On 15 Nov 2021, Hyderabad-based Sigachi Industries marked a historic debut at stock exchanges. According to the stock markets expert, shares of the Hyderabad-based company are expected to make a ‘dream debut’ on Dalaal Street as the public issue worth Rs 125.43 crore may have a ‘fireworks-like listing.’The company’s share got listed at Rs 575 on BSE, 252.76 percent premium over its issue price of Rs 163. The stock got listed at Rs 570 on the National Stock Exchange (NSE).
The initial stake sale of Sigachi Industries was open for subscription between November 1-3. The company raised Rs 125.43 crore via its primary route and sold its share in the range of Rs 161-163 per piece. The allotment of the issue took place on November 10. As per reports, Sigachi industries plans to use the money from the IPO for expansion of production capacity purposes.
Merely 24 hours ahead of its listing, Sigachi Industries was leading a super solid premium of Rs 220-230 in the grey market—indicating a robust debut on Dalal Street. The issue received a hefty response from investors as it was subscribed about 102 times. The quota for qualified institutional buyers was subscribed 86.5 times, whereas the quota for retail buyers was subscribed 80.5 times. HNI investors’ portion was subscribed 172.43 times.
About Sigachi Industries:
Located in Hyderabad, Sighachi Industries is a chemical industry company. It deals with the manufacturing of microcrystalline cellulose (MCC) that has varied applications in the pharmaceutical, food, nutraceuticals, and cosmetic industries. The funds raised from the public issue will be utilized for expanding production at the company’s Dahej and Jhagdia units in Gujrat. While Rs 2815.82 lakhs will be used in Dahej, the other Rs 2924.13 lakhs will be utilized in Jharjharia for the expansion. The company also plans to use the fund for its general corporate purposes.
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