The initial public offering (IPO) of microcrystalline cellulose manufacturer Sigachi Industries received a whopping 101.91 times subscription on the last day of the offer on Wednesday. The IPO received bids for 54,89,47,440 shares against 53,86,500 shares on offer that had opened on November 1.
As per market observers, Sigachi Industries shares are available at a premium (GMP) of ₹180 in the grey market. The shares of the company are expected to list on leading stock exchanges NSE and BSE on November 15, 2021.
The finalization of the basis of share allotment is likely to take place next week on Wednesday, November 10, 2021, and the equity shares are expected to be credited on bidders who got the allotment, on Friday, November 12. The bidders can check the allotment on IPO's registrar Bigshare Services Private Limited website here or on BSE website here.
The portion for non-institutional investors was subscribed 172.43 times, those meant for Qualified Institutional Buyers (QIBs) 86.51 times and Retail Individual Investors (RIIs) 80.49 times. Price range for the ₹125 crore-offer was at ₹161-163 per share.
The Hyderabad-based firm is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry and has varied applications in food, nutraceuticals, and the cosmetic industries. It carries out its operations from three manufacturing units situated at Hyderabad, Jhagadia, and Dahej in Gujarat.
The proceeds from the issue will be used for expansion of production facilities of MCC at Dahej and Jhagadia in Gujarat. Unistone Capital is the sole book-running lead manager to the issue. The expansion will add 3,600 MTPA capacity to the Dahej and Jhagadia facility, augmenting its capacity to 7,890 MTPA and 5,760 MTPA, respectively.
Sigachi Industries had filed draft papers with capital markets regulator Sebi in early August to raise funds through an initial share-sale.
