Senco Gold IPO listing today. Here are the major updates

Senco Gold Ltd shares will be listed on the stock exchanges today. The IPO of Rs 405 crore saw a positive response from all classes of investors, resulting in 73.35 times oversubscribed.

The company set the share price at $317, the upper end of ₹301-317.

The IPO received bids for Rs. 69.08 crore shares against 94.18 thousand shares on offer.

The company proposes to use the net proceeds of the new issue to finance the working capital requirement, which is estimated at ₹196 crore, and balance towards general corporate purposes.

As part of the IPO process, the company has allocated 38.32 thousand shares to 21 anchor investors and has raised around Rs 122 crore.

Investors include Marquee Nippon MF, White Oak, Jupiter Asset Management, Bandhan MF, 3P India Equity Fund (owned by Prashant Jain – the first IPO investment by the fund), Max Life Insurance, Sundaram MF and Franklin Templeton MF.

The company sells jewelry made of gold, diamonds, jewelry made of silver, platinum, precious and semi-precious stones and other metals. Its other offerings include imitation jewelry, gold and silver coins, and silverware.

List of winnings

“We expect a standing gain of 35-40 per cent on the back of the leading position in the East India market and a reasonably discounted demand valuation which leaves something to the table for new investors when compared to peers,” said Research Analyst Prashanth Tapsi, Senior Vice President of Research at Mehta Equities Limited.

However, there are some risks in the highly competitive jewelry sector which is a fragmented and structured business, he said.

He added, “In view of the historical industry trends and economic justifications in the gold and diamond jewelery trading sector, we recommend that dedicated investors book profits if we get gains of more than Rs 40.”

According to Vaibhav Kaushik, Research Analyst, GCL Broking, Senco Gold may list above $450 levels