Pyramid Technoplast Limited IPO

Pyramid Technoplast Limited IPO

Pyramid Technoplast’s IPO aims to raise INR 153.05 crores. The IPO has two segments- fresh issue worth INR 91.30 crores and offer for sale worth INR 61.75 crores.  The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings and to meet future working capital requirements. 

Pyramid Technoplast Limited IPO  – Important Details

Pyramid Technoplast IPO Date 18th August 2023 to 22nd August 2023
Pyramid Technoplast IPO Listing Date 29th August 2023
Pyramid Technoplast IPO Price INR 151-166 per share
Pyramid Technoplast IPO Lot Size 90 shares
Pyramid Technoplast IPO Total Issue Size Approx 153.05 crores
Pyramid Technoplast IPO Basis of Allotment 25th August 2023
Pyramid Technoplast IPO Initiation of Refunds 28th August 2023
Pyramid Technoplast IPO Credit of Shares to Demat 29th August 2023
Pyramid Technoplast IPO Issue Type Book Built Issue IPO
Pyramid Technoplast IPO Listing At BSE, NSE

Pyramid Technoplast Limited IPO  – Company Profile

The company is an industrial packaging company engaged in the business of manufacturing polymer based molded products mainly used in chemical, agrochemical, speciality chemical and pharmaceutical companies for their packaging requirements. 

They offer complete bulk industrial packaging solutions to their clients since the company manufactures both polymer based bulk packaging drums and IBC, as well as MS Drums for packaging.

The company started commercial production in 1998 with one unit. Presently, the company operates with six manufacturing units. 

The promoters of the company Mr.Bijaykumar Agarwal and Jaiprakash Agarwal have a cumulative experience of more than 4 decades in this industry.  

Pyramid Technoplast Limited IPO – Fundamental Analysis

Revenue Growth:

Pyramid Technoplast has consistently grown its revenue from ₹31,350.19 lakhs in 2021 to ₹48,002.51 lakhs in 2023, indicating a positive trend.

Profitability:

The company’s profitability has been on an upward trajectory, with Profit and Loss After Tax increasing from ₹1,699.24 lakhs in 2021 to ₹3,176.07 lakhs in 2023.

Return on Net Worth (RoNW):

While RoNW remains healthy, it has slightly declined from 34.79% in 2021 to 29.61% in 2023.

Earnings Per Share (EPS):

Diluted EPS has shown a steady increase, reaching ₹10.24 in 2023.

Net Asset Value (NAV) per Equity Share:

NAV per Equity Share has grown consistently, reaching ₹34.28 in 2023.

Asset and Liability Management:

The company’s Total Assets have steadily increased from ₹15,345.55 lakhs in 2021 to ₹22,578.14 lakhs in 2023, indicating a robust asset base.

Summary:

Pyramid Technoplast demonstrates strong revenue growth, improving profitability, and a healthy RoNW. However, investors should carefully assess the financials alongside IPO pricing and market conditions before making investment decisions. Consulting with financial experts is advisable.

Pyramid Technoplast Limited IPO  Financial Information

Particular As at 31 March 2021 As at 31 March 2022 As at 31 March 2023
Revenue (₹ in lakhs) 31,350.19 40,041.57 48,002.51
Equity (₹ in lakhs) 4,884.60 7,520.36 10,725.02
Expenses (₹ in lakhs) 29,329.75 36,748.37 43,917.76
Profit and Loss After Tax (₹ in lakhs) 1,699.24 2,614.61 3,176.07
RoNW (%) 34.79 34.77 29.61
Diluted EPS only (₹) 5.41 8.43 10.24
NAV per Equity Share (₹) NA NA 34.28
Total Assets (in lakhs) 15,345.55 18,375.61 22,578.14
Total Liabilities (in lakhs) 10,460.95 10,855.25 11,853.12

Pyramid Technoplast Limited IPO  Peer Comparison

Pyramid Technoplast Limited exhibits a total income of ₹48,202.74 lakhs with a 29.61% RoNW. In contrast, Time Technoplast Limited, TPL Plastech Limited, and Mold-Tek Packaging Limited show higher total incomes but lower RoNW percentages, indicating Pyramid’s competitive position.

