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Sigachi Industries IPO

Incorporated in 1989, Sigachi Industries is one of the leading manufacturers of pharmaceutical excipients in India. The company is well-known for its Microcrystalline Cellulose, used in a host of medicinal, food, cosmetics, and nutraceuticals purposes. Sigachi Industries manufactures MCCs of different grades starting from 15 to 250 microns. Additionally, the company markets these products under the brands AceCel, and HiCel. Currently, the company has manufacturing units in Gujarat and Hyderabad capable of producing MCCs of 59 grades. It also has an in house research and development team capable of creating new products. Sigachi Industries has 3 manufacturing units, one in Hyderabad and two in Gujarat. As of March 2021, the company has a total manufacturing capacity of 13,128 MTPA spreading across 3 locations.

Furthermore, Sigachi Industries exports about 60% of its total production in markets spreading over more than 40 countries across the globe. Also, the company has a subsidiary in the USA, operating under the name of Sigachi US Inc.

Sigachi Industries IPO Objectives

- To expand the production capacity of Dahej unit in Gujarat by investing Rs. 28.15 crores

- To increase the production capacity of Jhagadia facility by investing Rs. 29.24 crores

- Meeting the capital expenditure requirements to produce CCS at the proposed unit by investing Rs. 32.29 crores

- Meeting general corporate purposes

Sigachi Industries IPO - Details

The speciality Microcrystalline Cellulose manufacturer is planning to gather about Rs. 125 crores through an initial public offering. This IPO will include 7,695,000 fresh issue equity shares at a face value of Rs. 10 per share. This IPO will go live on 1 November 2021 and close on 3 November 2021. You can find the entire IPO timeline in the table mentioned below. Sigachi Industries have appointed Saffron Capital Advisors Private Limited as its book running lead manager. Additionally, Bigshare Services Private Limited is the registrar of this public issue.

Opening Date

Nov 1, 2021

Closing Date

Nov 3, 2021

Price Band

₹161 to ₹163

per equity share

Issue Size

₹ 125.43 Cr

Face Value

₹ 10

per equity share

Market Lot

90 Shares

Opening Date

Nov 1, 2021

Closing Date

Nov 3, 2021

Price Band

₹161 to ₹163

per equity share

Issue Size

₹ 125.43 Cr

Face Value

₹ 10

per equity share

Market Lot

90 Shares

Listing at NSE, BSE

Sigachi Industries IPO Important Dates

IPO Open Date Nov 1, 2021
IPO Close Date Nov 3, 2021
Basis Of Allotment Date Nov 10, 2021
Initiation Of Refunds Nov 11, 2021
Credit Of Shares To
Demat ACcount
Nov 12, 2021
IPO Listing Date Nov 15, 2021

Why Should You Invest in Sigachi Industries IPO?

Here are some reasons to invest in the public issue of Sigachi Industries –

1. Sigachi Industries is a leader in its business vertical, i.e. producing Microcrystalline Cellulose.
2. The company has been in operations for 30 years, serving a clientele spreading across the world.
3. Along with an experienced management team, it also houses a strong research and development team helping it to cater to new demands.
4. With the IPO, Sigachi Industries plan to increase the production capacity of its units in Dahej and Jhagadia by 3,600 MTPA. It will increase their capacity to 7,890 MTPA, and 5,760 MTPA, respectively.
5. Sigachi Industries has a diverse product portfolio, producing MCCs of 59 grades.

Financial highlights

Financial year Total assets Total income Total expenses Profit after tax
March 2020 Rs. 10,914.39 Rs. 14,394.90 Rs. 11,860.51 Rs. 2,031.55
March 2019 Rs. 9,146.25 Rs. 13,287.77 Rs. 10,814.93 Rs. 1,901.27
March 2018 Rs. 7,228.82 Rs. 10,378.49 Rs. 9,418.19 Rs. 692.24
** Note: Rs. mentioned in lakhs

How to apply for Sigachi Industries IPO?

