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Sigachi Industries, a Hyderabad-based manufacturer of cellulose based excipients, has filed its DRHP to raise approximately ₹60 crore.
The IPO is a fresh issuance of up to 28,41,500 equity shares of face value of ₹10 each.
The company is engaged in the manufacturing of microcrystalline cellulose, the polymer that is widely used 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 the cosmetic industries.
Presently, the company manufactures 50 different grades of MCC at its manufacturing units, situated at Hyderabad and Gujarat, under the brand named HiCel and AceCel.
Expansion of production facilities
The net proceeds of the issue are to be used for expansion of production facilities of MCC at Dahej and Jhagadia in Gujarat between FY21 and FY22, as well as general corporate purposes.
The proposed expansion will add 3,600 MTPA capacity to the Dahej and Jhagadia facility, augmenting its capacity to 7,890 MTPA and 5,760 MTPA, respectively.
Saffron Capital Advisors has been appointed as the BRLM to the Issue. The Equity Shares offered through the DRHP are proposed to be listed on the BSE and the NSE
Incorporated as a private limited company in 1989, Sigachi manufactures chlorinated paraffin and hydrochloric acid at its manufacturing unit situated at Hyderabad. In 1990, the company diversified its product portfolio to manufacture microcrystalline cellulose. With over 30 years of continuous growth, three multi-locational manufacturing facilities and consistent focus on delivering superior quality product, the company is one of the leading manufacturers of cellulose-based excipients in Indiain terms of volume.
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.
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