Sigachi IPO: Key Details
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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
- 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
- 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
|2019||2020||2021 Mar||2021 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 (Avg*)||P/E (Floor)||P/E (Cap)|
|Based on basic EPS||10.88||14.80||14.98|
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 Size||₹125.43 Cr|
|Fresh Issue||₹125.43 Cr|
|Face Value||₹10/- per Equity Share|
|IPO Price||₹161 – ₹163|
|Lot Size||90 shares|
|Lots||Min 1 – Max 13|
|Initiation of Refunds||11/11/2021|
|Credit of Shares||12/11/2021|
Lot Size and Price
Sigachi IPO: Investor Quota and Shares Offered
|Investor Type||Quota||Shares on Offer|
Sigachi IPO: Risks
- The company is reliant on the demand from the pharmaceutical industry for a significant portion of the
- 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
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]