Don’t miss action in this small-cap stock that announces issuance of convertible warrants on preferential allotment!
The stock is up by 30 per cent in just 1 month and over 40 per cent in 3 months.
Sigachi Industries Ltd has announced that the board has approved increasing authorised share capital from Rs 32 crore to Rs 43 crore.
The company in a filing said that the board has approved the issuance of not exceeding Rs 1.10 crore convertible warrants for Rs 261 each to the promoter/promoter group and certain identified non-promoter persons or entities by way of preferential allotment.
Post allotment, the promoters will have 48.17 per cent and the public will have 51.83 per cent of the post issue paid-up capital, assuming that all the warrants proposed to be issued are subscribed and converted into equity shares.
The issuance is, however, subject to the approval of the shareholders at the extraordinary general meeting of the company. The company convened an extraordinary general meeting on Wednesday, July 26, 2023 to seek the approval of the shareholders.
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Sigachi Industries was incorporated in 1989. It is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. The shares of the company have a PE of 20.80x, a ROE of 18 per cent and a ROCE of 21 per cent. The company reported positive numbers in its Quarterly Results & annual results and has delivered good profit growth of 44.5 per cent CAGR over the last 5 years.
On Friday, shares of Sigachi Industries surged 2.62 per cent to Rs 305.25 per share from its previous closing of Rs 297.45 per share. The stock is up by 30 per cent in just 1 month and over 40 per cent in 3 months. Investors should keep an eye on this small-cap pharma stock.