Sigachi Inds makes stellar debut, lists at 253% premium to its issue price

At 10:09 am; the stock was locked at the maximum 5 per cent upper circuit at Rs 603.75, a 270 per cent jump over its issue price of Rs 163 per share

Sigachi Industries (SIL) made a stellar stock market debut - its shares got listed at Rs 575, a 253 per cent premium over its issue price of Rs 163 per share on the BSE. On the National Stock Exchange (NSE), the stock opened at Rs 570, a 250 per cent higher against its issue price.

At 10:09 am; the stock was locked at the maximum 5 per cent upper circuit at Rs 603.75, a 270 per cent gain over its issue price. While, on the NSE, the stock was frozen at Rs 598.50, a 267 per cent higher against its issue price.

A combined 1.69 million shares changed hands at the countter on the BSE and NSE. and there were pending buy orders for 1.05 million shares on the exchanges. In comparison, the S&P BSE Sensex was up 0.37 per cent at 60,912.

The initial public offering (IPO) of SIL had received a robust response with the issue subscribed nearly 102 times. The institutional portion was subscribed 86.51 times; the wealthy investor portion by 172 times and the retail investor portion subscribed 80.5 times, data shows.

The company proposes to utilize the net proceeds from the issue towards funding capital expenditure for expansion of production capacity for microcrystalline cellulose at Dahej (Gujarat) amounting to Rs 28.16 crore, for the expansion of production capacity for microcrystalline cellulose at Jhagadia (Gujarat) worth Rs 29.24 crore, to manufacture Croscarmellose Sodium, a modified cellulose used as excipient at Kurnool, Andhra Pradesh amounting Rs 32.30 crore and balance for general corporate purposes.

SIL is engaged in manufacturing microcrystalline cellulose ("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. It manufactures MCC of various grades ranging from 15 microns to 250 microns. The major grades of MCC manufactured and marketed by the Company are branded as HiCel and AceCel.