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Senco Gold Ltd witnessed a stellar debut on the stock exchanges as its shares opened at a premium of 35.6% on both the NSE and BSE. The IPO received high demand, with the retail portion subscribed 16.28 times and the total issue subscribed 77.25 times.
The stock opened at ₹430 per share on the NSE, showing a significant increase from the issue price, while on the BSE, it opened at ₹431 per share. Senco Gold had set the price band for the IPO at ₹301 to ₹317 per share.
Market analysts had predicted a substantial listing for Senco Gold. However, they cautioned against fresh buying at the current level. Considering the company's promising growth prospects, existing investors were advised to hold the shares for the long term with a stop loss at ₹387.
During the IPO subscription period, which closed on July 4, Senco Gold witnessed high demand from qualified institutional buyers, retail investors, and non-institutional investors. The retail portion was subscribed 16.28 times, QIBs 190.56 times, and the NII portion 68.44 times. Overall, the IPO was subscribed 77.25 times.
Senco Gold's IPO comprises a fresh issuance of shares worth ₹270 crore. The company intends to utilize the net proceeds from the IPO to fulfill general business requirements and working capital needs.
Before the IPO subscription, Senco Gold raised ₹121.50 crore from 21 anchor investors, such as Nippon MF, White Oak, Jupiter Asset Management, and Franklin Templeton MF. The company is a renowned jeweler in Eastern India, operating 136 showrooms and stores across 13 states and UTs.
Senco Gold has demonstrated strong financial performance, with a two-year compound annual growth rate (CAGR) of 24% for revenue and 61% for profit after tax. During the fiscal year 2023, the company's net profit amounted to ₹158.48 crore, exhibiting an increase from ₹129.10 crore in the preceding year.
Let‘s look forward and see what growth Senco Glod brings to the India Jewelry market.
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