IPO’s are private companies(old or new) launching their shares to the public. These shares can also be made accessible through the shareholders. It’s available in the open market for trading. The purpose is to raise capital for the original company while also benefiting the public. Several top companies like Nykka, Policy Bazaar, Paytm, have announced to launch on November 1st. Sigachi Industries Pvt. Limited, one of the leading manufacturing industries will be launching its IPO next week and if you’re interested in trading then this is the right place for you. However, before investing we have listed some of the Pros and Cons of the Sigachi Industries IPO to make things easier for you. Without further ado, let’s jump into the details of the same.
About
Sigachi Industries Pvt. Limited is a public company that was founded in 1989. The company is located in Telangana, Hyderabad. It deals in several products such as pharmacy, chemical, food, beverages, cosmetics, microcrystalline cellulose, and paint. In addition, the company is engaged in manufacturing 59 grades of microcrystalline cellulose. It is one of the leading and trusted manufacturers in our country. It has three manufacturing units located all over the country. Last year, the revenues amounted in the range Rs.100-500 cr.
The company operates on an excellent research and development division. The investment process also takes this division into serious consideration. Also, it has received several quality-based certificates acknowledging the products. Therefore, it has gained long-term success in the industry domestically and internationally. It has maintained strong customer ties and provides a diverse range of products, the reason it has been operating so smoothly. The quality of the products is also not compromised and is graded as top-class. The industry operates through strategically designed locations. Although it is not listed yet it operates as a public company therefore, it receives Government incentives.
Recently, the industry had announced the issuing of IPO. The opening date of the IPO is November 1 while the closing date of the IPO is November 3. The capital raised through this IPO will lead to the development of the manufacturing units located in Hyderabad and Gujarat. The allotment date is 10 November and the refunds will be initiated from 11 November. The listing date of the IPO is 15 November and you can access it on the official site of BSE and NSE.
Pros of Sigachi Industries IPO
We will now discuss the strengths of the industry IPO. The company has a reputed research and development division. The manufacturing industry has been operating domestically and internationally successfully for the past 30 years. The raw material of the industry is processed through agro-based therefore, it operates on a sustainable basis. Due to the increased demand of consumers for sustainable products and the growing environmental crisis, investing in this company is a good decision. The public company has access to several Government initiatives. The annual growth of the company has been 6.3percent for the past 4 years. The driver of this company is the increasing consumer demand for cosmetics, pharmaceuticals, and personal care products. In the next 5 year period, the company is expected to grow at an annual rate of 7.5 percentage.
Cons of Sigachi Industries IPO
The company has several global competitors such as DFE Pharma, FMC Corp, Shandong Xinda Biotechnology Co. Ltd, and in addition, it faces competition from the companies in the MCC industry. The cellulose-based products might become inactive after a certain period of time as different chemicals are becoming the focus area of other competitors. The raw materials are agro-based and it has not acquired a good amount of it at low costs. Therefore, if this continues in the near future then the company is subjected to several losses. This can have an adverse impact on the financial future of the company. Some of the products of the company have a less range of consumers. If the company loses this trusted range of consumers then the sale of the product will decline along with the revenue earned from it.
Therefore, we recommend you analyze the pros and cons objectively before investing in the IPO of Sigachi industries. Further, you can stay updated about the details of the upcoming IPO on our website and daily stock market details as well.
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