Sigachi Industries IPO opens on November 1: 10 things to know about the issue, company

Sigachi Industries’ initial public offering will open for subscription on November 1, the third IPO to be available for bids on the day along with Policybazaar and SJS Enterprises. The price band for the issue, which closes on November 3, has been fixed at Rs 161-163 a share. Sigachi Industries that makes cellulose-based excipients is planning to raise Rs 125.43 crore at the upper price band by issuing 76.95 lakh shares.

Here are 10 key things to know about the issue, company:

1) IPO Dates

The offer will open for subscription on November 1 and close on November 3.

2) Offer Details

The company plans to raise up to Rs 125.43 crore from the issue. The company will offer 76,95,000 equity shares as part of the IPO.

3) Price Band and Fund Raising

A price band of Rs 161-Rs 163 per equity share has been fixed. The company plans to raise Rs 125.43 crore at the upper end of the price band.

4) Objectives of the Public issue

Sigachi Industries intends to utilise issue proceeds for expansion of production facilities for microcrystalline cellulose (MCC) at Dahej, Gujarat; expansion of production facilities for MCC at Jhagadia, Gujarat; and general corporate purposes.

5) Lot Size and category-wise reserved portion

The IPO market lot size is 90 shares. A retail investor, who can invest up to Rs 2 lakh, can apply up to a maximum of 13 lots (1,170 shares or Rs 1,90,710).

6) Book running lead managers

Unistone Capital is the sole book-running lead manager to the issue.

7) Registrar

Bigshare Services Private Ltd. is the registrar of the public issue.

8) Company Profile

The company is engaged in the manufacturing of microcrystalline cellulose, a polymer that is widely used for finished dosages in the pharmaceutical industry. At present, the company manufactures 50 different grades of MCC at its manufacturing units, situated at Hyderabad and Gujarat, under the brand named HiCel and AceCel.

9) Financials

The operating profit margin stood at 20.13 percent in FY21 as against 17.8 percent in FY20, a growth of about 233 bps. The net profit margin declined by over 300 bps to 15.4 percent in FY21.

10) Promoters and Management

Promoters Rabindra Prasad Sinha, Chidambarnathan Shanmuganathan, Amit Raj Sinha and RPS Projects & Developers hold 53.32 percent stake in the company. The shareholding of promoter and promoter group is at 64.64 percent.

The public shareholding will increase to 51.5 percent post the issue from the existing 35.4 percent.

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