Pyramid Technoplast IPO subscribed 5.8x on Day 2. Check GMP and other details

The initial public offer (IPO) of Pyramid Technoplast received good response from investors with the subscription rate at 5.8x on Day 2.

The non-institutional investors portion was subscribed the most at 6.73x, followed by retail part at 6.52x. The category reserved for qualified institutional buyers (QIB) was subscribed 1.49 times.

According to market sources, the company's grey market premium (GMP) is around Rs 26, against an upper price band of Rs 166.


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

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 IPO comprises a fresh issue of 55 lakh shares and an offer for sale of 37.2 lakh shares. Under the OFS, promoter Credence Financial Consultancy will sell 37.2 lakh shares.

About 30% of the offer is reserved for qualified institutional buyers, 20% for non-institutional investors, and 50% of the offer is set aside for retail investors.

The company aims to raise anywhere between Rs 139-Rs 153 crore through the IPO and the post implied market cap is likely to be around Rs 611 crore.

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

The share allotment will likely be finalised on or about August 25, and the tentative date for listing is around August 30.

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