Sigachi Industries Limited IPO Details

Dates, Price band, Lot size, Risks, Review and broker recommendations etc.
Sigachi IPO

Sigachi IPO: Key Details

  • Grey Market Premium (GMP) today: 150 – 160

Note: We neither trade nor encourage our readers to trade in the Grey Market. We share the GMP information for educational purposes only, so that, you can make an informed decision.

Company Information

Sigachi Industries Limited, incorporated in 1989, is engaged in manufacturing microcrystalline cellulose (“MCC”) which is widely used as an excipient for finished dosages in the pharmaceutical industry. They operate three manufacturing units namely Unit I situated at Hyderabad and two manufacturing units, Unit II and Unit III are situated at Jhagadia and Dahej, respectively located in Gujarat.

  • Unit I manufactures both HiCel and AceCel and caters to the domestic and international customers such as end users, merchants, distributors and exporters.
  • Unit II manufactures AceCel and supplements the sale in the domestic market.
  • Unit III is situated at Special Economic Zone (“SEZ”) at Dahej and is engaged in the manufacture of HiCel and special grades which is exported to overseas customers and distributors

Competitive Strengths

  • One of the leading manufacturers of MCC (cellulose-based excipient) in India with over 30 years experience.
  • Pan India and International market presence
  • Well experienced management team with proven project management and implementation skills.
  • Comprehensive product portfolio enables us to serve diverse end-use applications
  • Presence across diverse industry verticals with long standing relationship with customers.
  • Growth led by continuous investment and focus on R&D
  • Quality Assurance and Quality Control of products.
  • Strategically located manufacturing facilities

Company Strategy

  • Increasing manufacturing capacity to focus on the growing demand of core products
  • Increasing focus on core business segment
  • Diversifying and increasing penetration in markets
  • Increasing Global presence
  • Strengthen marketing network

Proceeds from Sigachi IPO will be used to:

  • Funding capital expenditure:
    • for expansion of production capacity for microcrystalline cellulose (“MCC”) at Dahej, Gujarat;
    • for expansion of production capacity for microcrystalline cellulose (“MCC”) at Jhagadia, Gujarat; and
    • to manufacture Croscarmellose Sodium (“CCS”), a modified cellulose used as excipient at Kurnool, Andhra Pradesh
  • General Corporate Purposes

Sigachi IPO: Financials

201920202021 Mar2021 June
Revenue from Ops₹1289.8 Cr₹1390.6 Cr₹1927.6 Cr₹549.5 Cr
Net Profit₹247.28 Cr₹253.44 Cr₹384.84 Cr₹115.5 Cr
Profit after Tax₹190.13 Cr₹203.15 Cr₹302.60 Cr₹89.90 Cr
EPS (Basic)8.258.8113.133.90
₹ in Crores, except EPS

EPS (Avg*)P/E (Floor)P/E (Cap)
Based on basic EPS10.8814.8014.98
* Weighted Average for last 3 years

Sigachi IPO: Comparison with listed industry peers

As per RHP, there are no listed companies in India whose business portfolio is comparable with that of Fino Payment’s business and comparable to the scale of its operations.

Sigachi IPO Dashboard

Issue Details

TypeValue
Issue Size₹125.43 Cr
Fresh Issue₹125.43 Cr
Face Value₹10/- per Equity Share
IPO Price₹161 – ₹163
Lot Size 90 shares
LotsMin 1 – Max 13

Key Dates

Date TypeDate
Bid Open1/11/2021
Bid Close3/11/2021
Allotment Finalization10/11/2021
Initiation of Refunds11/11/2021
Credit of Shares12/11/2021
Listing Date15/11/2021

Lot Size and Price

LotsSharesAmount
190₹14,670
131170₹1,90,710

Promoter Holding

HoldingPercentage
Pre-Issue64.64%
Post-Issue[.]%

Sigachi IPO: Investor Quota and Shares Offered

Investor TypeQuotaShares on Offer
QIB50%[.]
NII15% [.]
RII (Retail)35% [.]
Employees [.]
Total100% [.]

Sigachi IPO: Risks

  • The company is reliant on the demand from the pharmaceutical industry for a significant portion of the
    revenue.
  • Highly depend on major raw materials and a few key suppliers who help to procure the same
  • Dependent on a few customers for a significant portion of the revenue, and any decrease
    in revenues or sales from anyone may adversely affect the business
  • The company has experienced negative cash flow in the past and may continue to do so in the future
  • They may face several risks associated with the proposed expansion of existing manufacturing facilities

For complete internal and external risk factors, you can refer to the RHP of the company.

Sigachi IPO: Registrar and Lead Managers

Registrar of the Issue

BIGSHARE SERVICES PRIVATE LIMITED

1st floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road,
Marol, Andheri (East), Mumbai- 400 059, Maharashtra, India.

Phone: +91 22 6263 8200
Email: [email protected]

Lead Managers of the Issue

UNISTONE CAPITAL PRIVATE LIMITED

305, A Wing, Dynasty Business Park,
Andheri Kurla Road, Andheri East,
Mumbai- 400059.

Phone: +91 98200 57533
Email: [email protected]

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