Should you hold Sigachi industries Stock:
Let us start with Sigachi IPO Subscription data
On 15th November 2021, Sigachi Industries IPO shares are going to listing on BSE & NSE Stock exchanges. Company had fixed IPO share price of 161rs to 163rs per lot size of 90 shares. Sigachi Industries IPO had received very good response and Sigachi Industries IPO had subscribed nearly 101.9 times out of which retail portion of the IPO had subscribed by nearly 80.40 times & he portion non-institutional investors had subscribed nearly 172.4 times, Company IPO had received bids from Qualified Institutional Buyers (QIBs) nearly 86.51 times . Sigachi Industries IPO equity size was 53.86 lacs but bids received for this IPO was nearly 54.88 crore. It is very good sign for this company and for the company shareholders.
Sigachi Industries IPO was also getting Grey market premium nearly 185rs per share which is more than 115% from the higher price band of Sigachi industries IPO i.e 163rs. Even We cannot much trust on Grey market premium because it may increase or decrease on the time of IPO listing but still traders get an idea about the IPO listing price. From the listing point of view it is very good thing. But after sigachi industries iIPO listing should you hold or sell sigachi industries share? It is very important question. Let us try to find the answer of this question in brief by understanding business model and finanl results of the sigachi industries.
Sigachi Industries hold or sell:
Sigachi Industries raised more than Rs 125.4 crore at the IPO upper price band of 163rs by issuing 76.95 lakh shares. Sigachi Industries products mainly use in the pharmaceutical industry. Pharma sector is also in the lime light from last 20 months due to Covid 19 pandemic. Many Listed Pharma companies has already given multibagger returns. Sigachi Industries deals in manufacturing of microcrystalline cellulose which is a polymer mostly use in the finished dosages in the pharmaceutical industry. Sigachi Industries has manufacturing units in Hyderabad and Gujarat & company has popular brand names like HiCel and AceCel. Sigachi industries were established in the year of 1989. Company hasd show rapid growth after its establishment & set its reputation as a largest manufacturers of Microcrystalline Cellulose globally. Sigachi industries established its business not in India but also in Asia, Australia, American Continent, Europe and Middle East by offering quality products commitment. Company has also business into the the food processing industry . But Mainly Company cater pharmaceutical industry in the nutra ceutical and supplement industries, the food ingredients industry and the drug formulation sector. Company export more than 60% products into the more than 40 countries. Sigachi Industries has strong presence into USA with its subsidiary with the name of Sigachi US Inc. If we will talk abouth the Research & Development of Sigachi industries then company has R & D centre which is approved by Government of India, Ministry of Science & Technology, Department of Science and Industrial Research .
Sigachi Industries Financial results:
As per then financial results published on the Sigachi Industries website , The operating profit of the company is nearly 20% in the financial year of 2021 But operating profit of the sigachi industries in the FY20 was nearly 18 which gives us a sense of increase in the operating profit of the company nearly % . If we will calculate the net profit of the sigachi industries then we will find that Net profit margin slightly decline in FY21 and net profit margin reported at nearly 15.65%. Promoters of the Sigachi Industries are not much into the lime light but in the pharma industries Sigachi industries promoters have very good reputation. Name if the Sigachi Industries promoters are Rabindra Prasad Sinha, Chidambarnathan Shanmuganathan, Amit Raj Sinha & shareholding in the company is 64.64% which is very good.
Recommendation:
Sigachi Industry buy or sell
After competition of our research on Sigachi industries IPo, We can share then Investors should hold Sigachi Industries share after IPO listing. There is nothing wrong with Sigachi Industries Company. Company has strong presence into global as well in the domestic market of India and products of the company is in demand into the pharma industry.
There is no question that if Sigachi Industries IPO opens as per the grey market premium then it is expected to listing at the price of 350rs plus which is more than 100 % listing gains which will be very good returns for IPO investors. Short term traders should try to book partial profit after listing but If Sigachi industries shares does not show profit booking on the higher levels after listing then new investors may buy after the listing of the IPO.
Investors should accumulate Sigachi Industries share for the long term point of view 1 year to 2 years point of view. We may see ups & downs in the share price of Sigachi industries after lisiting but long term investors should buy Sigachi share in small sets. Therefore If Investors get the chance for buying Sigachi Industries share after listing then you can add into your portfolio.
Long term target: Sigachi Industries long term price targets are 410rs to 500rs +
Advice on Sigachi Industries share: Successful IPO Bidders of Sigachi Industries may book some profit after its listing or Raise stoploss to lock your profit. Sigachi Industries stock may become good choice of retail investors.
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