Pyramid Technoplast IPO records 5.84 times booking on Day 2 of bidding

On the second day of bidding (August 21), the initial public offering (IPO) of Gujarat-based Pyramid Technoplast was subscribed 5.84 times with bids for 4.41 crore equity shares against an offer size of 75.6 lakhs.

Individuals with high net worth and retail investors have outbid institutional investors, purchasing 6.52 and 6.73 times their respective allotted shares, or 50% and 20% of the IPO's total size, respectively.

To date, qualified institutional buyers have bid 1.49 times their permitted quota, or 30% of the offer amount.

On its first day of bidding (August 18), the Rs 153-crore public issue was 1.61 times subscribed.

The polymer-based moulded products producer plans to raise Rs 91.3 crore through the fresh issuance and another Rs 61.75 crore through the offer-for-sale by the promoter.

The offer price range is between Rs 151 and Rs 166 per share, with a final price of Rs 151 fixed and the offer ending on August 22.

On August 17, the industrial packaging firm raised Rs 27.55 crore from four anchor investors, including Carnelian Structural Shift Fund and Alchemie Ventures Fund-Scheme I.

The majority of the proceeds from the new issue will go towards meeting working capital and debt service obligations, with the remainder used for general company reasons.

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Pyramid Technoplast produces polymer-based bulk packaging drums and intermediate bulk containers (IBC), which are primarily used for packaging by the chemical, agrochemical, speciality chemical, and pharmaceutical industries. It also produces mild steel (MS) drums for shipping and storage purposes.