Senco Gold Opens at 35.6% Premium: All You Need to Know

Senco Gold, a well-known jewelry company in Eastern India, had a successful IPO. The shares of Senco Gold were listed on the stock exchanges at a higher price than the issue price. On the NSE, the stock opened at ₹430 per share, which was 35.6% higher, and on the BSE, it opened at ₹431 per share.

The company had set the price band for the IPO between ₹301 and ₹317 per share.

Anubhuti Mishra, an Equity Research Analyst at Swastika Investmart Ltd., commented on the listing, stating that the IPO had a strong debut with the stock opening at ₹430 per share, a premium of 36% over the upper end of the price band. Mishra recommended existing investors to hold the shares for the long term with a stop loss at ₹387, as the company has good growth prospects.

During the IPO subscription period, which started on Tuesday, July 4, and ended on Thursday, July 4, there was a positive response from qualified institutional buyers, retail investors, and non-institutional investors. The retail portion was subscribed 16.28 times, QIBs subscribed 190.56 times, and NII portion subscribed 68.44 times. Overall, the IPO was subscribed 77.25 times.

Senco Gold's IPO consisted of a fresh issuance of shares worth ₹270 crore and an offer-for-sale of equity shares by investor SAIF Partners India IV at ₹135 crore. The company plans to use the net proceeds for general business needs and working capital requirements.

Before the IPO subscription, the company raised ₹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, Max Life Insurance, Sundaram MF, and Franklin Templeton MF.

Senco Gold currently operates 136 showrooms and stores in 13 states and 96 cities in Eastern India.

The company has shown strong financial performance, with revenue increasing at a two-year CAGR of 24% and profit after tax growing at 61%. In FY23, Senco Gold reported a net profit of ₹158.48 crore compared to ₹129.10 crore in the previous year. Its revenue for the year was ₹4,077.40 crore, up from ₹3,534.64 crore.