Jewellery retailer Senco Gold witnessed a robust debut on the Bombay Stock Exchange (BSE) as its shares opened at Rs 431, reflecting a significant premium of 36% over the IPO price. The initial public offering (IPO) comprised a combination of fresh equity issues and an offer for sale (OFS) portion. The proceeds from the fresh equity issues will be utilized to fund working capital requirements and general corporate purposes.
Senco Gold's shares debuted strongly on the exchanges on Friday, opening at Rs 431 on the BSE and Rs 430 on the NSE, surpassing the IPO issue price of Rs 317. Before the listing, the company's shares were trading at a premium of Rs 120 in the unlisted market.
The IPO, valued at Rs 405 crore, witnessed a remarkable subscription rate of 73.34 times at the close, with significant interest from qualified institutional buyers (QIBs). The QIB portion was oversubscribed by 180 times, while the retail portion was oversubscribed 15.45 times, and the non-institutional category was oversubscribed 64.98 times.
Senco Gold operates an extensive retail network comprising 136 showrooms, including 75 company-owned and 61 franchised stores, spanning 13 states/union territories and 96 cities. While the majority of its showrooms are located in West Bengal, the company offers a diverse range of jewellery crafted from gold, diamonds, silver, platinum, precious and semi-precious stones, and other metals.
Analysts highlight Senco Gold's strong financial track record, consistent dividends, and robust return ratios. The company achieved sales of over Rs 4,000 crore in FY23, with a return on equity (ROE) of 18.9% and a return on capital employed (ROCE) of 14.2% at the end of the last fiscal year.
The IPO was managed by IIFL Securities, Ambit, and SBI Capital Markets as the book-running lead managers, with KFin Technologies serving as the registrar. Senco Gold's successful listing showcases investor confidence in the company's growth prospects and solidifies its position in the jewellery retail market
