Senco Gold Ltd, a prominent jeweler in Eastern India, witnessed a remarkable debut on the stock exchanges as its shares opened at a 35.6% premium. Stock listed at ₹430 per share on NSE, and ₹431 per share on BSE, notably higher than the issue price.
The company fixed the price band for IPO at ₹301 to ₹317 per share. The strong listing of Senco Gold's IPO aligned with expectations, garnering attention from investors. However, experts are advising against fresh buying at this level. Existing investors, on the other hand, are encouraged to hold their shares for the long term, with a suggested stop loss at ₹387, considering the company's promising growth prospects.
During the subscription period, which lasted from July 4 to July 6, the IPO received an overwhelmingly positive response from various investor categories. Retail investors subscribed to the offering 16.28 times, qualified institutional buyers (QIBs) subscribed 190.56 times, and non-institutional investors (NIIs) subscribed 68.44 times. Overall, the IPO was subscribed 77.25 times, indicating the strong demand for Senco Gold shares.
During the initial public offering (IPO), Senco Gold issued new shares valued at ₹270 crore and SAIF Partners India IV sold equity shares worth ₹135 crore. Funds raised from IPO will be used to support company's general business operations and meet its working capital requirements.
Before the IPO, the company raised ₹121.50 crore from 21 anchor investors, including prominent names such as Nippon MF, White Oak, Jupiter asset management, and Franklin Templeton MF. This demonstrated the confidence of institutional investors in Senco Gold's potential.
With a vast retail network of 136 showrooms and store networks across 13 states and union territories, Senco Gold has established a strong presence in Eastern India. Company achieved impressive financial performance, with a 2-year CAGR of 24% for revenue and 61% for profit after tax. In FY23, Senco Gold reported a net profit of ₹158.48 crore, an increase from ₹129.10 crore the previous year. Revenue for year stood at ₹4,077.40 crore, surpassing previous year's ₹3,534.64 crore.
Investors and market participants are closely watching the performance of Senco Gold shares following its successful listing. The strong debut and the company's solid financial track record are creating anticipation for its future growth and expansion in the jewelry market.