Pharma Stock Rally 12% To Hit 52W-High On Forming JV To Enter Saudi Arabian Market

Small-cap pharmaceutical company Sigachi Industries began trading today on the BSE at Rs 39.30 per share and rose by almost 9% to reach a new 52-week high of Rs 43. While composing this article, the stock was sporting an upside gap of 12.58% over the previous close and was trading at Rs 43.40. After Sigachi MENA FZCO, a wholly-owned subsidiary of the company, incorporated in Dubai, announced the formation of a Joint Venture (JV), "Sigachi Arabia," with Saudi National Projects Investment Limited (SNP), to enter the rapidly expanding Saudi Arabian Market, the stock price experienced an enormous rise in the morning trade.

"We wish to inform you that Sigachi MENA FZCO, a wholly owned subsidiary of the company, incorporated in Dubai, has announced formation of a Joint Venture (JV), "Sigachi Arabia", with Saudi National Projects Investment Limited (SNP) to enter the rapidly growing Saudi Arabian Market. Sigachi MENA FZCO will hold 75% of stake in the JV while SNP will hold 25%," said Sigachi Industries in a stock exchange filing.

Pharma (excipients and APIs), Food and Nutrition, and Operations and Management (O&M) will be managed by different companies under the ownership of Sigachi Arabia, a holding company. A manufacturing plant is also expected to be built in Riyadh in roughly 3 years, initially to service the local market and eventually, the GCC nations. Sigachi MENA FZCO will hold a 75% stake and SNP, 25% in the JV as per a stock exchange filing.

"We are excited to partner with SNP to establish our presence in the Saudi Arabian market," said Mr. Amit Raj Sinha, CEO of Sigachi Industries Limited. "SNP's deep understanding of the local market and regulatory landscape, as well as their track record of success in executing and closing deals, make them the ideal partner for us," he further added.
Sigachi Industries shares made a 52-week-high of Rs 43.85 on (20/10/2023) and a 52-week-low of Rs 22.00 on (29/03/2023). During Q2FY24, the company reported promoters' shareholding of 46.08%, FIIs stake of 2.46% and public stake of 51.46%.