Sigachi's record 3.7 times jump kicks off busy listing week

PolicyBazaar's parent gains 23% on debut

Microcrystalline cellulose maker Sigachi Industries’ stock price surged 3.7 times or 270 per cent over its IPO price, recording the best-ever gain witnessed by an Indian company on its listing day. Shares of PB Fintech, parent of online insurance marketplace PolicyBazaar, too, witnessed a handsome gain of 23 per cent upon listing, marking a strong start for the busiest week in over a decade for listing.

SJS Enterprises, on the other hand, witnessed its stock price fall below the issue price on debut. The company’s stock price ended 6.13 per cent below its IPO price of Rs 540.

Sigachi Industries listed at Rs 575, a premium of 252.76 per cent over its issue price of Rs 163 on the BSE. During the day, it rallied 270.39 per cent to Rs 603.75. The company surpassed Paras Defence’s record — a 2.85x jump on its first trading day on October 1.

Besides, Softbank-backed PB Fintech joined peers in the start-up space Zomato and Nykaa to see a jump in share price during the first day of trade. At the last closing price, the company was valued at around Rs 54,000 crore. Its stock closed as Rs 1,203 against the issue price of Rs 980.  

PolicyBazaar’s parent firm raised Rs 3,750 crore in fresh capital via the IPO and the issue proceeds would be used to enhance its brand visibility and expand its consumer base.

PB Fintech’s trailing 12-month (ending June 2021) sales were about Rs 950 crore. Its stock currently quotes at 57 times its sales.

The company had reported a loss of Rs 150 crore in FY21.

The IPOs of all three companies had closed on November 3. While PB Fintech’s IPO had garnered 16.6 times subscription and Sigachi’s offering was subscribed 71 times, SJS Enterprises’ issue had just about managed to scrape through.

According to Bloomberg, the ongoing week is the busiest week in 11 years for listing. IPOs that have cumulatively raised close to Rs 25,000 crore ($3.3 billion) will make their stock market debuts. The biggest of the lot Paytm, which mopped up Rs 18,300 crore, will list on Thursday.