Sigachi Industries files draft papers with Sebi for Rs 60 crore IPO

NEW DELHI: Sigachi Industries, a Hyderabad-based company that manufactures cellulose-based excipients in India, has filed a draft red herring prospectus (DRHP) with the market regulator Sebi for an initial public offer (IPO).

The three-decade-old company is among the top 10 excipient-makers globally. Sigachi manufactures microcrystalline cellulose (MCC), the polymer widely used for finished dosages in the pharmaceutical industry. The inert non-reactive, free-flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and the cosmetic industries.

As per sources, the IPO size for the issue would be close to Rs 60 crore. The issue would comprise of fresh issuance of up to 28,41,500 equity shares of face value of Rs 10 each.


The company intends to use the net proceeds of the IPO for expansion of MCC production facilities at Dahej and Jhagadia in Gujarat between FY21 and FY22. Besides, it also intends to use the proceeds for general corporate purposes.

At present, the company manufactures 50 different grades of MCC at its manufacturing units, situated at Hyderabad and Gujarat under the brand named HiCel and AceCel.

The proposed expansion will add 3,600 million tonnes per annum (MTPA) capacity to the Dahej and Jhagadia facilities, augmenting its capacity to 7,890 MTPA and 5,760 MTPA, respectively.

The company has operations and management agreements with Gujarat Alkalies and Chemicals for operating and managing the manufacturing units owned by GACL and for contract manufacturing of sodium chlorate, stable bleaching powder and poly aluminium chloride.

Sigachi Industries operates manufacturing units namely, Unit – I situated at Hyderabad and two manufacturing units, Unit – II and Unit – III at Jhagadia and Dahej located in Gujarat.

Saffron Capital Advisors has been appointed as the book running lead manager (BRLM) to the issue. The equity shares are proposed to be listed on the BSE and the NSE.