New Delhi: Primary market investors are eagerly awaiting the listing of Sigachi Industries, which is commanding an astronomical premium in the grey market.
Analysts say the Hyderabad-based manufacturers of microcrystalline cellulose (MCC) is expected to become another Paras Defence Space Technologies, which was listed at a premium of 175 per cent over its issue.
MCC has varied applications in the pharmaceutical, food, nutraceuticals and cosmetic industries. Sigachi Industries has three facilities — one in Hyderabad and the others in Gujarat.
Ahead of its listing on Monday, the scrip was trading at a premium of Rs 220 apiece, which is about 135 per cent over its issue price of Rs 163.
Dealers tracking the grey market said the company had strong and sound fundamentals, robust growth and reasonable valuations. Abhay Doshi, co-founder, UnlistedArena, said the issue was quite small and received a super-strong subscription, which is adding to the attractiveness of the counter. “The company left something on the table for investors. It has been posting steady financial growth. The stock may move from circuit to circuit in the initial few days,” he added.
The Rs 125.43-crore IPO of Sigachi Industries was open for subscription from November 1-3 in the price band of Rs 161-163. The issue was subscribed 101.91 times, with non-institutional investors’ allocation fetching 172.43 times the bid. Institutional buyers’ portion got bids up to 87 times and the retail investors’ portion was subscribed 80.5 times.
Narottam Dharawat of Mumbai-based Dharawat Securities said the company was commanding a bulky premium, thanks to its strong earnings and unique product mix. “The company has been reporting steady earnings, despite the pandemic,” he added.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
Denial of responsibility! NewsAzi is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – [email protected]. The content will be deleted within 24 hours.
