Sigachi Industries lists trading at 252 percent premium
Published On: Monday, November 15, 2021 | By: Team KnowMyStock
Shares of Sigachi Industries made a strong listing on the National Stock Exchange (NSE) and BSE at 252% premium over the issue price of ₹163 apiece. The stock is listed at Rs 575, a premium of 252.7% over its IPO price of Rs 163, according to Bloomberg data. The stock then gained further to hit an intraday high of Rs 603.75, up over 270%, on the NSE. Post listing, the market capitalization of the company stood at ₹1,856 crores, according to BSE data. The demand was very high for Sigachi Industries shares as it was locked in the 5 percent upper circuit. The chemical maker's IPO was subscribed nearly 102 times. The company was looking to raise ₹125.43 crores by selling 76.95 lakh shares through the IPO with a price band of ₹161 to ₹163 per share. Incorporated in 1989, the company is engaged in the manufacturing of microcrystalline cellulose, the polymer that is widely used for finished dosages in the pharmaceutical industry.
The proceeds from the issue will be used for the expansion of production facilities of MCC at Dahej and Jhagadia in Gujarat. It operates through three manufacturing units in Hyderabad and Jhagadia, Dahej located in Gujarat.
Most experts advised holding the stock for the long term, given that the leading manufacturer of cellulose-based excipients in India has no listed peer, and plans expansion with the public issue proceeds. They also recommended partial profit-booking and holding the remaining shares for the long term.
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