Sigachi Industries Ltd IPO - Subscription Day 1

5paisa Research Team 5paisa Research Team 1st November 2021 - 11:20 pm

The Rs.125.43 crore IPO of Sigachi Industries Ltd, consisting entirely of a fresh issue of Rs.125.43 crore, saw a tremendously strong response on Day-1. As per the combined bid details put out by the BSE, Sigachi Industries Ltd IPO was subscribed 9.52X overall, with bulk of the demand coming from the retail segment which saw a robust oversubscription.

However, HNI portion also got oversubscribed and QIBs have participated too. The issue closes on 03rd November.

As of close of 01st November, out of the 53.87 lakh shares on offer in the IPO, Sigachi Industries Ltd saw bids for 512.76 lakh shares. This implies an overall subscription of 9.52X. The granular break-up of subscriptions were tilted in favour of retail investors with HNIs also participating aggressively and QIBs also chipping in on the first day of the IPO. QIB bids and NII bids typically come in only on the last day of the IPO.

Sigachi Industries Ltd IPO Subscription Day-1

Category	Subscription Status
Qualified Institutional Buyers (QIB)	0.57 Times
Non Institutional Investors (NII)	4.44 Times
Retail Individuals	16.81 Times
Employees	N.A.
Overall	9.52 times

QIB Portion

The QIB portion of the IPO saw 0.57X subscription at the end of Day-1. On 29 October, Sigachi Industries Ltd did an anchor placement of 23,08,500 lakh shares at the upper end of the price band of Rs.163 to 2 anchor investors raising Rs.37.63 crore. The 2 QIB investors that invested in the anchor placement of Sigachi Industries include 3 Sigma Global Fund and Nexus Global Opportunities Fund.

The QIB portion (net of anchor allocation as explained above) has a quota of 15.39 lakh shares of which it has got bids for 8.82 lakh shares on Day-1 of the IPO. QIB bids typically get bunched on the last day, but the start has been good enough.

HNI / NII Portion

The HNI portion got subscribed 4.44X (getting applications for 51.28 lakh shares against the quota of 11.54 lakh shares). This is a very strong response on Day-1 since this segment normally sees such a robust response on the last day. In fact, bulk of the funded applications and corporate applications, come in on the last day, so the actual picture should only get better from here on.

Retail Individuals

The retail portion was subscribed a robust 16.81X at the end of Day-1, showing strong retail appetite. Retail allocation for this IPO is 35% of the offer size. For retail investors; out of the 26.93 lakh shares on offer, valid bids were received for 452.66 lakh shares, which included bids for 339.59 lakh shares at the cut-off price. The IPO is priced in the band of (Rs.161 – Rs.163) and will close for subscription on 03rd November 2021.

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