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Sigachi Industries Limited IPO : Key Highlights and IPO Details

The company initiated its business operations in 1989. Sigachi manufactures MCC used widely in the Pharma industry. MCC is also used in Pharma, nutrient, food and cosmetic business. The brand name for the company is HiCel and AceCel. Sigachi Industries has 3 manufacturing plants in Gujarat. The annual MCC manufacturing capacity is 13128 MTPA.

IPO DETAILS

Sigachi Industries Limited IPO is set to launch on 1st Nov., 2021. The subscription timeline extends till 3rd Nov, 2021. The size for the IPO is 125.43 Crore Rs.. No Shares are issued through Offer for sale. Shares issued through Fresh issue are worth Rs. 125.43 Crore. The lot size is 90shares and the price range is 161 Rs. – 163 Rs./ share. The company is going to get listed at both the exchanges NSE and BSE. The face value per share is Rs.10 and this is a book built issue. The registrar for the company is BigShare Private Limited.

TABULAR REPRESENTATION OF IPO DETAILS

IPO OPENING DATE	1st Nov, 2021
CLOSING DATE FOR IPO	3rd Nov, 2021
ISSUE TYPE	Book Built Issue
Face Value per share	10 Rs. per share
IPO price band	161 Rs. – 163 Rs.
LOT SIZE	90 shares
MINIMUM ORDER QUANTITY	90 shares
ISSUE SIZE	125.43 Crore Rs.
OFFER FOR SALE	No Issue
FRESH ISSUE	125.43 Crore Rs.
LISTING AT	NSE, BSE
LISTING DATE	15th Nov, 2021

IMPORTANT DATES

IPO OPENING DATE	1st Nov, 2021
CLOSING DATE FOR IPO	3rd Nov, 2021
IPO ALLOTMENT DATE	10th Nov, 2021
REFUNDS	11th Nov, 2021
DEMAT A/C CREDITED ON	12th Nov, 2021
IPO LISTING DATE	15th Nov, 2021

The Sigachi Industries Limited IPO begins for subscription from 1st Nov, 2021. The IPO subscription would continue till 3rd Nov, 2021. The allotment status for the shareholders who applied would come on 10th Nov, 2021. The refunds for the ones who did not get allotment would be initiated on 11th Nov, 2021. The DEMAT accounts of shareholders would be credited on 12th Nov, 2021. The listing of the company would be accompanied on 15th Nov, 2021.

Lead Managers

The lead manager is :

Unistone Capital Private Limited

The minimum lot size for the company is decided at 90 shares. This holding accounts to 14670 Rs.. The maximum lot size is decided at 1170 shares. This amounts to Rs. 190710. Hence the company’s final holdings would be set as :

	Shares	Amount
Minimum	90 shares	14670 Rs
Maximum	1170 shares	190710 Rs

OBJECTIVES FOR THE IPO

The funds can be utilized for General corporate purposes.
Capital requirements for Dahej and Jhagadia Pants in Gujarat. The company is also planning to manufacture CSS through IPO money.

COMPANY FINANCIALS

Particulars (in Million Rs.)	2020-21	2019-20	2018-19
ASSETS	1334	1091	914
REVENUE	1960	1439	1328
NET PROFIT	302	203	190

The assets for the company are increasing at a slow rate. However, given the company size, it is doing great. The assets are increasing and surprisingly the revenue generation from assets is more in valuation. In other words the revenue generated from investments is higher than the investment amount. This shows the high turnover ratio from the company. The profitability is stable and increasing for Sigachi Industries every year. The company has a profit registered for 190 Crore Rs in 2019 and it has increased to 300 Crore Rs now. The company is doing excellent on grounds of profitability and expansion. It is taking planned steps to expand itself and remain highly profitable. Hence one can think to invest in this company for sure. The size of the company may be small but it never deceives to generate returns from its investment.

PROS

The company is highly profitable and generates more revenue than the asset investment.
The financials display a high turnover for limited assets by the company. It is able to generate higher returns from revenue as well. Hence the profit margin is good and consistent for the company.
The company is planning expansion to increase its manufacturing capacity which is a good sign for Sigachi Industries.

CONS

The company is small in size and hence can face problems to expand itself in the open market. One can think of good returns to be achieved this year. However the growth rate would be less given the size at which company is operating.