Pyramid Technoplast's IPO Sees Strong Day 1 Response with 94% Subscription Rate

18 Aug 2023 , 03:09 PM

Pyramid Technoplast’s debut in the stock market has elicited a favorable response from investors during its initial public offering (IPO) on August 18. The IPO garnered a subscription of 94%, with bids reaching 71.06 lakh equity shares out of the total offering of 75.60 lakh shares by 3.05 PM. Click here to subscribe the IPO.

Among the various investor categories, retail investors, who were allotted a 50% share in the IPO, displayed strong interest by bidding 1.37 times the reserved portion. On the other hand, the portion reserved for high net worth individuals (non-institutional investors), constituting 20%, witnessed a subscription of 39%.

Qualified institutional buyers (QIB) secured 5% of their allocated shares, which accounts for 30% of the Pyramid Technoplast IPO.

Ahead of the IPO launch, the company garnered Rs 27.55 crore through an anchor book on August 17. As a result, the number of shares available in the IPO was reduced from 92.2 lakh shares to 75.6 lakh shares.

Participation in the public issue was limited to four investors: Carnelian Structural Shift Fund, Pluris Fund, Resonance Opportunities Fund, and Alchemie Ventures Fund-Scheme I. These investors collectively acquired 16.59 lakh equity shares through the anchor book. Among them, Carnelian Asset Advisors, owned by renowned investor Vikas Khemani, purchased shares worth Rs 12.55 crore.

Pyramid Technoplast, a manufacturer of polymer-based molded products used in bulk packaging drums and intermediate bulk containers (IBC), operates from Gujarat and caters to diverse industries’ packaging needs. The company aims to raise Rs 153.05 crore from the public offering, which is set to conclude on August 22.

The funds raised from the fresh issue will primarily be allocated to repay a debt of Rs 40 crore and fulfill a working capital requirement of Rs 40.21 crore. This strategic utilization of the IPO proceeds will lead to a significant reduction in the company’s borrowings, which stood at Rs 55.34 crore at the close of the fiscal year ending March FY23.