Gujarat's Pyramid Technoplast Witnesses Strong Investor Interest, Subscribed 5.84 Times on Second Day of IPO Bidding

21 Aug 2023 , 09:46 PM

On August 21, the second day of bidding, Pyramid Technoplast, headquartered in Gujarat, continued to attract significant investor attention as its inaugural public issue garnered a robust response, being oversubscribed by 5.84 times. The bids received for 4.41 crore equity shares exceeded the offer size of 75.6 lakhs.

Retail investors and high net-worth individuals took the lead in the bidding process, with subscription rates of 6.52 times and 6.73 times, respectively, for the portions allocated to them—50% and 20% of the total IPO size.

Qualified institutional buyers demonstrated a subscription rate of 1.49 times, which corresponds to 30% of the offer size earmarked for them.

The public issue, valued at Rs 153 crore, had achieved a subscription rate of 1.61 times on its debut bidding day, August 18.

Pyramid Technoplast, engaged in manufacturing polymer-based molded products, has plans to raise Rs 91.3 crore from the fresh issue, with the remaining Rs 61.75 crore stemming from the offer-for-sale by the promoter. The pricing range for the offer is set at Rs 151-166 per share, and the bidding process will conclude on August 22.

The funds from the fresh issue will primarily be allocated to debt repayment and fulfilling working capital needs, while the remaining balance will be used for general corporate purposes.

The company specializes in producing polymer-based bulk packaging drums and intermediate bulk containers (IBC), catering mainly to the chemical, agrochemical, specialty chemical, and pharmaceutical sectors. Additionally, it manufactures MS Drums made of mild steel (MS), utilized for packaging and transportation purposes.