Pyramid Technoplast IPO subscribed 18x on last day

• Pyramid Technoplast subscribed 18x on the first day of the offer.
• The non-institutional investors portion was subscribed 32 times.
• The net proceeds will go towards loans, working capital needs & corporate purposes.

The initial public offer (IPO) of Mumbai based Pyramid Technoplast was subscribed 18.29 times over the shares on offer on the last day of the issue.


The issue received very good interest from non-institutional investors, and this portion was subscribed Non institutional investors portion was subscribed 32 times. Qualified institutional buyers (QIB) portion was subscribed almost ten times and retail portion was subscribed 14.7 times.

The price band for the offer has been fixed at ₹151-₹166 per equity share.

The company raised ₹153 crore via the share sale with a fresh issue to the tune of ₹91 crore and an offer for sale (OFS) of ₹61.7 crore. The net proceeds from the fresh issue will be used to pay outstanding borrowings, working capital needs and general corporate purposes.

It had raised ₹27.5 crore from anchor investors like Alchemie Ventures Fund, Carnelian Structural Shift Fund, Pluris Fund, and the Resonance Opportunities Fund.

Source: BSE

About the company

The company manufactures polymer-based molded products which are used for packaging of agrochemical, chemical, specialty chemical and pharmaceutical products. It has 5 manufacturing units.

Its revenue from operations has been growing at over 20% for the last two fiscal years. Its net profit grew 22% in FY23 and 53% in FY22.

Some of its listed industry peers are Time Technoplast, TPL Plastech and Mold-Tek Packaging.

The company said that the environmental impact of polymer products is damaging, automation may affect its competitiveness and economic, social and political uncertainty can affect its operations.

“Any reduction in the demand for our products could lead to underutilization of our manufacturing capacity. We may also face surplus production of a particular product due to various reasons including inaccurate forecasting of customer requirements, which could adversely affect our business, results of operations, financial condition and cash flows,” the company said in its RHP.

The company’s growth prospects and financial performance depends on its ability to obtain new customers and retain existing clients. However, it said that there can be no assurance that we will be able to procure new customers or retain our existing customers successfully. If they’re unable to do so, their business and operations might be affected.