scorecardresearchSenco Gold IPO sees robust demand on final day, subscribed 31.15 times

Senco Gold IPO sees robust demand on final day, subscribed 31.15 times led by QIBs and NIIs; check GMP

Updated: 06 Jul 2023, 03:15 PM IST
TL;DR.

Senco Gold issue was subscribed 31.15 times at 2:30 pm on the final day of bidding, July 6, 2023. The company has received bids for 27.85 crore shares against 89.43 lakh shares on offer.

Senco Gold issue was subscribed 31.15 times at 2:30 pm on the final day of bidding, July 6, 2023. The company has received bids for 27.85 crore shares against 89.43 lakh shares on offer.

Senco Gold issue was subscribed 31.15 times at 2:30 pm on the final day of bidding, July 6, 2023. The company has received bids for 27.85 crore shares against 89.43 lakh shares on offer.

The initial public offering (IPO) of Senco Gold continued to receive robust response from investors. The issue was subscribed 31.15 times at 2:30 pm on the final day of bidding, July 6, 2023. The company has received bids for 27.85 crore shares against 89.43 lakh shares on offer.

The part reserved for qualified institutional buyers (QIB) was subscribed to the most, 57.42 times, followed by the non-institutional investors' (NII) quota, which saw bids 41.75 times. Meanwhile, the retail investors' portion was the least subscribed among the three, 11.60 times.

The QIB category saw bids for 14.67 crore shares against 25.5 lakh shares on offer for this segment while the NII quota received bids for 8 crore shares versus 19.16 lakh shares offered. The retail portion received bids for 5.18 crore shares against 44.7 lakh on offer for this segment.

GMP: The company's shares witnessed a strong premium of 90 in the grey market on Thursday, indicating a strong demand for the IPO. However, it has been declining consistently, down from 115 in the previous session (July 5) and 125 on July 4.

However, one must note that grey market premium is only an indicator of how the company's shares are performing in the unlisted market and can change quickly.

The 405-crore IPO of jewellery maker Senco Gold is open for subscription between July 4 and July 6 at a price band set in the range of 301-317 per share. This is the first IPO for the month of July and the second half of the current calendar year.

The offer comprises a fresh issuance of shares worth 270 crore and an offer-for-sale (OFS) of 135 crore by investor SAIF Partners India IV.

The net proceeds from the issue shall be utilised towards funding the working capital requirements of the company, and general corporate purposes.

Incorporated in 1994, Senco Gold Limited is a pan-India jewellery retail player with a legacy of more than five decades. It is the largest organised jewellery retail player in the eastern region of India based on the number of stores and among eastern India-based jewellery retailers, they have the widest geographical footprint in non-eastern states.

The company has a network of 136 stores as on Mar’23 out of which 75 are company-operated and 61 are franchisee showrooms. The products are sold under its brand name 'Senco Gold & Diamonds'.

Most brokerages assigned a ‘subscribe’ rating to the issue on the back of a strong brand name and a five-decade legacy. Strong financial performance, robust growth outlook and the attractively priced IPO also kept the brokerages positive.

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First Published: 06 Jul 2023, 03:15 PM IST