INSUBCONTINENT EXCLUSIVE:
Sigachi Industries is planning to raise Rs 125 crore in the IPO.Sigachi Industries' three-day share sale via initial public offering (IPO)
opened for subscription today
Sigachi Industries is planning to raise Rs 125 crore in the IPO which is a fresh issue of 77 lakh shares
Sigachi Industries was incorporated in 1989 and manufactures 59 different grades of Microcrystalline Cellulose (MCC) at its manufacturing
units in Hyderabad and Gujarat with an aggregate installed capacity of 11,880 million tonnes per year
With over 30 years of continuous growth, three multi-locational manufacturing facilities and consistent focus on delivering premium quality
product, the company is one of the leading manufacturers of MCC in India.Microcrystalline Cellulose is used as a raw material in making
pharmaceutical and nutraceutical products.Sigachi Industries is selling shares in the price band of Rs 161-163 per share and a retail
investor can bid for a minimum one lot of 90 shares up to maximum of 13 lots
At the upper price band one lot of Sigachi Industries shares in the IPO will cost Rs 14,670.The company will use the proceeds from the IPO
for expansion of production capacity for MCC at Dahej and Jhagadia units in Gujarat, for funding capital expenditure to manufacture CCS at
the proposed unit at Kurnool and for general corporate purposes."At the upper end of the IPO price band, Sigachi Industries is being offered
at price to equity multiple of 15.1 times to its trailing 12 month earnings, with a market capitalization of Rs 501 crore
Given that the company is one of the leading manufacturers of Microcrystalline Cellulose in India with over 30 years of experience,
pan-India and international market presence, experienced management team and investment led future growth with high return on net worth
(RoNW) of 32.12 per cent in the previous financial year and reasonable valuations we give this IPO a "Subscribe" rating," brokergae firm
Anand Rathi said in a note.
