Senco Gold Ltd shares will be listed on the stock exchanges today. The IPO, valued at 405 crore, was well received by all investor categories and resulted in a 73.35x subscription.
The company has priced the share at ₹317, the high end of ₹301-317.
The IPO received offers for 69.08 crore shares versus the 94.18 lakh shares offered.
The Company proposes to use the net proceeds from the new offering to fund working capital needs, estimated at ₹196 crore, and the remainder for general corporate purposes.
As part of the IPO process, the company allotted 38.32 lakh shares to 21 anchor investors, raising around ₹122 crore.
Key investors include Nippon MF, White Oak, Jupiter Asset Management, Bandhan MF, 3P India Equity Fund (owned by Prashant Jain – Fund’s first IPO investment), Max Life Insurance, Sundaram MF and Franklin Templeton MF.
The company sells gold and diamond jewelry, jewelry made of silver, platinum, precious and semi-precious stones and other metals. Other items on offer include costume jewellery, gold and silver coins, and everyday objects made of silver.
listing gains
Prashanth Tapse Research Analyst, Senior VP Research at Mehta Equities Ltd, said: “We are expecting a whopping 35-40 per cent stock market gain due to the leading position in the East Indian market and the reasonably discounted ask valuation leaving something open in comparison.” to its competitors the best provider for new investors.”
However, there are some risks in the highly competitive jewelry sector, which is a fragmented and regulated business, he said.
“Considering historical industry trends and economic reasons in the segment of gold and diamond jewelry business, we recommend allocated investors to book profits if we make listing profits above Rs 40,” he added.
According to Vaibhav Kaushik, Research Analyst at GCL Broking, Senco Gold could trade above the ₹450 level
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