Pyramid Technoplast shares hit lower circuit after a mild listing pop

Shares of Pyramid Technoplast, after a mild listing pop on its debut on Tuesday, hit lower circuit for the day. The stock found no buyers even after debuting at double-digit premium at the bouses during its maiden trading session. The stock was locked in the seller's circuit of 5 per cent.

Shares of Pyramid Technoplast were listed at a decent of 12 per cent at Rs 187 on the Nation Stock Exchange (NSE), against the issue price of Rs 166, while the stock debuted at premium of little more than 11 per cent at Rs 185 on the BSE against the given issue price.

However, post-listing the stock topped at Rs 188 mark, taking the overall gains over 13 per cent on both the exchanges, before hitting the lower circuit of 5 per cent to Rs 175.75. The company was commanding a total market capitalization less than Rs 650 crore.

The stock has been listed in the T-segment, which means that intra-day trading in the stock is not allowed. It means that buying and selling on the same day is not allowed and one needs to take the delivery in the demat account to exit the counter. Also, the circuit filter for the counter for initial ten sessions will be of 5 per cent only.

Pyramid Technoplast had a flat-to-positive listing because of equity market conditions. The issue had also received a good response from investors on both the institutional and retail sides. Our recommendation for the IPO was to subscribe as a high-risk investor, said Pravesh Gour, Senior Technical Analyst, Swastika Investmart.

"The company faces some risks, such as competition from new entrants, fluctuations in the price of raw materials, and changes in government policies. Additionally, the company has experienced negative cash flow in the past. Nevertheless, the IPO is fairly priced However, investors who applied for listing gains may either choose to exit or hold it with a stop loss at the issue price," he added.

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.

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.

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