Sigachi Industries IPO opens today - 10 things to know

Sigachi Industries is all set to open its initial public offer (IPO) on Monday, November 1, 2021.

Sigachi Industries IPO to open in Rs 161-163 price band.

Sigachi Industries, manufacturer of cellulose-based excipient, is all set to open its initial public offer (IPO) on Monday, November 1, 2021. The issue will close after the three day bidding process on November 3, 2021.

The IPO aims to raise Rs 125.43 crore at the upper end of the price band of Rs 161-163 per share. It will issue 76.95 lakh equity shares through IPO.

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If you are planning to invest in the public issue then here are the 10 things which you need to know:

1. Price band: The price band of the IPO is Rs 161-163 per share.

2. Objects of the issue: The amount raised through the public issue will be used for the expansion of the production capacity facility for Microcrystalline cellulose at Dahej and Jhagadia. To manufacture Croscarmellose Sodium at Kurnool and for general corporate purposes.

3. No proceeds from OFS: It can be noted that the company will not receive any proceeds from the Offer for Sale (OFS).

4. Book running lead managers: Unistone Capital is the sole book-running lead manager to the issue.

5. Registrar: Bigshare Services Private Ltd. is the registrar of the public issue.

6. Shareholding pattern: Before the issue the shareholding of promoters and promoter group is 64.6 percent which will reduce to 48.5 percent post issue. The public shareholding will increase to 51.5 percent post the issue from the existing 35.4 percent.

7. About the company: Sigachi Industries Ltd was incorporated as a private limited company in 1989, manufacturing 59 different grades of Microcrystalline Cellulose (MCC) at its manufacturing units, situated at Hyderabad and Gujarat with an aggregate installed capacity of 11,880 MTPY.

8. Entered into operations and management agreements with GACL: The Company has also entered into operations and management agreements with Gujarat Alkalies and Chemicals Limited (“GACL”) for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminum chloride in the said units.

9. Engaged in manufacturing MCC: The company is engaged in manufacturing MCC which is widely used as an excipient for finished dosages in the pharmaceutical industry. The inert non-reactive, free-flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and cosmetic industries.

10. Operates three manufacturing units: The company operates 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.

(Disclaimer: The views/suggestions/advices expressed here in this article is solely by investment experts. Zee Business suggests its readers to consult with their investment advisers before making any financial decision.)

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Sigachi Industries IPO Initial Public Offer (IPO)