Sigachi Industries Limited

About the company

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

Financial performance (₹ Cr)

IPO Roadmap / Timeline

1. IPO Opens

   Completed
   01 Nov 2021

   Bidding starts for all investor categories

2. IPO Closes

   Completed
   03 Nov 2021

   Last day to place your bid

3. Basis of Allotment

   Completed
   03 Nov 2021

   Share allotment finalised

4. Refund Initiation

   Completed
   11 Nov 2021

   Refunds credited for non-allottees

5. Credit to Demat

   Completed
   10 Nov 2021

   Allotted shares credited to demat account

6. Listing on Exchange

   Completed
   15 Nov 2021

   Shares list on NSE / BSE

Post-close dates are indicative as per SEBI T+3 listing framework and may change per registrar updates.