Senco Gold Lists on NSE, BSE: Senco Gold shares entered the secondary market with a bang on Friday, July 14, listing at a premium to the tune of 36 per cent over the upper end of the jewellery retailer’s IPO price band.
The stock was listed at Rs 431 on the BSE, a premium of 36 per cent over its issue price of Rs 317. The stock kicked off its maiden trading session with a premium of 36 per cent at Rs 430 on the National Stock Exchange (NSE).
A day before its listing, shares of Senco Gold were commanding a premium of Rs 125-130 apiece in the grey market, which dropped around Rs 100-105 by the end of session. The grey market premium was around Rs 135-140 apiece on Wednesday and investors are expecting another listing pop at the debut.
The IPO was open for subscription for three trading days, from July 4 to July 6. Under the IPO, potential investors could bid for Senco Gold shares in the price band of Rs 301-317 apiece in multiples of 47 — translating to Rs 14,147-14,899 per lot.
The public offer received bids for a total of 69.1 crore shares as against the 94.2 lakh shares on offer, with strong participation across investor categories, according to provisional exchange data:
Incorporated in 1994, Senco Gold is a pan-India jewelry retailer, which sells its products under its brand name ‘Senco Gold & Diamonds’ through its 136 showrooms across 96 cities and towns in 13 states throughout the country. It is the largest organized jewelry retailer in eastern India in terms of number of stores.
Senco Gold majorly sells gold and diamond jewelry along with jewelry made of silver, platinum, precious and semi-precious stones, and other metals. It also offers costume jewelry, gold, and silver coins, and utensils made of silver. The company also manufactures machine-made lightweight gold and diamonds jewelry and source jewelry from third-party vendors.
Should Investors Buy, Hold or Sell – Senco Gold Shares
Anubhuti Mishra, Equity Research Analyst at Swastika Investmart Ltd., said: “Senco Gold IPO made a strong debut on the stock exchanges today, listing at Rs 430 per share, a premium of 36% over the upper end of the price band of ₹317. The strong listing was in line with the expectations. Senco Gold is a pan-India jewelry retailer with a strong brand presence. The company has been growing steadily in recent years and is well-positioned to benefit from the growing demand for gold jewelry in India. We are not recommending any fresh buying at this level. However, existing investors can hold the shares for the long term with a stop loss at ₹387, as the company has good growth prospects.”
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