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Sigachi Industries locked in upper circuit, surges 270% on listing debut. What should you do now?

Sigachi Industries | Manoj Dalmia of Proficient Equities expects a good demand for stock if earnings are positive in the coming weeks.

November 15, 2021 / 03:05 PM IST
 
 
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Microcrystalline cellulose maker Sigachi Industries had a bumper listing on November 15 – way above analysts’ expectations and grey market premium. The stock opened with 252.8 percent premium at Rs 575 on the BSE against an issue price of Rs 163, making the biggest ever listing.

Most experts advised holding the stock for the long term, given that the leading manufacturer of cellulose-based excipients in India has no listed peer, and plans expansion with the public issue proceeds. They also recommended partial profit-booking and to hold the remaining shares for the long term.

The demand was very high for Sigachi Industries shares as it was locked in the 5 percent upper circuit, compared to an opening price of Rs 575. The stock rallied as much as 270.40 percent to trade at Rs 603.75 against an issue price of Rs 163, at 12:46pm.

“Sigachi Industries saw a bumper listing with a gain of approximately 250 percent on the back of robust fundamentals and attractive valuations. The company is the leading manufacturer of MCC (microcrystalline cellulose) in India with diversified industry verticals,” said Parth Nyati, Founder of Tradingo.