Senco Gold Ltd, a renowned jeweler in Eastern India, had a successful initial public offering (IPO) as its shares made an impressive debut on the stock exchanges. The stock listed at ₹430 per share on the NSE, reflecting a premium of 35.6 percent over the issue price, while on the BSE, it listed at ₹431 per share.
The IPO had a price band of ₹301 to ₹317 per share. Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd, commented on the strong listing, stating that the shares opened at ₹430 per share, a premium of 36% over the upper end of the price band (₹317). While fresh buying is not recommended at this level, existing investors are advised to hold the shares for the long term, setting a stop loss at ₹387, given the company’s promising growth prospects.
During the subscription period, which ran from Tuesday, July 4, to Thursday, July 4, the IPO received a positive response from qualified institutional buyers (QIBs), retail investors, and non-institutional investors (NIIs). Retail investors subscribed to the IPO 16.28 times, QIBs subscribed 190.56 times, and the NII portion was subscribed 68.44 times. Overall, the IPO was oversubscribed 77.25 times.
The company intends to utilize the net proceeds from the new issue to meet general business requirements and working capital needs.
Before the IPO, Senco Gold secured ₹121.50 crore from 21 anchor investors, including well-known names like Nippon MF, White Oak, Jupiter asset management, Bandhan MF, 3P India Equity Fund (Prashant Jain’s fund), Max Life Insurance, Sundaram MF, and Franklin Templeton MF.
With a significant customer base, Senco Gold operates a vast retail network of 136 showrooms and store networks across 13 states/union territories and 96 cities in Eastern India.
The company has demonstrated strong financial performance, achieving a two-year compound annual growth rate (CAGR) of 24% for revenue and 61% for profit after tax. In FY23, Senco Gold reported a net profit of ₹158.48 crore, compared to ₹129.10 crore the previous year, while its revenue increased to ₹4,077.40 crore from ₹3,534.64 crore.