Polymer-based moulded products manufacturer Pyramid Technoplast is gearing up for its initial public offering (IPO), scheduled to commence on August 18. This move follows the footsteps of SBFC Finance, Concord Biotech, and TVS Supply Chain Solutions, making Pyramid Technoplast IPO the fourth public issue this month.
Key Highlights of the Upcoming IPO – Pyramid Technoplast
- Pyramid Technoplast’s IPO is to open on August 18 with a price range of Rs 151-166 per share.
- The offer will close on August 22, while the QIB anchor book will open on August 17.
- The company aims to raise Rs 153.05 crore through the IPO at the upper price band.
- Investors can bid for a minimum of 90 equity shares, and retail investors can apply for a minimum of Rs 14,940.
- Proceeds from the IPO will be used for debt repayment, working capital, and general corporate purposes.
- The IPO allocates 50% for QIBs, 20% for high net-worth individuals, and 50% for retail investors.
The Objective of the Pyramid Technoplast IPO
- Capital Infusion for Expansion: The primary objective of Pyramid Technoplast’s IPO is to raise funds for expanding its business operations. This could potentially lead to increased production capacity and market presence.
- Debt Repayment and Working Capital: Another key aim of the IPO is to utilise the raised capital for debt repayment and working capital requirements. This objective could attract investors looking for stable returns over time.
- Enhanced Market Visibility: For investors and traders, this could provide increased exposure to the company’s performance metrics, aiding in better decision-making and potential profit opportunities.
Details of the Upcoming IPO
The Pyramid Technoplast IPO comprises a total of 92.2 lakh equity shares. Among these, the company plans to issue 55 lakh fresh shares, while the promoter Credence Financial Consultancy LLP aims to sell 37.2 lakh shares through an offer-for-sale (OFS). The company’s target is to raise about Rs 153.05 crore from this public issue, assuming the upper price band is reached.
Pyramid Technoplast IPO: Investment and Bidding
Investors can participate in the IPO by bidding for a minimum of 90 equity shares, followed by multiples of 90 shares. Retail investors have the option to apply for a minimum of Rs 14,940 for one lot (90 shares), with a maximum investment cap of Rs 1,94,220 (1,170 shares).
Important Dates and Allocations of the Upcoming IPO
The Pyramid Technoplast IPO will conclude on August 22, while the QIB anchor book will open for subscription on August 17, exclusively for qualified institutional buyers.
The company has reserved 50% of the issue size for QIBs, 20% for high-net-worth individuals, and the remaining 50% for retail investors.
The Utilisation of Funds and Company Profile
The funds generated from the fresh issue of Pyramid Technoplast IPO will be utilised for various purposes, including debt repayment (Rs 40 crore), working capital requirements (Rs 40.2 crore), and general corporate needs.
Pyramid Technoplast, a Gujarat-based manufacturer of polymer-based moulded products mainly utilised for packaging in industries like chemicals, agrochemicals, speciality chemicals, and pharmaceuticals, has six operational manufacturing units. The seventh unit is currently under construction in Bharuch, Gujarat.
The company’s polymer drum manufacturing units have a collective installed capacity of 20,612 metric tonnes per annum (MTPA). The IBC (Intermediate Bulk Container) manufacturing unit has a capacity of 12,820 MTPA, and the MS Drums unit has a capacity of 6,200 MTPA.
Pyramid Technoplast IPO Allotment and Listing
The finalisation of the IPO share allotment basis is anticipated to be completed by August 25. Eligible investors can expect to have the shares in their demat accounts by August 29. Refunds for unsuccessful investors will be processed by August 28. Pyramid Technoplast’s shares are set to be listed on both the BSE and NSE on August 30.
Merchant Bankers and Registrar
PNB Investment Services and First Overseas Capital are the merchant bankers overseeing the IPO process. Bigshare Services is the registrar managing the administrative aspects of the IPO.
What Opportunities Does It Bring for Investors?
The upcoming Pyramid Technoplast IPO, planned to start on August 18 with a share price range of Rs 151-166, offers a chance for potential investors to explore. Closing on August 22, the IPO subscription window will open briefly for QIBs on August 17.
For interested investors, this could be an occasion to evaluate the company’s financial track record and future growth possibilities. The funds raised through the IPO could potentially contribute to the company’s future ventures. With allocation considerations for various investor segments, as a smart stock market investor, you should consider your financial goals and risk tolerance before making any investment decisions.
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.