Shares of Sigachi Industries Ltd. jumped more than threefold after its initial public offering saw a healthy investor appetite.
The stock listed at Rs 575, a premium of 252.7% over its IPO price of Rs 163, according to Bloomberg data. The stock then gained further to hit an intraday high of Rs 603.75, up over 270%, on the NSE.
The chemical maker’s IPO was subscribed nearly 102 times. The company, in its red herring prospectus, had said the proceeds from the IPO would be used for the expansion of its production capacity for MCC (used in cosmetics as an abrasive, absorbent) at Dahej and Jhagadia in Gujarat; and manufacturing of croscarmellose sodium (additive in pharmaceutical and non-pharmaceutical industry) at its Kurnool plant.