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Sigachi booked profit after blockbuster listing? Learn what experts say

Sigachi Industries is listed as a blockbuster in the stock market. Sigachi Industries, which has an issue price of Rs 163, is listed at Rs 575 with a premium of 253 per cent. This means that the investors to whom its shares were allotted were counted in rupees at the time of listing.

The stock was listed on the National Stock Exchange (NSE) with a premium of Rs 570 or 250 per cent. Still, it rose five per cent to Rs 603.75. Thus, both the exchanges saw a listing gain of 270 per cent. Now after such a strong listing, investors are also confused whether they should book profits or hold for higher profits.

“Investors should book profits by selling their 70-75 per cent stake,” said Aastha Jain, senior research analyst at Haim Securities. “It would be good to book a small profit in such a listing,” he said. The remaining holding should then be retained for a longer period.

Vikas Jain, a senior research analyst at Reliance Securities, has asked investors to book profits as they have had a resounding debut. The stock is listed trade-to-trade and will remain there for a few more sessions, he added. So it would be prudent to book profit. Note that the scrips are added in T-segments or trade-to-trade to meet the 5% circuit limit.

Akhil Rathi, vice-president-advisory, Marwari Shares and Finance, said investors should book profits and hold the rest of the holdings for a long time, as the company has a virtual monopoly and there is a high demand for its products. Vishal Balabhadruni, CapitalVea Global Research, said, “This stock is great for the long term and investors can hold on to it.” Short term investors take advantage of listing gains and long term investors wait for the correction.

It is worth noting that 24 hours before the listing, its premium was being told in the gray market. Its premium in the gray market was Rs 220-230. The issue also received an overwhelming response from investors and was hit 120 times.

Analysts had speculated that Hyderabad-based microcrystalline cellulose (MCC) maker could prove to be another Paras Defense Technologies. However, the company has also broken the record of Paras Defence, which was listed at a premium of 175 per cent. MCC is used in the pharmaceutical, food, nutraceuticals and cosmetics industries. Sigachi has three plants, one in Hyderabad and the other in Gujarat.

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