Senco Gold IPO subscribed 6.98 times so far on last day of bidding process
The retail portion of the issue was subscribed at 7.23 times. The non-institutional portion was subscribed 12.5 times, while the qualified institutional buyers' portion was subscribed 2.39 times. According to market analysts, the company's shares are trading at a premium of Rs 90-92 in the unlisted market.
The company is offering its shares in the price range of Rs 301-317, and investors can bid for a minimum of 47 shares and in multiples thereof. Ahead of the IPO, the company raised Rs 121 crore in the anchor round, which saw the participation of marquee investors, including Nippon MF, White Oak, Jupiter asset management, Bandhan MF, and 3P India Equity Fund, among others. Most analysts advised investors to subscribe to the issue of robust financials and reasonable valuations.
«At the upper price band, the company is valued at a P/E of 16x with a market cap of Rs 24,605 million post issue of equity shares and return on net worth of 18.9%. We believe that the issue is fairly priced and recommend „Subscribe – Long Term“ rating to the IPO,» brokerage firm Anand Rathi said. Senco Gold boasts an extensive retail network of 136 showrooms (75 company-owned and 61 franchised), with store networks in 13 states/UTs across 96 cities.
However, around 63% of the company's showrooms are located in West Bengal. Specialising in the sale of gold and diamonds, the company also offers an extensive selection of jewellery crafted from silver, platinum, precious and semi-precious stones, and various other metals. The company's topline and bottom line grew at a three-year CAGR of 19% and 20%, respectively.
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