Pyramid Technoplast IPO

Pyramid Technoplast Limited is an industrial packaging company based in India. They specialise in the manufacturing of polymer-based moulded products, particularly polymer drums, which are widely used by various industries such as chemical, agrochemical, speciality chemical, and pharmaceutical companies for their packaging needs.

In addition to polymer drums, Pyramid Technoplast is also recognised as one of India's leading manufacturers of rigid Intermediate Bulk Containers (IBCs). Their IBCs have a capacity of 1,000 litres and are designed to handle, transport, and store liquids, semi-solids, pastes, or solids in industrial settings.

The company's promoters are Bijaykumar Agarwal, Jaiprakash Agarwal, and Yash Synthetics Private Limited.

Pyramid Technoplast Limited IPO Details

Pyramid Technoplast is a fresh issue and offer for sale IPO worth ₹153.05 crore. The issue comprises 92,20,000 shares and is priced at ₹151 to ₹166 per share. Retail investors can bid for the Pyramid Technoplast Limited IPO, which will open on August 18, 2023. Pyramid Technoplast Limited’s IPO will list on NSE and BSE exchanges on August 30, 2023.

Pyramid Technoplast Limited IPO Objective 

The objectives of Pyramid Technoplast Limited's IPO are listed below:

• Repayment and/or prepayment, in full or part, of certain outstanding borrowings availed by the company.
• Funding the working capital requirements of the company.
• General corporate purposes.

Highlights of Pyramid Technoplast Ltd

• Pyramid Technoplast Limited has successfully obtained UN certification for its IBCs and MS drums, guaranteeing that its products adhere to the stringent safety standards required for the transportation of hazardous materials.
• During FY 2023, 2022 and 2021, the company’s top 5 customers represented ₹9,085.70 lakhs, ₹9,954.77 lakhs and ₹7,638.75 lakhs, respectively, representing 18.92%, 24.88%, and 24.38%, respectively, of their revenues from operations.

Competitive Peers

Time Technoplast Limited, TPL Plastech Limited, and Mold-Tek Packaging Limited are the peer companies listed in India engaged in the same business line. Considering the nature, range of products/services, turnover and size of the company's business, the peers are not strictly comparable.

Pyramid Technoplast Company Financials

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Strengths

1. The company’s profit after tax increased by ~88% from ₹1,691.04 lakh on March 31, 2021, to ₹3,176.07 lakh on March 31, 2023.

2. The net worth of the company has been consistently increasing. It grew by ~2.196 times from ₹4,884.60 lakh on March 31, 2021, to ₹10,725.02 lakh on March 31, 2023.

Risks

1. Certain contingent liabilities that may potentially pose risks to the financial condition of the company are not fully reflected in its financial statements.

2. In the past, the company has encountered negative cash flows, and there is a possibility that such circumstances may persist in the future, which could have an adverse impact on the business.