New Delhi: Sigachi Industries Ltd (SIL), manufacturer of cellulose-based excipient, made a spectacular debut in the stock market as the shares got listed at Rs 575, a 253 per cent premium over its issue price of Rs 163 per share on the Bombay Stock Exchange (BSE).
On the National Stock Exchange (NSE), the stock opened at Rs 570, a 250 per cent higher than its issue price. On BSE, the stock was locked at the maximum 5 per cent upper circuit at Rs 603.75 at 10:09 am; a whopping 270 per cent gain over its issue price while the stock got sealed at Rs 598.50, a 267 per cent higher than the issue price on NSE.
The initial public offering (IPO) of SIL had received a stellar 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, according to the data.
Started in 1989, Sigachi Industries manufactures 59 different grades of Microcrystalline Cellulose (MCC). Spread across Hyderabad and Gujarat, the company is counted as the leading manufactures in India with an aggregate installed capacity of 11,880 MTPY. It has witnessed continuous growth over a period of 30 years with three multi-locational manufacturing facilities and has a consistent focus on delivering a premium quality product.
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, modified cellulose used as an excipient at Kurnool, Andhra Pradesh amounting Rs 32.30 crore and balance for general corporate purposes.