The pharmaceuticals industry is once again in the spotlight. After a period of underperformance, the sector’s health has shown improvement. The Nifty Pharma index has risen nearly 15% in the past four months, starting from its support level. Leading brokerage firm Emkay states that the sectoral index has broken out from a falling channel, which indicates a bullish continuation.
Amid the recent surge in buying activity in the pharma sector and the overall market reaching record highs, Sigachi Industries has received approval to issue 1.1 crore convertible warrants. Sigachi Industries is well-known for its microcrystalline cellulose (MCC), which is widely used as an excipient in the pharmaceutical, food, nutraceutical, and cosmetics industries.
According to an exchange filing, the convertible warrants will be issued through preferential allotment at a price of Rs 261 per share.
“The proposed warrants can be converted into an equal number of equity shares with a face value of Rs 10 each, at an issue price of Rs 261 within 18 months from the date of warrant allotment,” stated the filing.
The funds raised from the issuance will be utilized to support long-term working capital requirements.
Sigachi Industries made its stock market debut in November 2022, raising over Rs 125 crore from the issue. The company operates from three manufacturing units located in Hyderabad, Jhagadia, and Dahej in Gujarat.
Its shares have delivered a 40% return in the past three months and are up over 90% from the issue price of Rs 163.
Meanwhile, on Friday, the Sensex and Nifty reached new all-time closing highs, driven by foreign fund inflows and the positive trend in global markets. Increased buying in heavyweight stocks like Infosys, HDFC twins, Reliance Industries, and TCS further boosted market sentiment.
Rallying for the third consecutive day, the 30-share BSE Sensex surged 803.14 points or 1.26% to reach a lifetime closing high of 64,718.56. Intraday, it reached a peak of 64,768.58, gaining 853.16 points or 1.33%. The NSE Nifty climbed 216.95 points or 1.14% to end at a record high of 19,189.05. Intraday, it recorded its all-time peak of 19,201.70, rising 229.6 points or 1.21%.
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Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
