Sigachi Industries shares drop 19% in two sessions as fire leads to suspension of operations

Shares Sigachi Industries fell for second straight session on Tuesday, July 1, in the last two trading sessions the stock has dropped nearly 19% to hit an intraday low of ₹44.71 after fire at its Hyderabad plant led to plant closure for 90 days.

Sigachi Industries on Monday said production at its Hyderabad plant would be paused for around 90 days to restore affected equipment and structures.

In addition to the human impact, the fire incident also caused damage to certain ancillary equipment and civil structures within the facility, it said in a regulatory filing.

At least 12 people died and 34 persons were injured in an explosion at Sigachi Industries' plant Telangana Minister Damodara Raja Narasimha said.

The pharmaceutical company in an exchange filing said, "... on June 30, 2025, at approximately 9:20 AM (IST), a fire incident occurred in the vicinity of our Hyderabad Plant located at Pashamylaram, Phase -1, Medak District."

"The incident has unfortunately resulted in loss of human life, and there may have been individuals who sustained injuries. While the exact number of injuries is currently being confirmed, the well-being of our personnel remains our foremost priority."

A thorough on-ground assessment of the situation is currently in progress, and the company is coordinating with relevant authorities to ensure all safety and support protocols are followed, it said.

"While the core manufacturing infrastructure has suffered damage, the operations at the plant will be temporarily paused for an estimated period of 90 days to facilitate replacement and restoration of affected equipment and structures," the company said.

The company operates three manufacturing facilities for Microcrystalline Cellulose (MCC), one of which is the Hyderabad unit where the incident occurred.

The unit contributes around 6,000 MTPA out of the total operating capacity of 21,700 MTPA, with the balance production coming from our other two facilities located in Gujarat, it added.

As of 2:13 pm, Sigachi Industries shares traded 7.3% lower at ₹45.23, massively underperforming the BSE Smallcap index which was down 0.32%.