Sigachi Industries shares rally 20% after CEO gets bail in factory blast case

Sigachi Industries blast site

• Sigachi Industries shares rose 20% after CEO Amit Raj Sinha was granted bail.
• CEO granted bail after last year's Telangana factory explosion killed 40 people
• Company vows safety upgrades, support for affected families and employees

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The shares of Sigachi Industries rallied 20 percent on February 4 after the company announced that Telangana High Court has granted bail to its managing director and CEO Amit Raj Sinha in connection to a massive explosion at its factory last year that killed around 40 people last year.

The shares of the company rose to Rs 24.78 apiece on Wednesday, extending gains for the fourth consecutive session.

Sigachi Industries CEO gets bail:

In a press release, Sigachi Industries said that it continues to extend its full cooperation to the investigating authorities and the judicial process to ensure that the matter is addressed in a fair and transparent manner.

“This has been a period of deep sorrow and strain for everyone affected by the incident, especially the families who lost their loved ones and those who continue to recover from injuries. Our thoughts remain with them,” it said.

“We reiterate our deepest condolences and solidarity with the families of the deceased, those who were injured, and all others impacted by this tragic incident. In addition to fulfilling our responsibilities toward those affected, we remain dedicated to strengthening safety systems and practices across our operations to ensure the ongoing well-being of our workforce and the community,” Sigachi Industries said.

Sigachi Industries explosion:

One of the chemical reactors at the pharma factory located in Telangana's Pashamylaram in Sangareddy exploded during operations on June 30 last year, injuring several employees. In an exchange filing, the company said that the fire which broke out resulted in loss of lives and several injuries.

Sigachi Industries had said that the incident damaged its ancillary equipment and civil structures within the facility. "While the core manufacturing infrastructure has suffered damage, the operations at the plant will be temporarily paused for an estimated period of 90 days to facilitate replacement and restoration of affected equipment and structures," the company said after the incident

Sigachi Industries said the affected plant is one of its three manufacturing facilities for the production of Microcrystalline Cellulose (MCC). "This unit contributes approximately 6,000 MTPA out of our total operating capacity of 21,700 MTPA, with the balance production coming from our other two facilities located in Gujarat," it said. Its other two plants meanwhile continue to operate normally.

Sigachi Industries share price:

Sigachi Industries shares have seen strong downturn since the incident, falling around 50 percent in the past one year. After hitting a 52-week high of Rs 59.59 apiece in June last year, the stock tumbled more than 68 percent in around eight months to hit a fresh 52-week low of Rs 18.92 apiece day before yesterday (February 2).

The company’s market capitalization currently stands at over Rs 900 crore.

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