In recent news, Senco Gold IPO (initial public offering) has garnered significant attention in the market. With subscriptions reaching 69% on the first day and the retail portion being fully booked, investors are closely following the developments of this IPO. This article will provide a comprehensive overview of the Senco Gold IPO, including subscription details, pricing, market outlook, and more.
Subscription Details and Pricing
Subscriptions and Categories
On the first day of the bidding process, the Senco Gold IPO received bids for 65,28,018 shares against the 94,18,603 shares on the block. The retail portion of the IPO was fully subscribed, with a subscription rate of 1.12 times. The high net worth individual and non-institutional investor (HNI-NII) portion witnessed a subscription rate of 62%. Within the HNI-NII portion, the Rs 2-10 Lakh category received bids at a rate of 1.23 times, while the Rs 10 lakh-plus category received bids at a rate of 32%.
Grey Market Premium (GMP)
The grey market premium (GMP) for the unlisted stock of Senco Gold has seen a significant rise. As of the latest reports, the GMP stands at Rs 124, surpassing the previous session's level of Rs 122. This increase in GMP indicates positive market sentiment and investor interest in the IPO.
Pricing and Offer Details
The Senco Gold IPO consists of fresh equity shares valued up to Rs 270 crore, along with an offer-for-sale (OFS) of Rs 135 crore shares. The IPO is being sold within the price band of Rs 301-317. Retail investors who wish to subscribe to the issue are required to bid for at least one lot, which includes 47 equity shares.
Market Outlook and Expert Opinions
Reliance Securities' View
Reliance Securities analyzed the IPO's valuation and market prospects. The IPO was valued at 15.5 times earnings per share (EPS) and 10.1 times EV/Ebitda on an FY23 basis. The brokerage firm deemed these valuations reasonable. However, Reliance Securities also highlighted the challenge posed by Senco Gold's higher concentration in the Eastern region. The company's expansion plans into other regions may require additional time to enhance brand recall and customer base. Nevertheless, Reliance Securities stated that market growth presents an opportunity for future expansion. In terms of valuation, the current price leaves limited upside, and the IPO is considered to be fairly valued.
Choice Broking's Assessment
Choice Broking, on the other hand, views Senco Gold favorably in terms of its market position, product offerings, and operations. The brokerage firm acknowledges Senco Gold's dominant position in the eastern part of India and its diversified product range. Considering these factors, Choice Broking is optimistic about the company's medium-term outlook. The firm has assigned a "Subscribe" recommendation to the Senco Gold IPO.
Manufacturing and Export Capabilities
Senco Gold operates a manufacturing facility located at the Gems and Jewellery Park in Ankurhati, Howrah, West Bengal. The company primarily undertakes wholesale exports of its jewelry to destinations like Dubai, Malaysia, and Singapore. As of March 31, 2023, Senco Gold employed 2,138 individuals and maintained 136 showrooms across 96 cities and towns in 13 states across
Additionally, it is crucial to examine the factors influencing Senco Gold's IPO performance. Market sentiment, investor demand, and prevailing economic conditions play a significant role in determining the subscription levels and grey market premium. With its rich heritage, strong brand presence, and diversified product offerings, Senco Gold is well-positioned to attract investor interest.
Furthermore, its expansion plans, focus on digital transformation, and efforts to tap into emerging markets bode well for its long-term growth prospects. As the IPO progresses, staying updated on the latest developments will enable investors to gauge the potential returns and make informed investment choices.
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