From Rs 163 IPO to Penny Stock at Rs 48; How Do Investors Reap 200 per cent gains? Know more here!

How 3-digit IPO became a penny stock of Rs 48 and still trippled the wealth while having the listing gains of 253 per cent. Here is the story,

The company has given the intimation the company has arranged an earnings call for Q2 FY24 Results on Wednesday, 15th November 2023. Till then here is some interesting to read, how a 3-digit IPO became a penny stock of Rs 48 and still trippled the wealth while having the listing gains of 253 per cent. Here is the story,

Stock Story

Sigachi Industries, a pharma stock, was launched in the primary market in November 2021 at a price band of Rs 161 to Rs 163 per equity share. Bidders applied in a lot of 90 shares. Sigachi's debut was the strongest with the stock listing at Rs 570 with a 253 per cent premium over its issue price of Rs 163. If IPO investors remained invested in this pharma stock after listing, and after the subsequent 1:10 stock split, their shareholding in the company would have surged from 90 shares to 900 shares.

On Friday, Sigachi Industries' share price hit a new 52-week high of Rs 48.8, which means that the absolute value of an allottee's investment would have turned to Rs 43,920, up from the Rs 14,670 required to apply for one lot of the IPO. This means the net increase in an investor's money after the 1:10 stock split would have been around 200 per cent in two years.

Currently, the stock is trading at Rs 48.8 and it is at its 52-week high. The company has delivered good profit growth of 44.5 per cent Compounded Annual Growth Rate over the last 5 years and Company has a good return on equity track record where 3 Years ROE stands at 23.3 per cent. The company share has given a remarkable gain to its investors in a year time period which stands at 77.75 per cent and in short-term timeframe of 1 month it has accumulated wealth by 24.49 per cent.

Recent Development

Sigachi MENA FZCO, a subsidiary of Sigachi Industries Limited, has partnered with Saudi National Projects Investment Ltd (SNP) to form Sigachi Arabia, a joint venture that will tap into the Saudi Arabian market. Sigachi MENA FZCO will hold a 75 per cent stake in the JV, while SNP will hold the remaining 25 per cent. Sigachi Arabia will operate as a holding company, overseeing separate entities focused on Pharma (excipients and APIs), Food and Nutrition, and Operations and Management (O&M). Within three years, the JV plans to establish a manufacturing facility in Riyadh that will initially cater to the local market and eventually expand to serve GCC countries.

About Company

Sigachi Industries Ltd. (SIL) is one of the largest manufacturers of Microcrystalline Cellulose worldwide and has three Multi-locational Facilities in Telangana and Gujarat.

Disclaimer: The article is for informational purposes only and not investment advice.