Sigachi Industries Listing: Microcrystalline cellulose maker Sigachi Industries has made a banging entry in the equity market. Its shares are listed on the BSE at a price of Rs 575 against the IPO price of Rs 163 ie the investors got a listing gain of 253 percent. Shortly after the start of business, it reached a price of Rs 603.75, that is, the listing gain of investors reached 270 percent. According to most market experts, investors should book profits and new investors have been advised to wait for the price correction for now.
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Fantastic response from investors about IPO
Analyst believes that Sigachi Industries has made a great start today on the back of strong fundamentals and attractive valuations. Its IPO was at 16 times the earnings of FY 2021. The issue received a great response from investors and the public issue of Rs 125.43 crore was subscribed 101.91 times. Before the IPO, the company had raised Rs 37.62 crore from anchor investors.
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This is the opinion of market experts
- According to AR Ramachandran, Co-Founder and Trainer, Tips2Trades, the valuation of the company is not only at attractive value to its peers but also recently listed companies, but despite this, investors should book profit by selling some shares from their holdings. According to Ramachandran, the strategy of booking profit on the listing gain of any stock should be adopted. Ramachandran said that the market outlook is looking weak due to inflationary pressure, so investors should book profits and buy more if its prices fall.
- Investors who have got shares through IPO, Parth Nyati, Founder of Tradingo, has advised them to hold the stock at a stop loss of Rs 480. He has advised new investors to invest money when there is a fall in the price instead of investing now.
- According to Manoj Dalmiya, Founder and Director, Profitable Equities, if the listing gain is more than 100%, then profit can be booked. However, if the income increases in the coming time, there is a possibility of strengthening its price.
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Money will be used to increase production capacity
Sigachi Industries is a leading manufacturer of Microcrystalline Cellulose (MCC). It has a variety of industry verticals. MCC is used in the pharma, food, nutraceuticals and cosmetic industries. Presently, the company manufactures 59 different grades of microcrystalline cellulose at its plants located in Hyderabad and Gujarat. With the money raised through the IPO, the company will increase its production capacity in Dahej and Jhagadia in Gujarat and for general corporate purposes.
(Article: Surbhi Jain)
(The stock recommendations given in the story are those of the respective research analysts and brokerage firms. Financial Express Online takes no responsibility for the same. Investments in capital markets are subject to risks. Please consult your advisor before investing.)
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