bigshare Services was the registrar.