Senco Gold IPO has been subscribed more than 18.8 times on July 6, the third and the last day of the bidding process.
The initial public offering (IPO) of jewellery brand Senco Gold is subscribed 18.8 times in total so far as the issue received bids for 16.25 crore shares as compared to 94.18 lakh shares on the offer, till 1:30 pm.
The public issue was subscribed 10.38 times in the retail category and 31.50 times in the non-institutional investors (NII) category. Qualified Institutional Investors’ (QIB) portion was booked 21.83 times so far.
The ₹405-crore Senco Gold IPO opened on Tuesday, July 4, and will remain open for public subscription till July 6. The company already raised ₹121.50 crore from 21 anchor investors ahead of the IPO.
The company fixed the price band at ₹301 to ₹317 per equity share for the IPO that comprises a fresh issuance of shares worth ₹270 crore and an offer-for-sale (OFS) of equity shares worth ₹135 crore by investor SAIF Partners India IV.
Most analysts have recommended subscribing to the issues given its strong brand name, better financial performance and being well placed to benefit from the expected growth rate in the jewellery industry and also a likely beneficiary from structural shift from un-organised to organised sector.
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Geojit Financial Services believes improving economic growth, rising urbanisation, increasing disposable income levels, and mandatory hallmarking are positive for the organized players in the sector.
“A strong brand name and a legacy of over five decades, strong company-operated showrooms, and an established asset-light ‘franchise’ model are expected to benefit SGL. Therefore, we assign a “Subscribe” rating for the issue on a medium- to long-term basis,” it said.
Disclaimer: The views and recommendations given in this article are those of individual analysts and brokerage firms. These do not represent the views of Mint. We advise investors to check with certified experts before taking any investment decisions.
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Updated: 06 Jul 2023, 01:40 PM IST