The initial public offering (IPO) of Senco Gold continued to receive robust response from investors. The issue was subscribed 1.79 times at 2:30 pm on Day 2 of bidding, July 5, 2023. The company has received bids for 1.6 crore shares against 89.43 lakh shares on offer.
The part reserved for retail investors was subscribed to the most, 2.74 times, followed by the non-institutional investors' (NII) quota, which saw bids 1.8 times. Meanwhile, the qualified institutional buyers' (QIB) portion saw weak reception and was subscribed just 13 percent.
The retail portion received bids for 1.22 crore shares against 44.7 lakh on offer for this segment while the NII quota received bids for 34.49 lakh shares versus 19.16 lakh shares offered. However, the QIB category saw bids for 3.3 lakh shares against 25.5 lakh shares on offer for this segment.
GMP: The company's shares witnessed a strong premium of ₹115 in the grey market on Wednesday (July 5), indicating a strong demand for the IPO. However, it fell from ₹125 in the previous session (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 utilized 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 a 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'.
Over FY21-23, the company’s revenue, EBITDA and adj PAT have grown at a CAGR of 23.8 percent, 34.4 percent, and 60.6 percent, respectively.
Most brokerages have 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.
