Pyramid Technoplast is planning an IPO to open on August 18, 2023. Pyramid Technoplast is an Indian industrial packaging company. should i invest Pyramid Technoplast IPO or avoidanceThis article provides details, dates, positive factors, risk factors, Pyramid Technoplast IPO Review.?
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Pyramid Technoplast IPO Details
| IPO start date | August 18, 23 |
| IPO deadline | August 22, 2023 |
| IPO Listing Date | August 30, 23 |
| Kind of problem | Book Built Issue IPO |
| face value | 10 rupees per share |
| IPO price range | Rs.151 to Rs.166 per share |
| lot size | 90 shares |
| Minimum order quantity | 90 shares |
| exhibition place | BSE and NSE |
| total issue size | Rs.15.305 billion |
| Latest issue | Rs.91.3 billion |
| OFS | Rs.617.5 billion |
Pyramid Technoplast IPO Reservation
| Offer of QIB shares | 30% or more of the offer |
| Offer of NII/HNI shares | No more than 20% of the offer |
| retail shares sold | No more than 50% of the offer |
About Pyramid Technoplast Co., Ltd.
The company is an industrial packaging company primarily engaged in the business of manufacturing polymer-based molded products (polymer drums) 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 in India producing IBCs with a capacity of 1,000 liters. IBCs are industrial grade containers designed for bulk handling, transportation and storage of liquids, semi-solids, pastes or solids. Rigid IBCs are called intermediate bulk containers because they are manufactured in a volume range intermediate between standard shipping drums and intermodal tank containers. We also manufacture MS drums made of mild steel (MS) that are used for packaging and transporting chemicals, pesticides and specialty chemicals.
Finance of Pyramid Technoplast Co., Ltd.
Here is the financial situation of the company.
| Fiscal year end/end (amounts in billions) | |||
| detail | 21st year | 22nd year | 23rd year |
|---|---|---|---|
| assets | 153.5 | 183.8 | 225.8 |
| Earnings | 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 |
| Borrowing amount | 51.3 | 64.8 | 55.3 |
subject of the problem
Pyramid Technoplast’s IPO size is Rs 15.3 billion including OFS and new issue.
The amount of OFS will be sent to the selling shareholders, while the new issuance will be used to fully or partially repay and/or advance certain outstanding borrowings utilized by the company to fund the company’s working capital requirements. become.
What about Pyramid Technoplast’s IPO price valuation?
The IPO price range ranges from Rs.151 to Rs.166 per share.
- Taking into account last year’s 2023 EPS of Rs 10.24, the P/E ratio is 16x.
- Taking into account the weighted EPS of Rs 8.8 over the last three years, the PER is 19x.
- Publicly traded peers such as Mold-Tek Packaging have a P/E of 41x (highest) and Time Technoplast has a P/E of 14x (lowest), with an industry average P/E of 26x. Therefore, the 16x to 19x P/E IPO price range is attractive.
Pyramid Technoplast IPO Allocation and Listing Date
| IPO start date | August 18, 23 |
| IPO closes on | August 22, 2023 |
| Basis for allocation | August 25, 23 |
| Initiate refund | August 28, 23 |
| Credit of shares to Demat | August 29, 23 |
| Listing date | August 30, 23 |
| UPI Obligation Verification Deadline Time | August 22, 2023 |
Pyramid Technoplast IPO GMP
No information about GMP was found.
IPO of Pyramid Technoplast – a positive factor for investment
- We are an industrial packaging company with a diverse customer base and a comprehensive product portfolio due to the strategic placement of our manufacturing divisions.
- The company is on track for significant revenue growth from 2021 to 2023.
- The company has consistently improved its profit margins over similar periods.
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Pyramid Technoplast IPO – risks or downsides
- The company’s IPO proceeds include an OFS portion, which the company will not benefit from as it will be paid to the selling shareholders.
- The company proposes an expansion plan. If it goes wrong, it could affect the company’s financial situation.
- The company has an unsecured loan of Rs 250 crore from a lender that can be collected at any time.
- Investors should read the RHP to understand all internal and external risk factors.
Pyramid Technoplast IPO Review – Should You Apply or Not?
You may be wondering if this IPO is good or bad for investing. Should you invest or avoid?
The company is committed to industrial packaging with a diverse product portfolio. Its revenue is increasing year by year. The IPO price is an attractive price.
On the other hand, the OFS portion of the IPO will be sold to the shareholders, so there will be no profit for the company. Investors should read and understand all risk factors associated with this IPO from RHP.
Investors with a high risk appetite can consider investing in such IPOs.
Suresh KP is the founder of Myinvestmentideas. He is his NISM Certified – Investment Advisor and he is a NISM Certified – Research Analyst. He has been analyzing financial markets for the past 20 years. He can be reached at suresh@myinvestmentideas.com.
