Senco Gold debuts Indian Market with a premium of 36% at Rs 431

Senco Gold, a prominent Jewellery retailer, is listed with a premium of 36% at Rs 431 per share on BSE. On the NSE, the stock debuted at Rs 430, indicating an impressive increase of 36% compared to its final listing price of Rs 317.

Currently, the stock is trading at Rs 418 on the BSE. Its intraday highs and lows are Rs 443.80 and Rs 411, respectively. The current market capitalisation of the company is Rs 3246.32 Crore. 

Let’s recapitulate the IPO details and subscription history of the company.

On the final day of bidding, the issue received bids for 69.08 crore equity shares, surpassing the offer size of 94.18 lakh shares by a significant margin of 73.35 times on July 6. The demand for the issue was strong among retail investors and high-net-worth individuals, with their reserved portions being oversubscribed by 15.46 times and 64.98 times respectively.

The portion set aside for qualified institutional buyers (QIB) witnessed exceptional demand and was oversubscribed by an impressive 180.94 times. The subscription period for the issue began on July 4, and by July 5, it had already achieved a subscription of 2.68 times.

The price range for the IPO was set between Rs 301 and Rs 317, with a face value of Rs 10 per share and a lot size of 47 shares. The total size of the company’s IPO was Rs 405 Crore. It consists of a fresh issue of Rs 270 Crore and an offer for sale of Rs 135 Crore by investors SAIF Partners India IV. The SAIF IV has been an investor in the company since 2014 and was having 19.23% shareholding in the company.

Prior to the initial public offering (IPO), the promoters of the company held a shareholding of 76.92%. However, following the IPO, their shareholding has reduced to 68.48%. 

The final share issue price of the company was fixed at Rs 317. It has given a return of 36% on the listing day itself.

Financial Summary

Company Overview 

Senco Gold Limited, an India-based jewellery retailer, specialises in selling a wide range of jewellery crafted from gold, diamonds, silver, platinum, precious and semi-precious stones, as well as other metals. They also offer costume jewellery, gold and silver coins, and silver utensils. With an extensive collection, they provide over 108,000 designs for gold jewellery, more than 46,000 designs for diamond jewellery, and various handcrafted jewellery options.

Their products are available under the brand name Senco Gold & Diamonds and can be purchased through various channels, including approximately 70 Company-operated showrooms and 57 franchisee showrooms. 

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. The stock has already been listed at a premium of 36% both in NSE and BSE. An investor who applied for only listing gains can book their profits. However, investors with a higher risk appetite may hold the shares for the medium to long term could be beneficial, to enjoy the ride.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.