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Sigachi Industries Limited

Sigachi Industries Limited

listed
₹14,490Min. investment

Sigachi Industries Limited IPO Details

Price range₹161 – ₹163
IPO type
Regular
Lot size90 shares
Issue size₹125Cr
RHP/DRHP
Read

Sigachi Industries Limited Timeline

  1. Bid start
    1 Nov 2021
  2. Bid end
    3 Nov 2021
  3. Allotment
    3 Nov 2021
  4. Release of funds
    11 Nov 2021
  5. Demat transfer
    10 Nov 2021
  6. Listing
    15 Nov 2021
Incorporated in 1989, Sigachi Industries Limited is one of the largest manufacturers of Microcrystalline Cellulose (MCC) in India. **** MCC is primarily widely used as an excipient (carrier or supporting material) for finished dosages in the pharmaceutical industry.  Here’s all you need to know about this IPO.
Reasons for going public
  • Expansion of production facilities for microcrystalline cellulose at Dahej and Jhagadia in Gujarat
  • To manufacture Croscarmellose Sodium at Kurnool in Andhra Pradesh
  • General corporate purposes
Company Fundamentals
Top shareholders of the company are:
Company Financials
Here’s a look at the company’s financial status:
Company Overview
Hyderabad-based Sigachi Industries manufactures microcrystalline cellulose (MCC), which is used as excipient (binders, fillers) in pharmaceutical, supplement and food industries. The company has three manufacturing locations in India and is one of the leading MCC makers in India.
Industry outlook
The global market for MCC is expected to grow at a CAGR of 7.2% between 2020-2025 and reach $1.4 billion (about ₹10,500 crore) by 2025. The growth is expected to be driven by the rising demand for packaged food and rising demand for pharmaceutical, cosmetic and personal care products. Europe is currently the largest market for MCC and accounts for nearly one third of the market share. India is a relatively smaller market with a size of about ₹300 crore. Sigachi derives more than 70% of its revenues from exports.
Competitive strengths
  • Well-experienced and highly skilled management team with a strong background in the excipient and pharmaceutical industry
  • A long-standing market presence and the superior quality of products with outstanding quality control and quality assurance team
  • Extend services to multiple sectors, including but not limited to pharmaceuticals, nutraceuticals, food and cosmetics
Risks
  • Reliance on the demand from the pharmaceutical industry for a significant portion of the revenue 
  • No long-term agreements with suppliers of raw materials
  • Dependence on few customers for significant portion of the revenue
  • Instances of delays or defaults in customer payments could increase working capital investment
  • Depleting forest reserves may affect raw material availability - mainly wood pulp

Checklist

Risk analysis
Debt to Equity ratio
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Sigachi Industries Limited Contact Details

Company NameSigachi Industries Limited

How to apply for Sigachi Industries Limited?

  1. Step 1

    Log in to your Upstox account to access IPO investments. Next, select the current IPO section.

  2. Step 2

    Specify IPO details. Enter the number of lots and the price you wish to apply for.

  3. Step 3

    Enter UPI ID. After entering your UPI ID, click submit. This will place your bid with the exchange.

  4. Step 4

    Mandate Notification. Your UPI app will receive a mandate notification to block funds.

  5. Step 5

    Approve Request. Your funds will be blocked once you approve the mandate request on your UPI.

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