Pyramid Technoplast Ltd. proposes a Rs. 153.05 crore IPO on August 18 to spur growth

Mumbai : Pyramid Technoplast Limited, an industrial packaging firm noted for its competence in creating polymer-based moulded goods, intends to earn up to Rs. 153.05 crore via a public offering to support its expansion goals. The proceeds from the issuance will be used to repay existing borrowings, support working capital requirements, and for general corporate purposes. The subscription period for the public issue will begin on August 18 and end on August 22, 2023. The shares of the firm will be listed on the BSE and NSE. PNB Investment Services Limited and First Overseas Capital Limited are the Offer’s Book Running Lead Managers. Bigshare Services Private Limited is the Offer’s Registrar.

The initial public offering of up to 92.20 lakh equity shares with a face value of Rs. 10 each consists of a new issuance of up to 55 lakh equity shares and a sale of up to 37.20 lakh equity shares by the promoter group – Credence Financial Consultancy LLP. For the public offering, the company has set a price range of Rs. 151-166 per equity share. The business intends to raise up to Rs. 153.05 crore via the public offering at a price range of Rs. 166 per share. The application requires a minimum lot size of 90 shares or multiples thereof. The retail investor and HNI quotas for the IPO are set at not less than 50% and 20% of the issue, respectively, while the QIB quota is set at no less than 30% of the issue.

The offer comprises a new issue worth Rs. 91.30 crore and an offer for sale by the Selling Shareholder worth Rs. 61.75 crore at the upper band price through the Offer.

Mr. Bijaykumar Agarwal, Chairman and Managing Director of Pyramid Technoplast Limited states, “The Offer marks a significant milestone in our ongoing journey. Our goal is to deliver high-quality products to our valued customers, drawing upon our wealth of experience. With India emerging as a prominent manufacturing hub for the chemical and pharmaceutical industry, we anticipate continuous increase in demand for our packaging solutions. The capital generated from the Offer will play a pivotal role in driving our growth and enabling us to increase the market share.”

Incorporated in 1997, Pyramid Technoplast Limited manufactures polymer-based molded products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemical, and pharmaceutical companies for their packaging requirements. Company has six manufacturing units out of which four are situated in Bharuch, GIDC, Gujarat, and two are situated at Silvassa, UT of Dadra and Nagar Haveli. The total installed capacity of their Polymer Drum manufacturing units is 20,612 MTPA, the total installed capacity of the IBC manufacturing unit is 12,820 MTPA and the total installed capacity of the MS Drums unit is 6,200 MTPA. The company is in the process of constructing its seventh manufacturing unit which will also be situated in Bharuch, GIDC, Gujarat. The company has obtained UN certification outlined by United Nations Recommendation for IBC and MS Drums to meet safety levels.

The financial performance of the company has exhibited considerable progress over the years, demonstrating growth and stability. For FY22-23 company reported revenue of Rs. 482.03 crore and net Profit of Rs. 31.73 crore. As on March 2023, Net worth of the company stands at Rs. 107.25 crore, Total Assets at Rs. 225.78 crore and Reserves & Surplus at Rs. 75.97 crore.

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