Sigachi was established in 1989 as among the biggest manufacturers of microcrystalline cellulose and cellulose powders, with a team of technocrats who are well-versed in the fields of pharmaceutical excipients, cellulose-based filter coatings, plasticizers and chlorinated synthetic resins. Sigachi Industries IPO will hit the market on 01 November 2021.
Table of Contents
About
Sigachi Industries has ensured supply chain reliability for its clientele spread across the world, with three multi-location facilities. The firm strengthens its business by expanding rapidly with an optimistic vision for new business goals from time to time.
Business network
It has been established as a quality-conscious and authentic distributor in India and throughout Asia, Australia, the American continent, Europe and the Middle East.
They are constantly striving to bring out new specialized products that meet the overlooked needs of the food processing and pharmaceutical industries, with Continuous Innovation as their objective.
Their products are used in the pharmaceutical, nutraceutical, and supplement markets, as well as the food ingredients and drug formulation enterprises. Clients know and enjoy the quality of the product all over the world.
Awards
The firm received four prestigious national / state awards for outstanding production and quality. They also received the 2011 MSME Innovation Award.
The award is instituted and supported by the National Science and Technology Development Board (NETEBD), Department of Science and Technology.
Vision
The vision of the firm is to be best managed, fastest growing Indian company in the Pharma, healthcare and food segments. They believes in creating lasting value for its shareholders.
They believes in empowering and motivating its workers and being the best they can be and providing them with an environment of continuous personal growth and innovation.
The Firm will engage in sustainable practices and deliver unparalleled quality of items and client service.
Sigachi Industries IPO
Sigachi Industries Limited, headquartered in Hyderabad has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 200 Crore on 09 August 2021.
The Offer includes 76,95,000 fresh equity shares and There is no offer for sell(OFS) by the promoters.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 1,334.07 | 1,091.44 | 914.63 | ||
| Total Revenue | 1,960.11 | 1,439.49 | 1,328.78 | ||
| Profit After Tax | 302.60 | 203.16 | 190.13 | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 13.13 | 13.13 | 3 |
| Financial Year 2020 | 8.81 | 8.81 | 2 |
| Financial Year 2019 | 8.25 | 8.25 | 1 |
| Weighted Average | 10.88 | 10.88 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are some of the basic features that contribute towards deciding the Issue Price:
- With over 30 years of expertise, one of India’s top makers of cellulose-based excipients.
- Market footprint across India and internationally.
- Project management and execution abilities have been demonstrated by a well-experienced management team.
- They can service a wide range of end-use applications thanks to their extensive product portfolio.
- They have a strong presence in a variety of industry verticals and have a long-standing connection with their clients.
- Constant investment and a priority on R&D are driving growth.
- Their products are subject to quality assurance and control.
- Manufacturing plants in strategic locations
Sigachi Industries Peer Comparison
They manufacture microcrystalline cellulose (“MCC”), which is commonly utilised in the pharmaceutical sector as an excipient for final doses. They feel there are no listed organisations that are equivalent to their size of operations and are similar to their area of business, therefore comparison is not feasible.
Sigachi industries IPO Details
| IPO Opening Date | 01 November 2021 |
| IPO Closing Date | 03 November 2021 |
| Issue Type | Book Built |
| Face Value | 10 per share |
| IPO Price | 161 to 163 per equity share |
| Market Lot | 90 |
| Min Order Quantity | 90 |
| Listing At | BSE, NSE |
| Issue Size | 200 Crore |
| Fresh Issue | 76,95,000 equity share |
| Offer for Sale | 0 |
Sigachi Industries IPO Tentative Date
Sigachi Industries IPO opening date is 01 November 2021, and the closing date is 03 November 2021. The issue may list on 15 November 2021.
| IPO Open Date | 01 November 2021 |
| IPO Close Date | 03 November 2021 |
| Basis of Allotment Date | 10 November 2021 |
| Initiation of Refunds | 11 November 2021 |
| Credit of Shares to Demat Account | 12 November 2021 |
| IPO Listing Date | 15 November 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 35 | Minimum level of 1 lot, based on availability, for every shareholder. |
Sigachi Industries IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Sigachi Industries IPO.
