Shares of a pharma company gained 7 percent on Tuesday’s early trades to reach an intraday high of ₹ 385.00 apiece on the National Stock Exchange (NSE) after it announced a 1:10 stock split. At 10:30 AM on Tuesday, its shares were trading at 372.45 apiece.
The Board of Directors of Sigachi Industries in their meeting held on September 09, 2023, announced a split/ sub-division of the company’s shares of a face value of ₹ 10 each into ten equity shares of a face value of ₹ 1 each, i.e., in the ratio of 1:10. They have fixed October 09, 2023, as the record date for this purpose.
Sigachi Industries is one of the largest manufacturers of Microcrystalline Cellulose worldwide and has three multi-locational facilities in Telangana and Gujarat.
The company debuted on the bourses in November 2021 and had a stellar listing. It raised ₹ 125.43 crores through its Initial Public offering (IPO) by selling its shares in the range of ₹ 161 to ₹ 163 apiece. Therefore, the stock has delivered multibagger returns of 131 percent since its IPO.
With a market capitalization of ₹ 1,105 crores, Sigachi Industries is a small-cap company. It has an ideal return on equity of 17.49 percent and an ideal debt-to-equity ratio of 0.17. Its shares were trading at a price-to-earnings ratio (P/E) of 26.56, which is lower than the industry P/E of 32.71, indicating that the stock might be undervalued as compared to its peers.
As per the company’s latest shareholding pattern, retail investors hold a 51.46 percent stake in it, followed by promoters with 48.49 percent and foreign institutions with 0.05 percent.
Written by Simran Bafna
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