{"id":13685,"date":"2021-11-01T18:37:15","date_gmt":"2021-11-01T13:07:15","guid":{"rendered":"https:\/\/www.fintoo.in\/blog\/?p=13685"},"modified":"2021-11-01T18:37:17","modified_gmt":"2021-11-01T13:07:17","slug":"ipos-s-j-s-enterprises-ltd-sigachi-industries-ltd","status":"publish","type":"post","link":"https:\/\/blog.fintoo.in\/blog\/ipos-s-j-s-enterprises-ltd-sigachi-industries-ltd\/","title":{"rendered":"IPO’s -S.J.S Enterprises Ltd & Sigachi Industries Ltd"},"content":{"rendered":"\n

Sigachi Industries Ltd:  (Subscribe)<\/u><\/strong><\/h2>\n\n\n\n
Issue Size- 76,95,000 shares<\/td>Issue Open\/Close – Nov 01\/Nov 03, 2021<\/td><\/tr>
Price Band (Rs) 161-163<\/td>Issue Size- Rs 1.25 bn<\/td><\/tr>
Face Value (Rs.) 10<\/td>Lot Size (shares) 90<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Subscribe IPO<\/a><\/div>\n<\/div>\n\n\n\n

Sigachi Industries Limited was incorporated as a private limited company in 1989, with the business to manufacture chlorinated paraffin and hydrochloric acid in their manufacturing unit situated at Hyderabad. In the year 1990, the company diversified its product portfolio to manufacture microcrystalline cellulose. Sigachi Industries is engaged in manufacturing microcrystalline cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. The inert non-reactive, free-flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and cosmetic industries. It manufactures MCC of various grades ranging from 15 microns to 250 microns. The major grades of MCC manufactured and marketed by the Company are branded as HiCel and AceCel. Presently, the company manufactures 59 different grades of MCC at their manufacturing units, situated at Hyderabad and Gujarat with an aggregate installed capacity of 11,880 MTPY. The company has entered into operations and management agreements with Gujarat Alkalies and Chemicals Limited for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminum chloride in the said units.<\/p>\n\n\n\n

The company has received various quality certifications and operates 3 manufacturing units namely, Unit I situated at Hyderabad, and two manufacturing units, Unit II and Unit III situated at Jhagadia and Dahej, in Gujarat. As of March 31, 2021, the company’s total MCC manufacturing capacity is 13,128 MTPA from three locations.<\/p>\n\n\n\n

Competitive Strengths<\/strong><\/p>\n\n\n\n

\u00b7 One of the leading manufacturers of cellulose-based excipient industry in India with over 30 years experience<\/p>\n\n\n\n

\u00b7 Pan India and International Market Presence<\/p>\n\n\n\n

\u00b7 Well experienced management team with proven project management and implementation skills<\/p>\n\n\n\n

\u00b7 Comprehensive product portfolio enables the company to serve diverse end-use applications \u00b7 Presence across diverse industry verticals with long-standing relationship with the company\u2019s customers<\/p>\n\n\n\n

\u00b7 Growth led by continuous investment and focus on R&D<\/p>\n\n\n\n

\u00b7 Quality Assurance and Quality Control of the company\u2019s products<\/p>\n\n\n\n

\u00b7 Strategically located manufacturing facilities<\/p>\n\n\n\n

At the upper end of the price band, the issue is reasonably priced at 13.9x PE in its FY22 earnings. The listing in the “T” group may curtail speculative moves in the initial stage. One may Subscribe from a longer-term perspective.<\/p>\n\n\n