Sigachi Industries shares rally over 250% on listing
Microcrystalline cellulose manufacturer Sigachi Industries made a bumper debut on the BSE and NSE today with a stellar premium of 252.76 per cent. The stock opened at Rs 570 on the NSE against issue price of Rs 163 and Rs 575 on the BSE.
The Rs 125.43-crore public issue had seen an overwhelming response from investors. It had received bids for 54,89,47,440 shares against 53,86,500 shares on offer. The portion for non-institutional investors was subscribed 172.43 times, those meant for Qualified Institutional Buyers (QIBs) 86.51 times and Retail Individual Investors (RIIs) 80.49 times. Price range for the offer was at Rs 161-163 per share.
Manoj Dalmia, Founder and Director, Proficient Equities, said that investors may book profits as the gains are more than 250 per cent. He said that investors can expect a further increase in price in the coming weeks if earnings are positive.
“Sigachi Industries shares have made a dream debut at Dalal Street today by delivering around 250 per cent listing gain to those who got Sigachi shares through allotment. Such lucky bidders should book 50 per cent profit and recover their principal and keep the rest 50 per cent stocks in their portfolio. They should hold Sigachi Industries shares for the one month target of Rs 888 maintaining stop loss at Rs 530 per share," Ravi Singhal, Vice Chairman at GCL Securities, said.
The amount raised through the public issue will be used for the expansion of existing manufacturing facilities at Dahej as well as Jhagadia in Gujarat and for general corporate purposes.
The Hyderabad-based firm is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry and has varied applications in food, nutraceuticals, and the cosmetic industries. It carries out its operations from three manufacturing units situated at Hyderabad, Jhagadia, and Dahej in Gujarat.
