Sigachi Industries shares jump 14%; co forms JV to enter Saudi market

Shares of Sigachi Industries rallied during the early trading session on Friday to hit its new 52-week high after the company announced incorporation of a new joint venture (JV) in Saudi Arabia to explore the growing market. The company informed about the same through an exchange filing on Thursday.

"Sigachi MENA FZCO, a wholly owned subsidiary of the company, incorporated in Dubai, has announced formation of a joint venture (JV), with Saudi National Projects Investment (SNP) to enter the rapidly growing Saudi Arabian market," said the company in an exchange filing. Sigachi MENA FZCO will hold a 75 per cent stake and SNP will own a 25 per cent stake in the JV.

Sigachi Arabia will be a holding company that will create separate entities to manage Sigachi’s core verticals viz. Pharma (excipients and APIs), food and nutrition, and operations and management (O&M), said the filing. "In about three years, a manufacturing facility is also planned to be set up in Riyadh to initially cater to the local market and later, to serve the GCC countries," it added.

Following the announcement, shares of Sigachi Industries rallied more than 13 per cent to Rs 43.85 on Friday, its new 52-week high. The company commanded a total market capitalization of more than Rs 1,310 crore. The scrip had settled at Rs 38.55 in the previous trading session.

Shares of Sigachi Industries have gained as much as 99 per cent from its 52-week low at Rs 22 hit in March 2023. The stock has gained about 70 per cent in the last one year, while the stock is up 60 per cent in the year 2023 so far. It has gained 15 per cent in the last one month.

Shares of Sigachi Industries traded ex-split earlier this month, when the company divided its shares in 1:10 ratio. Sigachi is engaged in manufacturing of microcrystalline cellulose (MCC), used as an excipient for dosages in the pharma, food, nutraceuticals, and cosmetic industry.

Incorporated in 1989, Sigachi Industries made its debut at Dalal Street in November 2021, when the company raised Rs 125.43 crore through its initial stake sale by selling its shares in the range of Rs 16.3 per shares on an adjusted basis. The stock is currently trading more than 170 per cent above its adjusted issue price.

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