According to the figures available on National Stock Exchange (NSE), the issue attracted bids for 6,35,52,870 equity shares against the total issue size of 53,86,500 equity shares.
The quota of retail bidders was subscribed 21.21 times, while the portion of HNI investors was subscribed 5.27 times. The institutional investors’ quota received 80 per cent bids so far, NSE data suggested.
Analysts covering the issue are largely bullish on the IPO.
Marwadi Shares and Finance said considering the FY-21 adjusted EPS of Rs 10.80 on a 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 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,” it added.
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.
