The Rs 125.43 crore IPO kicked off for subscription on Monday and can be subscribed till Wednesday, November 3.
According to the figures from National Stock Exchange (NSE), the issue attracted bids for 2,59,30,170 equity shares as of 1.25 pm, against total issue size of 53,86,500 equity shares.
The quota of retail bidders was subscribed 5.99 times, whereas a portion of HNI investors was subscribed merely 6 per cent. However, institutional investors did not make any bids till the time of writing this report, NSE data suggested.
Despite not being the talk of the town, analysts covering the issue are bullish on the company, giving it a thumbs up.
Marwadi Shares and Finance said 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.”
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.
Brokerage firm Reliance Securities said 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. It has been paying a dividend consistently for the last three years, which bodes well,” Reliance Securities added.
