Sigachi Industries Limited IPO: Opens tomorrow; key details that investors must know before investing
Sigachi Industries Limited
Sigachi Industries Limited, a Hyderabad-based manufacturer of cellulose-based excipients, will launch its initial public offering (IPO) tomorrow, i.e., on Monday, November 1, 2021. The company has fixed the price band for the offer at Rs 161-163 per share as it seeks to raise around Rs 125.43 crore from the issue. The issue will close on Wednesday, November 3, 2021.
The IPO of Sigachi Industries IPO consists of a fresh issue of 76,95,000 shares of the face value of Rs 10 aggregating up to Rs 125.43 crores. The retail investors can buy a minimum of one lot of 90 equity shares for an amount of Rs 14,670, at an upper price band, and a maximum of 13 lots worth Rs 1,90,710.
Sigachi Industries intends to utilise issue proceeds for expansion of production facilities for microcrystalline cellulose (MCC) at Dahej, Gujarat, production facilities for MCC at Jhagadia. It will also be used as funding capital expenditure to manufacture Croscarmellose Sodium (CCS) at the Proposed Unit and for general corporate purposes.
Unistone Capital Private Limited is the Book Running Lead Manager for the issue. Kotak Bank Limited is the Sponsor Bank for the issue while Bigshare Services Private Limited is the registrar.
Issue Timeline
- Bidding period: November 1-3, 2021
- Allotment: November 10, 2021.
- Refund Initiation: November 11, 2021.
- Share Crediting: November 12, 2021.
- Listing: November 15, 2021.
Besides, Microcrystalline cellulose manufacturer Sigachi Industries has garnered Rs 37.62 crore from 2 anchor investors on October 29, 2021, ahead of its initial share sale. The company has decided to allocate a total of 23,08,500 equity shares to anchor investors, at a price of Rs 163 per equity share, the company said in its BSE filing. Two anchor investors that invested in the company are the 3 Sigma Global Fund and Nexus Global Opportunities Fund.
It is the smallest issue in size among seven IPOs recently launched, including Nykaa and Fino Payments Bank.
Sigachi Industries is engaged in the manufacturing of microcrystalline cellulose (MCC), a polymer that is widely used for finished dosages in the pharmaceutical industry. At present, the company manufactures 50 different grades of MCC at its manufacturing units, situated at Hyderabad and Gujarat, under the brand named HiCel and AceCel. The company in RHP said it feels that there are no listed entities similar to our line of business and comparable to our scale of operations, hence the comparison is not possible.