1:10 Split: Smallcap Pharma Stock Near Rs 70, Rises On Major Update; 222% Returns From Lows

Smallcap Pharma Stock, Sigachi Industries, rose as much as 3.2% on Thursday after its board meeting where the members approved the allotment of shares to non-promoters. Sigachi is among the affordable small-caps, trading near Rs 70. However, the stock is currently up by 222% from its 52-week lows.

On BSE, Sigachi Industries' share price ended at Rs 70.83 apiece up by 0.94%, after rising by 3.2% to hit an intraday high of Rs 72.40 apiece in the trading session. The company's market cap is at Rs 2,291.19 crore.

Sigachi's 52-week high is at Rs 95.94 apiece, and the 52-week low is at Rs 22 apiece. Sigachi is a multi-bagger as it currently trades higher by 221.95% from its 1-year lows.

As per the regulatory filing, on March 6, Sigachi announced that its board of directors have considered and approved the allotment of 47,18,080 equity shares of Re. 1/- each to non-promoters of 47,18,080 (pre-split -4,71,808) warrants at an issue price of Rs. 26.1/- per share.

In October 2023, Sigachi's share price split into 1:10 stock. That means that 1 equity share is split into ten shares. The face value was brought down to Rs 1 from Rs 10 per share.

Last month, Sigachi announced that its wholly-owned subsidiary Sigachi MENA FZCO, and iConsult Trading Consultancy LLC, a wholly-owned subsidiary of iMass Investments formed a joint venture to enter the growing UAE food and pharma market.

Sigachi Global will create separate entities to manage Sigachi's core verticals viz. Pharma (excipients and APIs), Food and Nutrition, and Operations and Management (O&M) as required. Sigachi MENA FZCO will hold a 75% stake and iConsult shall hold 25% in the JV. Sigachi Global is estimated to have revenues of USD 54 Million by 2029.

The joint venture will capitalize on the complementary capabilities of both companies, combining iMass/iConsult's market knowledge and Sigachi's cutting-edge technology to deliver superior products and services to customers in the GCC.

In Q3FY24, the company posted a consolidated net profit of Rs 16.10 crore, rising from Rs 9.82 crore in Q3FY23 and Rs 15.11 crore in Q2FY24. Consolidated revenue from operations stood at Rs 110.94 crore in Q3FY24 versus Rs 68.84 crore in Q3FY23 and Rs 99.17 crore in Q2FY24.

Sigachi Industries Limited, publicly listed in NSE and BSE, is a globally recognized pharmaceutical company known for its unwavering commitment to delivering high-quality excipients, vitamin mineral nutrient blends, APIs, and O&M services. With over 33 years of industry experience, Sigachi has emerged as a trusted partner for pharmaceutical and nutraceutical companies spread across 62 countries.

The company's diverse product portfolio is manufactured in 5 multilocational facilities present in Telangana, Gujarat and Karnataka which hold global standard certifications like WHO GMP, EXCiPACT GMP, ISO, KOSHER, HALAL
etc. Being headquartered in Hyderabad, Sigachi Industries Limited has subsidiaries in the US and UAE.

Disclaimer: The write-up highlights about the latest development in stock split, and is not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.