Sigachi Industries Announces Issuance of Convertible Warrants On Preferential Allotment

Sigachi Industries has announced that the board has approved increasing authorised share capital from Rs 32 crore to Rs 43 crore.

The company in a filing said that the board has approved the issuance of not exceeding Rs 1.10 crore convertible warrants at a price of Rs 261 each to the promoter/promoter group and certain identified non-promoter persons or entities by way of preferential allotment.

Post allotment, the promoters will have 48.17 per cent and public will have 51.83 per cent of post-issue paid-up capital, assuming that all the warrants proposed to be issued are subscribed and converted into equity shares.

The issuance is, however, subject to the approval of the shareholders at an extraordinary general meeting of the company.

The company has convened an extra-ordinary general meeting on Wednesday (July 26) to seek the approval of the shareholders.

Sigachi Industries was incorporated in 1989. It is engaged in the manufacturing of Microcrystalline Cellulose (MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry.

Its shares made their stock market debut in 2021 at a premium of more than 250 per cent. Its shares finished at Rs 296 on BSE during Wednesday's trade.