Company Total Income (₹ in lakhs) Face Value per Equity Share (₹) P/E EPS (Basic) (₹) EPS (Diluted) (₹) RoNW (%) NAV per Equity Share (Basic) (₹)
Pyramid Technoplast Limited 48,202.74 10 NA 10.24 10.24 29.61% 34.28
Time Technoplast Limited 4,29,319.00 1 14.16 9.69 9.64 9.61% 102.92
TPL Plastech Limited 27,184.24 2 20.50 2.06 2.06 13.89% 14.79
Mold-Tek Packaging Limited 73,130.11 5 41.10 24.40 24.37 14.40% 168.46

Pyramid Technoplast Limited IPO Objective

Pyramid Technoplast Limited’s IPO targets growth, utilizing funds to repay INR 40 crores of debt, cover working capital requirements, and support general corporate initiatives, including tech advancement and business expansion.

  1. Repayment or pre-payment of certain secured borrowing: The company had entered into various financing arrangements which includes working capital facilities, term loans, vehicle loans and unsecured loans. Out of the said arrangement, INR 93.27 crores is outstanding as on 31st July 2023 and the company intends to use the raised funds to the extent of INR 40 crores to repay the borrowing.
  2. Funding working-capital requirement: As the business of the company is working capital intensive and they fund a majority of their working capital requirements in the ordinary course of business from banks, financial institutions and  internal accruals.
  3. General corporate purpose: The company plans to deploy the balance funds towards general corporate purpose which is not limited to meeting expenses incurred in ordinary course of business such as strategic initiatives including advancement of information technology, meeting future branch and business expansion,etc.

Pyramid Technoplast Limited IPO Risks And Challenges

Pyramid Technoplast Limited’s IPO faces manufacturing disruptions risk in Gujarat and Dadra & Nagar Haveli. Additionally, it relies heavily on polymer drums and IBC products, contributing to 83% of its revenue, presenting segment concentration challenges.

    1. Disruptions in manufacturing units: The company’s business is dependent on manufacturing units which are situated in Gujarat and Union territory of Dadra & Nagar Haveli. Any shutdown of operations or changes in the political and economic changes in these areas will have an adverse impact on the business of the company. 
    2. Substantial portion of the revenue comes from few segments: The company is a packaging solutions provider engaged in the business of manufacturing polymer based molded products like Polymer Drums, IBC, carboys, jerry cans, plastic accessories and Metal Drums required by industries like chemicals, agrochemicals, and pharmaceuticals for their bulk packaging requirements. But almost 83% of the revenue comes from  polymer drums and IBC products alone. 

Pyramid Technoplast Limited IPO  – Industry & Market Potential

Plastic molding is the process of pouring liquid plastic into a container or mold and allowing it to harden into the desired shape. These plastic molds can then be used for a variety of applications. Plastic molding industry is estimated to have a CAGR  of 6.84% from 2022-2030.

An intermediate bulk containers (IBC) are known to be reusable industrial containers which are extensively utilized for the handling, storage and transportation of variable states of products including, pastes, liquids and solids. These containers are named as intermediate as they are relatively larger than drum and comparatively smaller than tanks.The sector is developing at a CAGR of 22% to 25%, according to the Packaging Industry Association of India (PIAI).

Pyramid Technoplast Limited IPO  – Type of Offer

Pyramid Technoplast’s IPO combines a fresh issue and an offer for sale (OFS).

  • Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 91.30 Crore. This fund will be used to repay some of the company’s outstanding debts and meet the future working capital requirement.
  • Offer For Sale (OFS): Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company, intending to raise INR 61.75 Crore.

Therefore, the total money expected to be raised through this IPO is INR 153.05 Crore​.

Pyramid Technoplast Limited IPO  Offer Size

Pyramid Technoplast’s IPO aims to raise INR 153.05 crores. The IPO has two segments- fresh issue worth INR 91.30 crores and offer for sale worth INR 61.75 crores.  The IPO’s main objective is to prepay or repay a portion of the company’s outstanding borrowings and to meet future working capital requirements. 

Pyramid Technoplast Limited IPO  Allotment Structure

Pyramid Technoplast Limited’s IPO allotment reserves 30% for QIBs, encompassing banks and mutual funds in adherence to SEBI rules. NIIs, which include those investing over Rs. 2 lakhs, are allocated 20%, while the remaining 50% is designated for RIIs with investments below Rs. 2 lakhs.

  • Qualified Institutional Buyers (QIB): As per SEBI regulations, 30% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
  • Non-Institutional Investors (NII): 20% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
  • Retail Individual Investors (RII): The remaining 50% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.

How to apply for a Pyramid Technoplast Limited IPO ?

To apply for the Pyramid Technoplast IPO through Alice Blue, you would typically follow these steps:

  1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.