Sigachi Industries Initial Public Offering (IPO) received an overwhelming response largely on support of non-institutional buyers. Sigachi Industries IPO was subscribed as much as 101.91 times on the last day, that is on November 3. The IPO received bids for 54,89,47,440 shares against 53,86,500 shares on offer, according to data from National Stock Exchange or NSE. The portion for non-institutional investors was subscribed 172.43 times. On the other hand, those meant for Qualified Institutional Buyers (QIBs) were subscribed 86.51 times and those of Retail Individual Investors (RIIs) was booked 80.49 times.
Sigachi Industries IPO Listing, Refund Dates
Sigachi Industries IPO is set to be listed on National Stock Exchange and Bombay stock exchange. The listing will be done on November 15, while the basis of allotment will be declared on November 10. The basis of allotment of an IPO is when its registrar publishes a document after finalising the share allocation. This is based on regulatory guidelines. The refunds for those who will not be selected in the listing will be done on November 11 to their bank accounts. The credit to demat account will be done on November 12. Bidders of the offer can check the Sigach Industries IPO listing on the registrar Bigshare Services Private Limited website or on the BSE website.
Sigachi Industries IPO GMP
As of November 5, Friday, the grey market premium or GMP of Sigachi Industries IPO was fixed at Rs 190. This was almost 120 per cent up over the higher end of the issue price of Rs 163. The high GMP indicated strong listing for Sigachi Industries shares on NSE and BSE later this month.
Sigachi Industries IPO Details
The price range for the Sigachi Industries IPO was fixed at Rs 161-163 per share. The offer had a value of Rs 125.42 crore. Unistone Capital Private Limited was the sole manager to the initial public offer. The huge response in the offer was likely driven by the company’s reputation of being one of the most well-known units in the MCC industry. “The company has made advancements in development of MCC and are positioned as one of the key manufacturing players globally in manufacturing of MCC based excipients. In the domestic market, the Company is one of the leading manufacturers of MCC. This along with its technical capabilities, capable R&D Division and manufacturing infrastructure, gives it a first mover advantage in India,” said market analysis group Anand Rathi.
Objectives of Company
Sigachi industries plans to use the money from the IPO for expansion of production capacity purposes. The funds will be utilised to expand production at their Dahej and Jhagadia units in Gujarat. While Rs 2,815.82 lakh will be used in Dahej, Rs 2,924.13 lakh wil be used in Jharjharia for the expansion. Apart from this, Rs 3,229.87 will be used fund capital expenditure to manufacture CCS at a unit that is yet to be set up at Kurnool. The company also plans to use it for general corporate purposes.
As per Reliance Securities, “Sigachi Industries Ltd (SIL), incorporated in 1989, is engaged in the manufacturing of Microcrystalline Cellulose (MCC), which is widely used as an excipient in various industries. 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 it are branded as HiCel and AceCel. Presently, the company manufactures 59 different grades of MCC at the units situated in Hyderabad and Gujarat.
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