You can apply for the Sigachi Industries IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book Sigachi Industries IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for Sigachi Industries IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

Sigachi Industries – Noteworthy Highlights

Here are some noteworthy highlights associated with the public issue of Sigachi Industries that prospective investors should keep in mind before investing –

1. Sigachi Industry has 30+ years of experience with multiple manufacturing units in India and 15+ centres across the globe.

2. The company has the capacity to produce 50+ different grades of MCC products.

3. Also, it has more than 200 clients across 40 countries, and 60% of Sigachi Industries’ products get exported.

4. As of March 2021, the company has a total manufacturing capacity of 13,128 MTPA spreading across 3 locations.

Sigachi Industries IPO - SWOT Analysis

strengths

Strengths

  • Industry experience: Sigachi industries have been in the industry for 3 decades. Resultantly, a strong and experienced management team leads the organisation.
  • Product portfolio: It can produce more than 50 grades of MCC products, which helps it to curate to a wide range of demands.
  • Worldwide presence: Sigachi Industries has a worldwide presence with clients in more than 40 countries. Also, its export business is about 60% of its total business.
Weaknesses

Weaknesses

  • Stretched liquidity position: High inventory and receivables of Sigachi Industries have stretched its liquidity position in the past year, as reflected in its utilisation of cash credit limit.
Opportunities

Opportunities

  • A growing market: India’s MCC market is estimated to reach $115 million with a 4-year CAGR of 6.3%. It opens up a huge scope of opportunities for the organisation.
Threats

Threats

  • Significant reliance on exports: Sigachi Industries relies on its export business significantly, which may suffer in the case of export policies changes.
  • Competition from the unorganised market: India’s unorganised chemical manufacturing market puts significant pressure on Sigachi Industries’ margins. 
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Industry experience: Sigachi industries have been in the industry for 3 decades. Resultantly, a strong and experienced management team leads the organisation.
  • Product portfolio: It can produce more than 50 grades of MCC products, which helps it to curate to a wide range of demands.
  • Worldwide presence: Sigachi Industries has a worldwide presence with clients in more than 40 countries. Also, its export business is about 60% of its total business.

Weaknesses 

  • Stretched liquidity position: High inventory and receivables of Sigachi Industries have stretched its liquidity position in the past year, as reflected in its utilisation of cash credit limit.

Opportunities 

  • A growing market: India’s MCC market is estimated to reach $115 million with a 4-year CAGR of 6.3%. It opens up a huge scope of opportunities for the organisation.

Threats 

  • Significant reliance on exports: Sigachi Industries relies on its export business significantly, which may suffer in the case of export policies changes.
  • Competition from the unorganised market: India’s unorganised chemical manufacturing market puts significant pressure on Sigachi Industries’ margins. 

Competitor Analysis: Market Peers

Here is an overview of how the listed market peers of Sigachi Industries are performing on 27 October 2021 –

Competitor Sector P/E Market Cap. (in INR and crores) Dividend Yield
Tatva Chintan Pharma Chem Ltd 78.96 Rs. 6,028 NA
Clean Science and Technology Ltd 78.96 Rs. 22,676 NA
GFL Ltd 50.76 Rs. 888 NA
Vishnu Chemicals Ltd 70.56 Rs. 936 0.13
Sreechem Resins Ltd 53.45 Rs. 13 NA
Gujarat Alkalies & Chemicals Limited 34.91 Rs. 5,676 1.04
TCM Limited 57.78 Rs. 27 NA
Laxmi Organic Industries Ltd 50.76 12,508 0.11
** Note: Market cap is mentioned in crores

Sigachi Industries IPO FAQs

Can I apply for this Sigachi Industries IPO without using a UPI ID?

Yes, you can apply for this Sigachi Industries IPO without using a UPI ID. However, in that case, you take the assistance of the ASBA process offered by a bank. Additionally, if you do not have a UPI ID, you can create one without any hiccups. Simply refer to the UPI handles approved and specified on the NPCI list.

