Pyramid Technoplast Limited debuts at a premium of 12% at Rs 187 per share!

Pyramid Technoplast Limited, a prominent manufacturer of polymer-based moulded products, primarily Polymer Drums used in packaging needs in various industries, is listed with a premium of 11.44% at Rs 185 per share on BSE. On the NSE, the stock debuted at Rs 187, indicating an increase of 12.67% compared to its initial public offering price of Rs 166 per share.

Currently, while writing this article the stock is trading at Rs 175.75 on the BSE. Its intraday highs and lows are Rs 188 and Rs 175.75, respectively. The current market capitalization of the company is Rs 646.5 crore.

Incorporated in 1997, Pyramid Technoplast Limited manufactures polymer-based moulded products, primarily Polymer Drums, mainly used by chemical, agrochemical, speciality chemical, and pharmaceutical companies to meet their packaging requirements.

The company produces polymer-based bulk packaging drums and Intermediate Bulk Containers (IBCs), as well as MS Drums for packaging used in the transportation and packaging of chemicals, agrochemicals, and speciality chemicals.

It currently operates over six manufacturing units, four of which are in Bharuch, GIDC, and Gujarat, and the remaining two are situated in Silvassa, UT of Dadra, and Nagar Haveli.

Let’s recapitulate the subscription history of the company. 

On the final day of the IPO window August 22, 2023, the IPO witnessed a subscription rate of 18.29 times. The public issue received an overwhelming response, with the retail category being subscribed 14.72 times, the QIB category achieving a subscription rate of 9.94 times, and the NII category reaching a subscription rate of 32.24 times.

The company had attracted Rs 27.55 crore from various anchor investors. The company has allocated 16.60 lakh equity shares at Rs 27.55 per share to anchor investors.

The price range for the IPO was set between Rs 151 and Rs 166, with a face value of Rs 10 per share and a lot size of 90 shares. The total size of the company’s IPO was Rs 153.05 crore. The final share issue price of the company was fixed at Rs 166.

Following is the financial performance of the company:

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Considering the current market conditions, investors who applied for listing gains have already earned 11% to 12% on the listing day alone. While this gain is not very impressive compared to other IPOs, investors can choose to book the profit it has generated. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which may prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.