Sigachi Industries: Bumper entry in the market 253% return in one stroke...!

Sindujaa D N

Chemical manufacturing company Sigachi industries has made a tremendous entry into the stock market. The stock of Sigachi is listed on BSE today at a premium of about 253 per cent. 

Sigachi industries had fixed the share price for the IPO at Rs 163, while it is listed at Rs 575. That is an increase of about 253 per cent or Rs 412 from the issue price. 


The issue also got a great response from investors and was subscribed more than 100 times. 


After the bumper listing, should investors make profits in it?

 Anil Singhvi, Managing Editor of Zee business has also given his opinion on this.


What to keep strategy in stock

Anil Singhvi says that Sigachi industries has surprised. Investors have shown tremendous response in a company with a market cap of 500 crores, the revenue of 200 crores and a profit of 30 crores. 

At present, investors should move from here by putting a stop loss of Rs 50 below the listing price, so that the capital gets protected. If the price of the stock increases, then accordingly trail the stop loss.


Even after listing in Sigachi industries, there is a boom. The stock reached Rs 604 today after listing at Rs 575. That is, a 5 per cent more increase was seen in the stock than the listing. Today's low for the share is Rs 570.


Got bumper response from investors

Sigachi's IPO received a great response from investors. The issue was subscribed close to 102 times overall. The data-size of the IPO was 53.86 lakh equity shares, while bids were received for 54.88 crore shares.


The reserve portion for qualified institutional investors was filled 86.5 times. While the reserved share for retail investors was filled 80.47 times. At the same time, the reserved share for HNI investors was subscribed 172.43 times.


What does the company do?

Sigachi industries manufactures a polymer used in the farm industry. The company has plants in hyderabad and Gujarat, where 50 types of MCCs are made. Sigachi's IPO was open for subscription from november 1 to november 3. The company had fixed an upper price band of Rs 163 for the issue.


Sigachi Industries: Bumper entry in the market 253% return in one stroke...!

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