On the first day of the week on Monday, a heartbreaking news came from Sangreddy district of Telangana, where a pharma company’s plant located, there was a sharp explosion and there was chaos. By the time the news was written in this accident, 8 people died and many were injured. The accident occurred from the reactor explosion in Sigachi Pharma Facility. Its direct and immediate effect was seen on the shares of Sigachi Industries, which crashed and slipped 15 percent on seeing it.
8 killed, 26 people injured!
First of all, let’s talk about the explosion at Sigachi Pharma’s plant, so let us know that there are Sigachi Pharma plant in Pasmalaram Phase 1 in Medak in Sangreddy district of Telangana. A reactor explosion occurred here on Monday and about eight people died in it, while 26 people are said to be injured. According to reports, the Sangreddy police has given information about the case, saying that when the explosion took place, it was working like the Sigachi Chemicals Industry in Pasmalaran. According to officials, 6 bodies have been found from the accident site, while two injured died in the hospital during treatment.
Crash shared on sight
The effect of this incident in the company’s plant was also seen on Sighachi Industries Share. The stock closed at Rs 55.23 on Friday on the last trading day of last week and on Monday, the pharma stock was opened at Rs 55.17 with a slight decline. After this, it jumped up to Rs 56 during the early trade, but then the news of the accident in the Sigachi plant continued to disintegrate and fell to Rs 47 with a decline of about 15 per cent. Due to this sudden decline in the company’s stock, its market cap also reduced to Rs 1860 crore. Although the market closed, this decline declined slightly, yet the stock fell 11.19 per cent to close at Rs 48.95.
What does Sigachi Industries do?
Sigachi Industries are identified for pharmaceutical expedients and chemicals manufacturing. It was established in the year 1989 and is particularly focused on the construction of microcystline cellulose (MCC), which is used for pharmaceutical and cosmetic products. Due to the steep decline in the company’s shares after the accident, it can be said that this incident can prove to be affecting the company’s production schemes and investors’ sentiments.
IPO made headlines in 2021
It is worth noting that on 15 November 2021, Sigachi Industries made a lot of headlines through its initial public issue (Sigachi Industries IPO) and its debut in the stock market was excellent. The company’s stock was listed at Rs 575 with a strong premium of Rs 252.8 per cent as compared to its IPO price band 163. The pharma company raised Rs 125.43 crore from the market through its IPO.
(Note- Be sure to consult your market experts before any kind of investment in the stock market.)