This stock has tumbled 14% on being transferred to rolling settlement

Experts further said that retail investors should be clear on whether they are taking short-term positions based on the sentiment or investing for the long term.
Shares of Sigachi Industries (SIL) tumbled 14 per cent to Rs 400 on the BSE in Tuesday’s intra-day trade on back of heavy volumes as stock was transferred to rolling segment from today.

“The trading in the equity shares of Sigachi Industries shall be transferred from Trade for Trade segment (T Group) to Rolling segment with effect from November 30, 2021. Accordingly, the dealings in the equity shares of the company will be shifted under B Group,” BSE said in a notice dated November 15, 2021.

The stock of pharmaceutical company was quoting lower for the fourth straight day, falling 26 per cent during the period on profit booking. It has fallen 38 per cent from its highest level of Rs 648 touched on November 17, 2021.

At 12:23 pm; SIL was trading 9 per cent lower at Rs 425 on the BSE, as compared to 0.27 per cent rise in the S&P BSE Sensex. The trading volumes on the counter jumped over three-fold with a combined 1.74 million equity shares changing hands on the NSE and BSE.

On November 15, SIL had made a stellar stock market debut as its shares got listed at Rs 575, a 253 per cent premium over its issue price of Rs 163 per share on the BSE.  Since listing till yesterday, SIL was traded under the T group on the BSE. In the T2T segment, each trade has to result in delivery and no intra-day netting of positions is allowed.

SIL is engaged in manufacturing microcrystalline cellulose ("MCC") which is widely used as an excipient for finished dosages in the pharmaceutical industry. The inert non-reactive, free-flowing and versatile nature of MCC has varied applications in the pharmaceutical, food, nutraceuticals and cosmetic industries. It manufactures MCC of various grades ranging from 15 microns to 250 microns. The major grades of MCC manufactured and marketed by the Company are branded as HiCel and AceCel.

“SIL IPO was valued at 16x FY21 with no listed peer. Over the long run, if the demand is sustained for MCC and the expansion program of the company post the IPO will provide earnings growth momentum. Existing shareholders are advised to hold the stock with an stop loss of 480 while the new investors are advised to wait till the stock prices cool off,” Parth Nyati, Founder,Tradingo said after bumper listing of the stock.

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