Hyderabad-based Sigachi Industries, one of the leading manufacturers of cellulose-based excipients in India, has filed the draft red herring prospectus with capital market regulator SEBI.
The company plans to raise approximately Rs 60 crore via public issue, sources familiar with development told Moneycontrol.
The IPO consists of a fresh issue of up to 28,41,500 equity shares, representing 27 percent of the fully diluted post-issue paid-up equity share capital of company.
Incorporated in 1989, the company is engaged in the manufacturing of microcrystalline cellulose (MCC), which is widely used for finished dosages in the pharmaceutical industry. The inert non-reactive, free flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and the cosmetic industries.
Presently, the company manufactures 50 different grades of MCC at its manufacturing units, situated at Hyderabad and Gujarat. The major grades of MCC manufactured and marketed by company are branded as HiCel and AceCel.
Sigachi Industries intends to utilise issue proceeds for expansion of production facilities for microcrystalline cellulose (MCC) at Dahej, Gujarat; expansion of production facilities for microcrystalline cellulose (MCC) at Jhagadia, Gujarat; and general corporate purposes.
The proposed expansion will add 3,600 MTPA capacity each to the Dahej and Jhagadia facilities, taking the total capacity to 7,890 MTPA and 5,760 MTPA respectively.
Saffron Capital Advisors has been appointed as the book running lead manager to the issue. Equity shares are proposed to be listed on the BSE and NSE.