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All that you should know about the Company before applying for the IPO.

November 01, 2021     

The public issue of equity shares of Sigachi Industries Limited will open for subscription on November 01, 2021 and closes on November 03, 2021 It is expected to list on the stock exchanges on November 15, 2021 What does the company do? Why is the company going public? Who are its key competitors? Its key strengths, and lot more. Here’s everything that you want to know about the company to analyse the IPO.

Company Profile

Incorporated in 1989, the Company is one of the leading manufacturers of MCC (cellulose based excipients) in India. MCC (Microcrystalline Cellulose) has varied applications in the pharmaceutical, food, nutraceuticals and the cosmetic industries. It is widely used as an excipient for finished dosages in the pharmaceutical industry. The Company manufactures 59 different grades of MCC. The major grades of MCC that it manufactures and markets are branded as HiCel and AceCel.

It 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.

The Company export its products to 41 countries including Australia, USA, South America, U.K., Poland, Italy, Denmark, China, among others. Its exports business account for about 73% of its total sales (in FY 21). The Company operates 3 manufacturing units – one unit situated at Hyderabad and other two are situated in Gujarat (at Jhagadia and Dahej).

Who are the Promoters of the Company?

Rabindra Prasad Sinha, Chidambarnathan Shanmuganathan, Amit Raj Sinha and RPS Projects & Developers Private Limited

Positives about the Company

Some of the key strengths of the Company are listed below.

  • One of the leading manufacturers of MCC in India with over 30 years’ experience
  • Pan India and International market presence
  • Comprehensive product portfolio to serve diverse end-use applications
  • Presence across diverse industry verticals with long standing relationship with the customers.
  • Growth led by continuous investment and focus on R&D
  • Quality Assurance and Quality Control of the products.
  • Strategically located manufacturing facilities
  • Well experienced management team with proven project management and implementation skills

Who are its key competitors?

There are no listed peers in India

Why is the Company going public?

Given below are the objectives of the Company –

The Company proposes to utilise the Net Proceeds from the Fresh Issue towards funding the following objects –

  • Funding capital expenditure:
    • for expansion of production capacity for MCC at Dahej, Gujarat
    • for expansion of production capacity for MCC at Jhagadia, Gujarat
    • to manufacture Croscarmellose Sodium (CCS), a modified cellulose used as excipient at Kurnool, Andhra Pradesh
  • General Corporate Purposes

The Offer is a 100% Fresh issue.

IPO Details

IPO Size ₹ 125.43 Crore*
Offer Mix 100% Fresh Issue
Price Band ₹ 161 - ₹ 163
Lot Size 90 Shares (& in multiples thereof)
Face Value ₹ 10
Application Amount Min. ₹ 14,670 (1 lot) | Max. ₹ 1,90,710 (13 lots) [at upper price band]
Listing on NSE & BSE
Registrar Bigshare Services Private Limited
Cut-off time for UPI Mandate Confirmation 08-Nov-2021 (up to 12:00 PM)
* at upper price band

Category Wise Availability

QIB ₹ 62.72 Crore (50% of the Issue Size)
NIB ₹ 18.81 Crore (15% of the Issue Size)
Retail ₹ 43.90 Crore (35% of the Issue Size)
* at upper price band

Indicative Issue Timeline

Activity Date
IPO Opens November 01, 2021
IPO Closes November 03, 2021
Finalization of the basis of allotment November 10, 2021
Unblocking of funds / Initiation of refunds November 11, 2021
Credit of equity shares to Demat accounts November 12, 2021
Listing of equity shares November 15, 2021
Source: Company RHP
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