What is the process of applying for the Sigachi Industries IPO using the Angel One App?

To apply for this IPO of Sigachi Industries, follow the steps mentioned below –
Step 1: Visit the ‘investment opportunities’ segment on the Angel One mobile app
Step 2: Visit the ‘IPOs and FPOs’ section and enter the needed information
Step 3: Provide your NPCI approved UPI handle
Step 4: Click on ‘invest’ and enter your bid for this public offering of Sigachi Industries

How to create a UPI ID using the BHIM App?

You can generate a UPI ID using the BHIM by following the below-mentioned steps –
Step 1: Download and install the BHIM UPI app on your smartphone
Step 2: Authenticate your mobile number and generate a PIN or password required to use this app
Step 3: Select a bank from the list of financial institutions mentioned in NPCI’s approved list
Step 4: This BHIM UPI App will then collect your bank account information automatically
Step 5: In case you have multiple bank accounts, select one that you want to register and link with this app
Step 6: Set up a personal UPI ID for security reasons
You can then see your UPI ID later in the ‘Profile’ section of this app.

How swift can I expect to receive a UPI mandate request after submitting bids for this IPO?

You can expect to get a UPI mandate request within 15 to 20 minutes of placing your bid for Sigachi Industries IPO. However, you face delays in this process, owing to a series of different reasons.

What is the process of accepting a mandate request for this IPO?

You can accept the mandate request of this Sigachi Industries IPO by using a UPI app. To learn how this process works, and access a step-by-step guide, click here.

Is it mandatory to revert to a UPI mandate request immediately?

Yes, it is imperative to revert to a UPI mandate request as soon as you receive it. Nonetheless, the approval window of this mandate request remains open from the closing bell of the previous working day to 12 noon of the following working day.

Even though I have accepted the IPO; its position on the Angel One app is still displaying pending. What is the reason for that?

The reason behind the Angel One App displaying a pending status regarding the acceptance of IPO mandate request is that this app does not display real-time updates. Thus, you see the pending status. Nevertheless, if you have accepted this UPI mandate request, you can find its current status in the order book of the respective IPOs you are applying for.

I cannot apply for this public issue of my existing UPI handle. What can be the reason?

If you cannot apply for this Sigachi Industries IPO through your current UPI ID, it is because your current UPI handle does not have NPCI’s approval. Nonetheless, you can refer to the list of apps that have NPCI’s approval to extend UPI service and then register with any of them to apply for this IPO.

What is a cut-off price? Can I apply at this price point?

The cut-off price is a price point at which shares of Sigachi Industries and shares of other companies will be listed on the stock market. This price point is pre-set during the allotment stage of a public issue. Additionally, if you apply at this price point, it means you are willing to place a bid for this public offering of Sigachi Industries at this price point. Additionally, applying at a cut-off price also betters your chance of getting an allotment.

I cannot find my UPI ID in the dropdown menu of the Angel One App while applying for IPO. What is the reason?

In case you cannot find your UPI ID in this dropdown menu, it means that your existing UPI ID does not have NPCI’s approval. In that case, you can just create a substitute one using any UPI handle approved and mentioned under the NPCI List.

Can I use a bank account not linked with the Angel One app to apply for this public issue of Sigachi Industries?

Yes, you can apply for this initial public offering of Sigachi Industries through a bank account not connected with the Angel One App. In that case, this bank account should be in your name.

Is it possible to use current accounts to submit bids for this IPO of Sigachi Industries?

No, it is not possible to use current accounts to apply for the public issue of Sigachi Industries. Banks do not approve any IPO application, be it Sigachi Industries or any other made through current accounts. Thus, it is best to apply for public issues through savings accounts. Additionally, you can get in touch with your respective banks for additional information.

Can I use my minor daughter’s bank account to bid for the public issue of Sigachi Industries?

