Pyramid Technoplast Ltd IPO - Review, Valuation & Todays GMP

Pyramid Technoplast Limited - Complete Overview

Established in 1997, Pyramid Technoplast Limited is a company engaged in manufacturing polymer-based molded products (Polymer Drums), primarily used by chemical, agrochemical, speciality chemical, and pharmaceutical companies to fulfil their packaging requirements.

Pyramid Technoplast is a leading manufacturer of sturdy Intermediate Bulk Containers (IBCs) in India, crafting IBCs with a capacity of 1,000 litres. The company also produces mild steel (MS) drums designed for the secure packaging and transport of chemicals, agrochemicals, and speciality chemicals. The company markets and sells its products under the brand name "Pyramid."

The company commenced commercial production in 1998 and possesses six strategically located manufacturing units. Among these, four are situated in Bharuch, GIDC, Gujarat, while the remaining two are located in Silvassa, UT of Dadra and Nagar Haveli.

A seventh manufacturing unit is currently under construction in Bharuch, GIDC, Gujarat, adjacent to the existing six units. The aggregate installed capacity of the Polymer Drum manufacturing units amounts to 20,612 MTPA. The IBC manufacturing unit has a total installed capacity of 12,820 MTPA, and the MS Drums unit's installed capacity totals 6,200 MTPA.

The company has obtained UN certification for IBCs and MS Drums to align with the safety standards outlined by the United Nations. The company's manufacturing units hold ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 certifications, which are awarded by quality, environment, health, and safety management systems for the production of Polymer Drums, carboys, jerry cans, IBCs, MS Drums, and related accessories. Furthermore, MS Drums conform to the quality standards specified in IS 1783:2014 (Part 1 and 2), as established by the Bureau of Indian Standards.

 

 

What does the company do?

Pyramid Technoplast Limited is a company engaged in manufacturing polymer-based molded products (Polymer Drums), primarily used by chemical, agrochemical, speciality chemical, and pharmaceutical companies to fulfil their packaging requirements.

 

Company Products 

The company's range of products comprises Polymer Drums, IBCs, and MS Drums.

 

IPO Overview

Pyramid Technoplast's IPO date is scheduled from August 18 to August 22, 2023. The IPO's price range is set between Rs.151 to Rs.166 per share, considering a face value of Rs.10 per share.

The upcoming IPO will encompass a total of 9,220,000 shares, aggregating up to Rs.153.05 Crores. Within this, 3,720,000 shares are designated for OFS, while 5,500,000 shares are allocated for the fresh issue of shares.

Pyramid Technoplast's IPO is expected to be listed on the stock market by August 30, 2023. Notably, 30% of the shares are reserved for institutional investors, 20% for non-institutional investors, and the remaining 50% for retail investors.

 

Pyramid Technoplast Limited IPO timetable (Tentative)

EVENTS	DATE
IPO Opening Date	18 August 2023
IPO Closing Date	22 August 2023
IPO Allotment Date	25 August 2023
Refund initiation	28 August 2023
IPO Listing Date	30 August 2023

 

Pyramid Technoplast Limited IPO Details

IPO Opening & Closing Date	18 August to 22 August 2023
Face Value	Rs. 10 per share
Issue Price	Rs. 151 o Rs. 166 per share
Lot Size	90 Shares
Price of 1 Lot	Rs. 14,940
Issue Size	9,220,000 Shares (aggregating up to Rs.153.05 Cr)
Offer for Sale	3,720,000 shares of Rs.10 (aggregating up to Rs.[.] Cr)
Fresh Issue	5,500,000 Shares (aggregating up to Rs.[.] Cr)
Listing at	BSE, NSE
Issue Type	Book Built Issue IPO
Registrar	Bigshare Services Pvt. Ltd.

