Sigachi Industries IPO subscribed 101.90 times on final day bidding, retail portion booked 80.47 times

The initial public offering (IPO) of the chemical-maker Sigachi Industries had been subscribed 101.90 times on November 3, the final day of bidding.

Investors have put in bids for 54.88 crore equity shares against the IPO size of 53.86 lakh equity shares.

Retail investors had bought 80.47 times the shares set aside for them.

The portion reserved for non-institutional investors has been subscribed 172.43 times, while Qualified Institutional Buyers (QIBs) had bid 86.51 times of their lot.

Sigachi Industries, which makes cellulose-based excipients, plans to raise Rs 125.43 crore at the upper price band by issuing 76.95 lakh shares.

The price band for the issue, which closes on November 3, has been fixed at Rs 161-163 a share.

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

Unistone Capital is the sole book-running lead manager to the issue, while Bigshare Services Private Ltd is the registrar of the public issue.

The company manufactures microcrystalline cellulose (MCC), a polymer widely used for finished dosages in the pharmaceutical industry. The company manufactures 50 grades of MCC at its manufacturing units in Hyderabad and Gujarat, under the brands HiCel and AceCel.

The company's 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.

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