Bumper debut: Sigachi Enterprises lists at Rs 575 apiece

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Shares of Sigachi Enterprises saw a robust listing on the exchanges as it opened at Rs 570 per share on the National Stock Exchange, implying a premium of 250% from the IPO price of Rs 163 per share. On the BSE, the chemical manufacturer opened at Rs 575, a markup of 252.76%.

The initial public offering (IPO) of the chemical maker Sigachi Industries was subscribed 101.90 times on November 3, the final day of bidding. Investors have put in bids for 54.88 crore equity shares against the IPO size of 53.86 lakh equity shares. Retail investors bought 80.47 times the shares set aside for them. While the portion reserved for non-institutional investors has been subscribed 172.43 times, while qualified institutional buyers (QIBs) had bid 86.51 times of their lot.

Sigachi Industries, raised Rs 125.43 crore at the upper price band by issuing 76.95 lakh shares. The company plans to utilize net proceeds from the issue towards capacity expansion and for general corporate purposes.

Sigachi Industries is engaged in manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. MCC has varied applications in the pharmaceutical, food, nutraceuticals, and cosmetic industries. The company manufactures MCC of various grades ranging from 15 microns to 250 microns and the major grades of MCC manufactured and marketed by the company are branded as HiCel and AceCel.

The company has received various quality certifications and operates 3 manufacturing units namely, Unit I situated at Hyderabad, and two manufacturing units, Unit II and Unit III situated at Jhagadia and Dahej, in Gujarat. As of March 31, 2021, company’s total MCC manufacturing capacity is 13,128 MTPA from three locations.

On the financial front, the company’s net profit jumped to Rs 30.26 crore for the year ended FY21 compared to Rs 19.01 crore in FY19. Whereas it’s total revenues rose to Rs 196.01 crore versus Rs 132.87 crore during the same period. For the quarter ended June 2021 the company posted a profit of Rs 8.9 on a revenue of Rs 55.12 crore.