Senco Gold Ltd, a prominent pan-India jewelry retailer, witnessed a remarkable stock market debut as its shares listed at a significant premium on Friday. The company's IPO, which had a price band of ₹301 to ₹317 per share, opened at ₹430 per share on the National Stock Exchange (NSE) and ₹431 per share on the Bombay Stock Exchange (BSE), representing a premium of 35.6% over the issue price.
The three-day subscription period for Senco Gold's IPO, which ran from July 4 to July 6, garnered overwhelming interest from investors across various categories. The retail investors' portion was subscribed a staggering 16.28 times, while qualified institutional buyers (QIBs) showed immense confidence by subscribing 190.56 times. Non-institutional investors (NIIs) also displayed strong interest, subscribing 68.44 times. Overall, the IPO received a remarkable 77.25 times subscription.
The IPO enabled Senco Gold to raise ₹270 crore through the issuance of fresh shares, while investor SAIF Partners India IV divested ₹135 crore worth of equity shares through an offer-for-sale (OFS). The net proceeds from the IPO will be utilized to meet general business needs and cater to the company's working capital requirements.
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd, expressed satisfaction with the strong listing, stating, "Senco Gold IPO made a strong debut on the stock exchanges today, listing at ₹430 per share, a premium of 36% over the upper end of the price band of ₹317." Mishra recommended existing investors to hold their shares for the long term, citing the company's promising growth prospects.
Established in 1994, Senco Gold has emerged as a prominent jewelry retailer with a vast network of 136 showrooms spread across 96 cities and towns in 13 states. It is the largest organized jewelry retailer in eastern India in terms of store count. The company offers a diverse range of jewelry, including gold, diamond, silver, platinum, and jewelry adorned with precious and semi-precious stones.
Senco Gold's financial performance has been impressive, with a two-year compound annual growth rate (CAGR) of 24% for revenue and a remarkable 61% for profit after tax. In the fiscal year 2022-23, the company reported a net profit of ₹158.48 crore, a significant increase from ₹129.10 crore in the previous year. Its revenue also witnessed substantial growth, reaching ₹4,077.40 crore compared to ₹3,534.64 crore in the preceding year.
It is very crucial to note that stock prices are subject to high volatility and can fluctuate rapidly. Investors are advised to stay informed by referring to reliable financial sources or consulting with financial advisors before making any investment decisions.
Senco Gold's strong market debut highlights investor confidence in the company's growth prospects and positions it for further success in the jewelry retail industry.
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