Sigachi Industries shares made a stellar stock market debut on Monday. The stock opened for trading at Rs 575 on the BSE compared with its issue price of Rs 163 per shares, marking an upside of 3.52 times or 253 per cent.
On the National Stock Exchange, it opened for trading at Rs 570, marking an upside of Rs 407 from the issue price. The stock rose as much as 270 per cent from the issue price to hit an intraday high of Rs 603.75 per share, reported NDTV.
Sigachi IPO received a whopping 101.91 times subscription on the last day of the offer. The company 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.
The company received bids 54.89 crore bids for 53.86 lakh shares on the offer. Sigachi Industries raised Rs 125.43 crore at the upper price band by issuing 76.9 lakh shares. The company manufactures microcrystalline cellulose (MCC), a polymer widely used for finished dosages in the pharmaceutical industry.
This is What brokerage houses had said about the company market debut:
At the upper end of the IPO price band, Sigachi Industries is being offered at price to equity multiple of 15.1 times to its trailing 12-month earnings, with a market capitalization of Rs 501 crore.
Given that the company is one of the leading manufacturers of Microcrystalline Cellulose in India with over 30 years of experience, pan-India and international market presence, experienced management team and investment-led future growth with a high return on net worth (RoNW) of 32.12 per cent in the previous financial year and reasonable valuations we give this IPO a "Subscribe" rating,"
Marwadi Shares and Finance
The financial firm said considering the FY-21 adjusted EPS of Rs 10.80 on a post-issue basis, the company is going to list at a P/E of 15.10 with a market cap of more than Rs 501 crore. The brokerage has given it a subscribe rating. "The company is one of the leading manufacturers of MCC (cellulose-based excipient) in India with a presence across diverse industry verticals and is available at reasonable valuation on an absolute basis."