No, you cannot use your minor daughter’s bank account to submit bids for Sigachi Industries IPO or any other public issues. Also, the Angel One App has no provision regarding this, where you can utilise your minor daughter’s bank account to apply for IPOs. On the other hand, a minor can apply for an IPO using the ASBA process through a bank.

Can I utilise my Hindu Undivided Family account to apply for the Sigachi Industries IPO?

No, you cannot use your Hindu Undivided Family account to apply for any IPOs through the Angel One platform. However, if you use the ASBA process specified by banks, then you can take the help of this account.

Can I alter my bid for the Sigachi Industries IPO after confirming its final application?

Yes, you can alter the lot size and the UPI ID of your Sigachi Industries IPO, even after confirming your bid for it. However, remember that any alterations that you make after approving a UPI mandate request will be counted as a new bid. As a result, the banks will block the needed funds once more, alongside your current application. Moreover, you will get a fresh UPI mandate request for this new bid, just like before.

Can I submit more than one bid for the initial public offering of Sigachi Industries using a single PAN?

No, you cannot submit more than one bid for the Sigachi Industries IPO, or any other public issue using a single PAN. The reason behind this is if you submit multiple bids for an IPO using a single PAN, you will not get approval for any of them. Hence, you will fail to secure allotment for any of the IPOs that you have applied for.

Can NRIs apply for this Sigachi Industries IPO through the Angel One App?

No, NRIs cannot use the Angel One app to submit bids for this Sigachi Industries IPO. But, they can always take help of the ASBA process (Application Supported by Blocked Amount) through their respective banks to try and get an allotment for this IPO.

I have finished the application for IPO, but the funds are not debited yet. What is the reason?

A point to remember here is that banks do not debit funds required for an IPO subscription right after you submit the application. Instead, they will freeze the due amount, and once you get an allotment, they will debit the required funds. Whereas, if you cannot secure the allotment or your UPI mandate request expires, they will release these funds.

How to ensure allotment for this public issue of Sigachi Industries?

It is not possible to ensure the allotment of any IPO, be it of Sigachi Industries or any other. In case of oversubscription, which is a regular affair, shares are distributed using a lottery system. Thus, it is not possible to ensure the allotment of any IPO.
However, you should keep in mind that the Angel One platform only permits you to apply for an initial public offering, but it does not offer any guarantee regarding allotment. However, you can improve your chances by following some tips –
●Using a Demat Account linked with your PAN
●Applying at the cut-off price
●Confirm that your bank account and UPI ID are linked through a single PAN, and failing to keep that can lead to rejection. For instance, person X has applied for the Shriram Properties IPO via his Demat Account but person Y’s UPI ID. In such cases, the application can get rejected due to –
●Person Y’s UPI ID is not linked with X’s PAN
●Person X’s Demat account is not linked with Y’s bank account

What are the likely reasons behind the rejection of my IPO application for Sigachi Industries?

Possible reasons for your Sigachi Industries IPO application getting rejected can be –
●Entering a wrong UPI PIN while approving a UPI mandate
●Failing to ensure that your UPI ID, bank account, and Demat account are linked with the same PAN
For example, in case you use your friend’s UPI ID to make payment and personal Demat account to apply for this public issue. In that case, your application can get rejected –
●If your PAN and your friend’s UPI ID are not linked
●If your Demat account is not connected with your friend’s bank account

Do I need to pay any additional charges to apply for the Sigachi Industries IPO?

No, you need not pay any additional charges to apply for an IPO using the Angel One app or platform.

How to find my UPI ID in the Angel One mobile app?

You can find your UPI ID in the ‘profile’ section of any UPI app.

What is the expected time needed to block or unblock the funds of an IPO subscription?

After approving a UPI mandate request, the funds required for that public issue will be blocked. However, these funds will be credited only if you fail to get an IPO allotment, or the UPI mandate expires. But, if the funds are not unblocked even after this, get in touch with your respective banks for further clarification.

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