Will you book profit in Sigachi shares post its bumper listing?

Analysts on Dalal Street have mixed views on Sigachi Industries post its 250 per cent listing gains on Monday. Shares of the company made their debut at Rs 570 on the NSE against the issue price of Rs 163. The scrip listed at Rs 575 on the BSE.

Earlier, the public offer (IPO) was subscribed 102 times on the last day of the offer on November 3. The issue was opened for subscription on November 1. The company received bids of 54.89 crore shares against 53.86 lakh shares on the offer.

Commenting on Sigachi after its stellar listing, Parth Nyati, founder, Tradingo said, “The company witnessed bumper listing on the back of robust fundamentals and attractive valuations. IPO was valued at 16x FY21 with no listed peer. Existing shareholders are advised to hold the stock with a stop loss of 480 while the new investors are advised to wait till the stock prices cool off.”

The company manufactures microcrystalline cellulose (MCC), a polymer widely used for finished dosages in the pharmaceutical industry.

The stake of promoters and promoter group has been reduced to 48.5 per cent from the earlier 64.6 per cent after the issue. The public shareholding has risen to 51.5 per cent post the issue from the existing 35.4 per cent.

Ravi Singhal, vice chairman, GCL Securities said, “Lucky bidders should book 50 per cent profit and recover their principal and keep the rest 50 per cent stocks in their portfolio. They should hold Sigachi Industries shares for the one-month target of Rs 888 maintaining stop loss at Rs 530 per share levels.”

What about those who failed to get shares of the company? Singhal added that those who did not receive Sigachi during allotment are advised to buy the counter at current levels for one month with a target of Rs 888 while maintaining strict stop loss at Rs 530.