Pyramid Technoplast IPO allotment out; here's what grey market premium signals

Pyramid Technoplast has announced the basis of allotment of its shares after a three-day bidding process. The initial stake sale of the polymer-based drum maker had received a strong response from the investors during the three-day bidding process. The listing of the IPO is likely on Wednesday, August 30.

The Gujarat-based Pyramid Technoplast raised a little more than Rs 153-crore by selling its shares in the range of Rs 151-166 apiece. Investors made for a minimum of 90 equity shares and its multiples thereof. The issue was open for subscription between August 18-22.

The issue was overall subscribed 14.72 times, including non-institutional investors' portion being booked 32.24 times; the portion for retail investors was being booked 29.09 times; and The quota reserved for qualified institutional bidders getting subscribed 9.94 times.

Grey market premium (GMP) of Pyramid Technoplast has remained in the tight range of Rs 20-25 per share since the conclusion of the issue, which was around Rs 30 apiece before the opening of the issue. The current grey market signal suggests a mild listing pop, of single digits for the investors.

Incorporated in 1997, Pyramid Technoplast manufactures polymer-based molded products (Polymer Drums) mainly used by chemical, agrochemical, specialty chemical, and pharmaceutical companies for their packaging requirements. Pyramid Technoplast started its commercial production in 1998.

Brokerage firms have a mixed view on the issue as a few suggest to 'subscribe' for aggressive bidders to it, citing its fair pricing, healthy financials, strong customer base and long-term relationships with the customers. On the other hand, a few analysts have suggested to give a skip citing inconsistent debt, high competition and thin margin.

Investors, who had bid for the issue and have not checked their application status, can check the allotment status on the Bombay Stock Exchange (BSE) website, which is https://www.bseindia.com/investors/appli_check.aspx.

Investors can also check the allotment status on the online portal of Bigshare Services Private Limited. (https://ipo.bigshareonline.com/IPO_Status.html), the registrar to the issue.

PNB Investment Services and First Overseas Capital are the book running lead managers to the issue, while Bigshare Services has been appointed as the registrar to the issue. The company will be listed at both BSE and NSE.

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