Why has this stock (Sigachi Industries) fallen 10% in one trading session?

Sigachi Industries is the “pill filler” of the Global pharma industry as it supplies Microcrystalline Cellulose or MCC and its derivatives to drugmakers in India and abroad. MCC helps enhance the pill size because the actual drug is generally of a very minute quantity. It also helps regulate the absorption rate in the body based on the intended use.

The company’s MCC plant near Hyderabad (Sangareddy) experienced a powerful blast on June 30th, 2025, which led to the deaths of 54 workers. It was devastating, especially for the workers and their families, due to the sheer number of casualties. This huge loss of lives warranted a criminal investigation, which prima facie hinted towards lapses on the part of the company. There were reports of workers requesting safety measures and the replacement of faulty equipment, but the management did not seem to have paid heed. The unit was deemed in-operational for 180 days, and although the company was able to shift a significant portion of production to its units in Gujarat, nothing could replace the lives lost.

On 27th December, 2025, Managing Director and Chief Executive Officer, Amit Raj Sinha, was remanded to police custody in relation to the case. Now this is a serious key personnel risk and hinders operation at a time when the company is already facing operational troubles post-accident.

Before the accident, the stock was trading at around INR 55 per share. Right now, it’s trading at INR 32-33. As per the filing to SEBI, the company has appointed Lijo Stephen Chacko, Deputy Group CEO, as the interim CEO to oversee operations. Please check out our detailed article here.

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