According to the figures from National Stock Exchange (NSE), the issue attracted bids for 21,32,80,200 equity shares or 39.60 times the total issue size of 53,86,500 equity shares.
Most analysts are bullish on the issue.
Marwadi Shares and Finance said that considering the FY-21 adjusted EPS of Rs.10.80 on the post-issue basis, the company is going to list at a P/E of 15.10 with a market cap of more than Rs 501 crore, giving it a ‘subscribe’ rating.
The brokerage said, “The company is one of the leading manufacturers of MCC (cellulose-based excipient) in India with a presence across diverse industry verticals and is available at reasonable valuation on an absolute basis.”
Brokerage firm Reliance Securities said that the IPO is valued at 16.6x FY21 and 13.9x FY22 annualized earnings, which looks attractive.
“Sustained demand for MCC from various industries and the expansion programme, earnings growth momentum looks sustainable,” Reliance Securities added. “It has been paying a dividend consistently for the last three years, which bodes well.”
Incorporated in 1989, Sigachi Industries is engaged in the manufacturing of Microcrystalline Cellulose (MCC), which is widely used as an excipient in various industries.
MCC has varied applications in the pharmaceutical, food, nutraceuticals, and cosmetic industries. The company manufactures 59 different grades of MCC at the units situated in Hyderabad and Gujarat.
