Shares of Sigachi Industries remained locked in the upper circuit of 5 per cent on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on Tuesday after making a stellar debut yesterday.

It may be noted that it was one of the biggest ever listings in the history of Indian stock markets as it opened with a premium of over 250 per cent at Rs 575 compared to its issue price of Rs 163 per share.

The shares of the company that manufactures microcrystalline cellulose surged approximately 285 per cent on the second day. The demand for the stock remains so strong that there are hardly any sellers in sight.

On the National Stock Exchange (NSE), Sigachi Industries stock was locked at Rs 628.40, up 5 per cent from the previous day’s closing. On the BSE, too, the shares of the firm were locked at 5 per cent.

As the demand for the stock remains high, most analysts have advised investors to hold the stock if they have been allotted shares after the IPO. Investors who do not hold shares of the company could buy, given the ongoing rally.

Ravi Singhal, Vice-Chairman at GCL Securities said investors who were lucky to get hold of the company’s shares as part of the IPO, should book 50 percent profit and recover their principal and keep the rest 50 percent stocks in their portfolio. “They should hold Sigachi Industries shares for a one-month target of Rs 888 maintaining a stop loss at Rs 530 per share levels,” he added.

Those who failed to get shares of the company should buy the counter at current levels for a one-month target of Rs 888, maintaining a stop loss of Rs 530.

Most analysts are confident about the future of the company as it is the leading manufacturer of cellulose-based excipients in India and plans to expand further. Some analysts also recommended investors with shares of the company to book partial profits and hold the rest for long-term gains.

Sigachi Industries was incorporated in 1989 and it is engaged in the manufacturing of MCC, which is used as an excipient in various industries including pharma, food, nutraceuticals and cosmetic industries. It may be noted that the company manufactures 50 grades of MCC at its manufacturing units in Gujarat and Hyderabad.