Sigachi Industries Limited has scheduled its Extra-Ordinary General Meeting (EGM) for September 15, 2026, to seek shareholder approval for a ₹290.4 crore preferential allotment of convertible warrants and an increase in authorized share capital.

The Board of Directors approved the transaction during its meeting on August 22, 2026. The issuance involves up to 11 crore convertible warrants priced at ₹26.40 per warrant, targeting promoters and identified non-promoter investors. The company will also raise its authorized share capital from ₹43 crore to ₹60 crore to accommodate the equity shares resulting from warrant conversions.

Capital Raise Details

The preferential issue targets 43 investors, with the promoter group receiving the largest allocation. Mr. Amit Raj Sinha, Managing Director and CEO, will receive 7.5 crore warrants. The remaining 3.5 crore warrants are allocated to non-promoter entities, including Trikaya Wealth Advisors Private Limited and Rajendra Prasad Adiraju.

Post-allotment and assuming full conversion, promoter holding will stand at 43.73%, while public holding will be 56.27% of the post-issue paid-up capital. Care Ratings Limited has been appointed as the monitoring agency to oversee the use of proceeds.

Use of Proceeds

The company intends to utilize the net proceeds towards specific business objectives:

• Acquisition and expansion of Active Pharmaceutical Ingredients (API) and Excipients, including Croscarmellose Sodium (CCS): ₹190.40 crore
• Working Capital requirements: ₹60.00 crore
• General Corporate Purposes: ₹40.00 crore

The tentative timeline for utilization is three years for API expansion and two years for working capital and general corporate purposes. Unutilized funds will be deposited in term deposits with scheduled commercial banks or NBFCs.

Other Board Approvals

In addition to the capital raise, the board approved deviations in the object clause of the initial public offer prospectus, pending shareholder consent. The company also appointed M/s RSM Astute Consulting Private Limited as its internal auditor for FY27, replacing M/s PRSV & Co. LLP, which resigned due to professional pre-occupation. M/s Aakanksha Dubey & Co. was appointed as the scrutinizer for both the EGM and the forthcoming Annual General Meeting (AGM).

Trading Window Closure

Pursuant to the SEBI (Prohibition of Insider Trading) Regulations, 2015, the trading window remains closed for designated persons until 48 hours after the conclusion of the board meeting. The meeting was convened by Vivek Kumar, Company Secretary and Compliance Officer.

Sigachi Industries reported total operating income of ₹121.27 crore for the first quarter of FY27, with net profit standing at ₹8.14 crore. The company’s EBITDA was ₹16.5 crore, reflecting a margin of 13.6%. Management reaffirmed its full-year revenue guidance of ₹650-675 crore, indicating that revenues are expected to rise quarter-on-quarter in the coming periods.

Financial Performance

The Microcrystalline Cellulose (MCC) segment contributed the largest share of revenue at ₹82.74 crore. The API segment recorded revenues of ₹21.68 crore, while the Operations & Maintenance (O&M) vertical contributed ₹13.06 crore. The CFO noted that fixed costs remain constant, which should support margin expansion as revenues increase.

Operational Highlights

Average realization for MCC rose to ₹241.36 per kg in Q1, up from ₹216 per kg in the previous quarter. Overall capacity utilization stood at 76.8%, with the Dahej unit at 76.5% and Jhagadia at 77.16%. Management indicated that utilization is expected to improve quarter-on-quarter through debottlenecking initiatives.

The company’s cellulose-based excipient capacity currently stands at 18,000 metric tons per annum, with exports accounting for over 53.5% of production. A planned 12,000 metric ton capacity expansion at Dahej-2 is on schedule for commissioning by Q2 of FY28, which will raise total capacity to 30,000 metric tons per annum.

Strategic Initiatives

Sigachi launched HiCel SMCC Nutra during the quarter, a combination product targeting flowability and compressibility challenges in nutraceutical formulations. The company also advanced its 1,800-ton Croscarmellose Sodium (CCS) facility at Dahej SEZ, aiming to strengthen its higher-value excipient portfolio.

Regarding working capital, receivable days are currently around 93-94 days, with management targeting a reduction to approximately 90 days by year-end and further down to 75-80 days subsequently.

What the Numbers Show

The MCC segment dominates the revenue mix, contributing roughly 68% of total operating income in Q1. This concentration highlights the importance of the upcoming Dahej-2 expansion; without it, the company relies heavily on debottlenecking existing facilities to meet its aggressive full-year revenue guidance of ₹650-675 crore. Additionally, the significant quarter-on-quarter jump in MCC realizations (from ₹216 to ₹241.36 per kg) suggests improving pricing power or a shift toward higher-value grades, which will be critical for achieving the guided 18% full-year EBITDA margin from the current 13.6% run rate.

Outlook and Guidance

Management confirmed no change to the full-year revenue guidance of ₹650-675 crore. Capex for FY27 is expected to exceed ₹100 crore, with an additional ₹150-200 crore planned for FY28. Funding options include bank finance and potential preferential equity issues. An insurance claim related to a previous incident is expected to be settled by September, either fully with a discount or as an ad-hoc amount.