 

Pyramid Technoplast Limited IPO Lot Details

Minimum Lot Investment (Retail)	1 Lot
Maximum Lot Investment (Retail)	13 Lot
Minimum Lot Investment (HNI)	14 Lot
Maximum Lot Investment (HNI)	66 Lot

 

Pyramid Technoplast Limited IPO Reservation

Institution Portion	30%
Non-Institution Portion	20%
Retail Portion	50%

 

Company Financial

Amount in Crores

Period	FY 21	FY 22	FY 23
Total Assets	153.46	183.76	225.78
Total Revenue	316.18	402.64	482.03
PAT	16.99	26.15	31.76
Net Worth	48.85	75.20	107.25
Reserve & Surplus	44.94	71.29	75.97
Total Borrowings	51.30	64.77	55.34

 

Revenue from the sale of Polymer Drums, IBC, MS Drums and other products

Amount in Lakhs

Product	FY 23	FY 22	FY 21
Polymer Drums	24,807.57	21,400.58	17,933.90
IBC	15,332.46	12,207.90	8,283.81
Sub-total	40,140.03	24,608.48	26,217.71
MS Drums	4,239.24	4,458.06	2,677.76
Others	3,623.24	1,975.03	2,454.71
Total	48,002.51	40,041.57	31,350.18

 

Revenue generated from top customers

Amount in Lakhs

Particulars	FY 23	FY 22	FY 21
Top 5 Customers	9,085.70	9,954.77	7,638.75
Top 10 Customers	13,268.69	13,551.78	10,036.69

 

Objective of the Issue

The raised funds from the IPO will be allocated to achieve the following objectives:

• Repayment and/or partial or complete pre-payment of specific existing borrowings of the company.
• Fulfillment of working capital needs.
• General corporate purposes.

 

Promoters and Management of Pyramid Technoplast Limited

The promoters of the company are Bijaykumar Agarwal, Jaiprakash Agarwal, Yash Synthetics Private Limited, Credence Financial Consultancy LLP, Pushpa Devi Agarwal, and Madhu Devi Agarwal.

Pre-issue Promoters Holding	100.00%
Post-issue Promoters Holding	--

 

Peer Comparison

The following are the listed peers of the company:

Company Name	Total Income (Rs. in lakhs)	P/E Ratio	EPS (Diluted) (Rs.)
Pyramid Technoplast Limited	48,202.74	-	10.24
Time Technoplast Limited	4,29,319.00	14.16	9.64
TPL Plastech Limited	27,184.24	20.50	2.06
Mold-Tek Packaging Limited	73,130.11	41.10	24.37

 

IPO's Valuations

To assess IPO Valuation of Pyramid Technoplast, we can utilize the data provided in the Pyramid Technoplast DRHP. With the company's EPS standing at Rs.10.24 per share and a PE ratio of 16.21, the derived share price amounts to Rs.166.

 

Dividend Policy

The company has not adopted any formal dividend policy in the past, and there is no assurance of any dividends being declared or disbursed in the future.

 

IPO's Strengths

• Diverse customer base.
• Comprehensive product portfolio.
• Strategic location of our manufacturing units.
• Quality Standard Certifications & Quality Tests.
• Experienced Promoters and senior management team.

 

IPO Weaknesses

• The Company has taken unsecured loans totalling ?205.39 lakhs from lenders, which are subject to potential recall at any point.
• None of the Directors of the Company have held positions on the board of any listed company in the past. Consequently, they lack experience in directorial roles within a listed company.
• Proceeds from the Offer for Sale by the Selling Shareholder will not accrue to the Company.
• Non-compliance with ROC filings could lead to potential fines or penalties imposed by regulatory authorities.
• Some of the Company's corporate and statutory records cannot be traceable.
• The Company's ability to secure future funding from banks or financial institutions for working capital requirements might be constrained.
• The company has no long-term agreements with suppliers.
• The Company carries certain contingent liabilities not factored into the Restated Financial Statements, which, if realized, could negatively impact its financial standing.
• The company has experienced negative cash flow in the past and may experience it in future as well
• The company is dealing with certain outstanding legal proceedings.

 

 

IPO GMP Today

Latest GMP of Pyramid Technoplast Limited IPO is Rs.28.

 

Conclusion

Pyramid Technoplast Limited may be a potential investment prospect. The company is pursuing expansion strategies and has demonstrated favourable revenue growth. However, it's important to highlight that the company has encountered negative cash flow in the past and this trend might continue in the future. A thorough analysis is advisable before investors consider applying for this IPO.

 

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To Read the Prospectus of the Company Click Here to Download the DRHP

 

 

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