NS Initial Public Offering (IPO) Microcrystalline cellulose maker Sigachi Industries got 101.91 times subscription on the last day of the offer on November 3 last week. The IPO received bids for 54,89,47,440 shares, while the 53,86,500 shares on offer opened on November 1.
The basis for the share allotment is likely to be finalized this week on Wednesday, November 10, 2021, and the equity shares are expected to be deposited on Friday, November 12 on the bidders who received the allotment. Bidders can check the Sigachi Industries IPO allotment on the Registrar Bigshare Services Private Limited website or BSE website.
As per market observers, the shares of Sigachi Industries remain stable in the gray market and are commanding a premium (GMP) ₹180 today. The shares of the company are expected to be listed on the major stock exchanges NSE and BSE on November 15, 2021.
The IPO of the Hyderabad-based maker of cellulose-based excipients consisted of a fresh issue of 7.70 million shares from an earlier plan of 2.84 million shares.
Sigachi Industries is engaged in the manufacturing of Microcrystalline Cellulose (MCC), which is widely used in the pharmaceutical industry as an adjuvant for finished supplements and has various applications in the food, nutraceuticals and cosmetic industries. It operates from three manufacturing units located at Hyderabad, Jhagadia and Dahej in Gujarat.
The proceeds from the issue will be used for expansion of MCC’s production facilities at Dahej and Jhagadia in Gujarat. This expansion will add 3,600 MTPA of capacity at Dahej and Jhagadia facility, taking its capacity to 7,890 MTPA and 5,760 MTPA respectively.
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