Sigachi Industries shares rise after board okays issue of warrants

Shares of Sighachi Industries surged 3 per cent during the trading session on Friday after the company board of directors approved issuance of convertible warrants to promoters and other shareholders on a preferential basis in its meeting held on Thursday.

According to a regulatory filing with BSE, the company board has approved to issue 1.1 crore convertible warrants to the promoter or promoter group of the company and certain identified non-promoter persons or entities by way of preferential allotment.

The company board has fixed the issue price of warrants at Rs 261 apiece, about a discount of 12 per cent from its previous close at Rs 297.45 on BSE. The company board has also approved to increase the authorized share capital of the company from Rs 32 crore, or 3.2 crore equity shares to Rs 43 crore, or 4.3 crore equity shares.

Both the decisions are subject to the approval of the shareholders in the ensuing extra-ordinary general meeting (EGM) of the company, which is scheduled to be held on July 26, 2023 (Wednesday) at 11 am, the exchange filing added further. The company has appointed Care Ratings as the agency to monitor the use of proceeds of the preferential issue

Following the announcement, Shares of Sigachi Industries surged 3 per cent to Rs 305.75 on Friday, commanding a total market capitalization of more than Rs 930 crore. The stock has gained about 20 per cent in the last five days, while the stock has surged around 30 per cent in the last one month.

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 161-163 apiece. The stock is currently trading about 87 per cent higher from its issue price.

Incorporated in 1989, Sigachi Industries is engaged in manufacturing of microcrystalline cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. MCC has varied applications in the pharmaceutical, food, nutraceuticals, and cosmetic industries.

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