The initial public offering (IPO) of Hyderabad-based Sigachi Industries, which opened for subscription on November 1, will conclude on Wednesday after seeing a strong demand during the three-day period.
The company has set price band of ₹161-163 for each share for its three-day sale. In the grey market, Sigachi shares were commanding a premium (GMP) of ₹150.
The IPO of Sigachi Industries consisted of a fresh issue of 7.70 million shares, significantly above the earlier plan of 2.84 million shares. The company is looking to raise a capital of ₹125.43 crore from the subscriptions.
The company plans listing on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on November 11.
Sigachi Industries is engaged in the manufacturing of microcrystalline cellulose (MCC), a binder agent widely used in the pharmaceutical industry. The company carries out its operations from three manufacturing units–the two in Gujarat and one in Hyderabad.
Even as subscription for the IPO of Sigachi Industries closes today, there is still a window of a few hours left still for investors to place bids.
Let’s look how the IPO performed so far since opening on Monday:
On Monday, the first day when bidding for the IPO started, Sigachi Industries IPO was subscribed 9.5 times.
On Tuesday, the second day after the bidding for the IPO opened, Sigachi Industries received 23.12 times subscription.
While qualified institutional buyers (QIBs) category registered 82% subscription, that of non institutional investors bid 16.99 times and retail individual investors (RIIs) 38.49 times.
Figures available on National Stock Exchange (NSE) showed that the issue attracted bids for 12,45,28,680 equity shares against the total issue size of 53,86,500 equity shares.
According to brokerage house Reliance Securities, “The IPO is valued at 16.6x FY21 and 13.9x FY22 annualised earnings, which looks attractive. While there is no listed peer for the company in MCC manufacturing, SIL maintains a leadership status in MCC product, with a market share of over 65%.”
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