Pyramid Technoplast lists at 13% premium to IPO price

Pyramid Technoplast IPO which was open for subscription between August 18-22, was subscribed 14.72 times in the retail category and 32.24 times in the Non-Institutional Investors (NII) category

Polymer-based molded products maker Pyramid Technoplast listed at a 13 percent premium to its issue price of Rs 166, on August 29. The stock is listed at Rs 187 on the NSE and Rs 185 on BSE.

The Rs 153-crore issue which was open for subscription between August 18-22, was subscribed 14.72 times in the retail category and 32.24 times in the Non-Institutional Investors (NII) category. The Qualified Institutional Buyers’ (QIB) portion was booked 9.94 times.

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The company had mopped up Rs 27.55 crore through the anchor book on August 17, a day before the issue opened. Ace investor Vikas Khemani-led Carnelian Structural Shift Fund, and Alchemie Ventures Fund-Scheme I were among the four anchor investors.

The Gujarat-based manufacturer of polymer-based molded products (polymer drums) mainly used by chemical, agrochemical, specialty chemical and pharmaceutical companies for their packaging requirements, presently, has six strategically situated manufacturing units. The seventh manufacturing unit is under construction at Bharuch, Gujarat, adjacent to the existing six units.

Its products are marketed and sold under the brand name “Pyramid”.

The total installed capacity of its polymer drum manufacturing units is

20,612 MTPA. The total installed capacity of their IBC (intermediate bulk container) manufacturing unit is 12,820 MTPA and the total installed capacity of their MS (mild steel) drums unit is 6,200 MTPA.

According to analysts at SBI Securities, Pyramid Technoplast's valuation at price-to-earnings multiple of 19.2x of its FY23 earnings is fair when when compared with its close peers. "Investors should have a long-term horizon," they said.

Time Technoplast is available at a P/E of 13x, Mold-Tek Packaging at a P/E of 40.2x and TPL Plastech at 19.7x.

In FY23, Pyramid Technoplast recorded a net profit of Rs 31.76 crore, up 21.5 percent over a year-ago period, with a net profit margin expansion of 9 basis points at 6.62 percent.

The company's revenue for FY23 was Rs 480 crore, growing 20 percent from the previous year.