Sigachi Industries, which saw bumper listing, bags LoI from Grasim

Sigachi Industries got a bumper listing and secured number one position in 2021 with a gain of 270%

Sigachi Industries said that it has received an LoI from Grasim Industries (Aditya Birla Group) for operations and management (O&M) Services.

In a regulatory filing made during market hours on Friday, the company said that it has received a Letter of Intent from Grasim Industries (Aditya Birla Group), for the operations and management of the three chlorine product plants - SBP-48 TPD, CPW-30 TPD & MCAA-20TPD.

The agreement shall be for an amount of Rs 20 crore and will be valid for a period of 3 years, the company said.

Sigachi Industries manufactures chlorinated paraffin and hydrochloric acid. It also manufactures manufacture microcrystalline cellulose (MCC), which is widely used as an excipient for finished dosages in the pharmaceutical industry. It has also entered into operations and management agreements with Gujarat Alkalies and Chemicals (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.

The company reported a 24.2% rise in consolidated net profit to Rs 9.86 crore in Q2FY22 from Rs 7.93 crore reported in Q2FY21. Consolidated revenue from operations grew by 16.8% to Rs 57.19 crore in Q2FY22 from Rs 48.94 crore registered in Q2FY21.

The scrip was currently trading 0.88% lower at Rs 397.70 on the BSE.

Sigachi Industries got a bumper listing and secured number one position with a gain of 270%. This is the highest listing gain by any company launched in year 2021.