Sigachi Industries IPO GMP
Sigachi Industries IPO Grey Market Premium is 232.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 14 November 2021 | 232 | 7200 | 700 |
| 13 November 2021 | 227 | 4400 | 450 |
| 12 November 2021 | 209 | 3800 | 350 |
| 11 November 2021 | 203 | 5400 | 550 |
| 10 November 2021 | 183 | 4800 | 450 |
| 09 November 2021 | 189 | 6900 | 700 |
| 08 November 2021 | 162 | 4100 | 400 |
| 07 November 2021 | 165 | 2500 | 250 |
| 06 November 2021 | 169 | 6800 | 650 |
| 05 November 2021 | 173 | 6100 | 600 |
| 04 November 2021 | 177 | 6400 | 650 |
| 03 November 2021 | 155 | 5200 | 500 |
| 02 November 2021 | 142 | 5900 | 600 |
| 01 November 2021 | 91 | 4600 | 450 |
| 31 October 2021 | 93 | 4100 | 400 |
| 30 October 2021 | 82 | 5200 | 550 |
| 29 October 2021 | 72 | 2300 | 200 |
| 28 October 2021 | 74 | 1000 | 100 |
| 27 October 2021 | No Trade | No Trade | No Trade |
| 26 October 2021 | No Trade | No Trade | No Trade |
Sigachi Industries IPO Review
Answer to your question Sigachi Industries IPO is good or bad is you should invest in this IPO. The company is working in chemical sector which is on boom due to companies are leaving china & looking for other options.
India is one of them & this company is having a good track record. you can subscribe it for long term and listing gain.
Sigachi Industries IPO Risk
- For a large percentage of their income, their company is dependant on the pharmaceutical industry.
- They rely on a small number of clients for a substantial percentage of their revenue.
- They may face a number of hazards as a result of the proposed expansion of their existing manufacturing operations and the production of CCS at the Proposed Unit, which might stifle their growth.
- Their fully owned subsidiary has already experienced losses.
- If they are unable to preserve and expand the image of their brands, it may have a negative impact on their business and prospects.
- Decreasing forest reserves may limit raw material availability, causing raw material costs to rise.
Other Threats
- The continuation of their operations is important to their business, and any stoppage of their manufacturing unit might have a negative impact.
- Any flaw in their quality control procedures might have a negative impact on their business.
- Any changes in rules regulating their goods and those of their customers might have a negative impact on their business.
- Their inability to effectively manage their growth or implement their business plan and growth strategy might have a negative impact on their company.
- Their Company’s documents and regulatory filings are not all traceable.
- There are pending legal proceedings concerning their company that, if found in their favour, might have a negative impact on their business and financial situation.
Sigachi Industries IPO Brokerage views
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Sigachi Industries IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 01 November 2021 | 1 | 0.57 | 4.46 | 16.81 | N/A | 9.52 |
| 02 November 2021 | 2 | 0.82 | 16.99 | 38.49 | N/A | 23.12 |
| 03 November 2021 | 3 | 86.51 | 172.43 | 80.49 | N/A | 101.91 |
Promoters
- Rabindra Prasad Sinha
- Chidambarnathan Shanmuganathan
- Amit Raj Sinha
- Rps projects & developers private limited
Promoter Holding
| Pre Issue Share Holding | 53.32% |
| Post Issue Share Holding |
Sigachi Industries IPO Prospectus
Contact Details
Sigachi Industries Limited
229/1 & 90, 4thfloor, Kalyan’s Tulsiram Chambers, Madinaguda,
Hyderabad- 500 049, Telangana, India
Telephone: +91 040 4011 4874/75/76
E-mail: [email protected]
Website: www.sigachi.com
Registrar
BIGSHARE SERVICES PRIVATE LIMITED
1st floor, Bharat Tin Works Building,
Opp. Vasant Oasis, Makwana Road,
Marol, Andheri (East),
Mumbai- 400 059, Maharashtra, India.
Telephone: +91 22 6263 8200
Facsimile: +91 22 6263 8299
E-mail: [email protected]
Website: www.bigshareonline.com
Lead Manager(s)
- SAFFRON CAPITAL ADVISORS PRIVATE LIMITED
We hope we are able to answer all your questions about Sigachi Industries IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Sigachi Industries IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Sigachi Industries IPO of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
FAQ
Sigachi Industries IPO Opening Date?
Sigachi Industries IPO will open on 01 November 2021.
Sigachi Industries IPO Listing Date?
Sigachi Industries IPO will list on 15 November 2021.
Sigachi Industries IPO GMP Today?
Sigachi Industries IPO Grey Market Premium is INR 232.
Sigachi Industries IPO Allotment Date?
Sigachi Industries IPO basis of allotment will be on 10 November 2021.
Lot size for Sigachi Industries IPO?
Lot size for Sigachi Industries IPO is 90.
