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Sigachi Industries makes bumper market debut, shares list at 252% premium on bourses

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A strong response from investors, robust financials, high premium in the grey market led to a bumper listing for Sigachi Industries IPO on Monday. The stock opened for trading at Rs 575 on the BSE compared with its issue price of Rs 163, 253 percent higher. On the National Stock Exchange, Sigachi Industries shares opened for trading at Rs 570.

Sigachi Industries makes bumper market debut, shares list at 252% premium on bourses
A strong response from investors, robust financials, high premium in the grey market led to a bumper listing for Sigachi Industries IPO on Monday. The stock opened for trading at Rs 575 on the BSE compared with its issue price of Rs 163, 252 percent higher. On the National Stock Exchange, Sigachi Industries shares opened for trading at Rs 570.
The shares of Sigachi Industries were trading at Rs 603.75, higher by 270 percent at 10.15 am on the BSE. Post listing, the market capitalisation of the company stood at Rs 1,856 crore, according to BSE data.
The grey market showed a strong listing for Sigachi Industries a day prior to the listing with a Rs 220 premium per share.
Rahul Sharma, Co-Founder, Equity99,  said long-term investors are advised to remain invested considering the niche product offering of the company. "However, considering listing premium short term investors are advised to book their profits as their capital is almost 3x in 10 to 15 days. For fresh entry, advice would be to wait for declines & not to enter fresh at the listing gains of 267 percent," Sharma added.
Sigachi Industries initial public offering (IPO) received a stellar response from investors when it opened for subscription earlier this month. Sigachi Industries IPO was subscribed 101.90 times. Investors put in bids for 54.88 crore equity shares against the IPO size of 53.86 lakh equity shares.
The qualified institutional buyers (QIBs) subscribed to the issue 86.5 times while the portion set aside for retail investors was booked 80.47 times. HNI investors’ portion was subscribed 172.43 times.
The price band for the issue of the microcrystalline cellulose (MCC) manufacturer, Sigachi Industries, was fixed at Rs 161-163 a share.
The allotment of the issue took place on November 10. Sigachi industries plans to use the money from the IPO for expansion of production capacity purposes.
The funds will be utilised to expand production at their Dahej and Jhagadia units in Gujarat. While Rs 2,815.82 lakh will be used in Dahej, Rs 2,924.13 lakh will be used in Jharjharia for the expansion. The company also plans to use it for general corporate purposes.
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