Pyramid Technoplast's initial public offer has garnered a positive response from investors on the first day of bidding, August 18, after it subscribed 1.61 times, getting bids at 1.21 crore equity shares against the IPO size of 75.60 lakh shares.
Retail investors, having a 50 percent quota in the issue, were ahead among investors, in the bidding, buying 1.90 times the reserved portion, while the 20 percent portion set aside for high networth individuals (non-institutional investors) was subscribed 1.06 times.
Qualified institutional buyers (QIB) have bought 1.27 times the alloted quota, which is 30 percent in the Pyramid Technoplast IPO.
The polymer-based molded products maker has raised Rs 27.55 crore via anchor book on August 17, a day before the issue opening. Hence, consequently, the number of shares in the IPO reduced to 75.6 lakh shares, from 92.2 lakh shares.
Only four investors participated in the company's public issue, which were Carnelian Structural Shift Fund, Pluris Fund, Resonance Opportunities Fund, and Alchemie Ventures Fund-Scheme I.
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They bought 16.59 lakh equity shares in the IPO via anchor book including ace investor Vikas Khemani-owned Carnelian Asset Advisors, which through its Carnelian Structural Shift Fund picked shares worth Rs 12.55 crore.
The Gujarat-based polymer drums maker, which serves several industries' for their packaging requirements, intends to mop up Rs 153.05 crore via the public issue. The offer closes on August 22.
The IPO comprises a fresh issue of Rs 91.3 crore worth shares, and an offer for sale (OFS) of Rs 61.75 crore by the promoter Credence Financial Consultancy LLP.
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Reducing debt
Pyramid Technoplast will utilise its fresh issue proceeds mainly for repaying debt amounting to Rs 40 crore and working capital requirement of Rs 40.21 crore.
The utilisation of fresh issue money by the polymer-based bulk packaging drums and intermediate bulk containers (IBC) manufacturer will ultimately result into a significant reduction in its borrowings, which were at Rs 55.34 crore at the end of March FY23.
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The company also makes MS drums used in the packaging and transport of chemicals, agrochemicals, and specialty chemicals.
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