Star investor Prashant Jain picks up stake in Senco Gold ahead of IPO
IPO, Senco Gold has raised Rs 121 crore in the anchor round, which saw participation of marquee investors like Nippon MF, White Oak, Jupiter asset management, Bandhan MF and 3P India Equity Fund that is owned by Prashant Jain. This is the first IPO investment for 3P India Equity Fund, which picked up 9.22% of the anchor investor portion. The company has allotted about 38.32 lakh equity shares to 21 anchor investors at the upper price band of Rs 317 per unit.
Of the total, about 15.91 lakh shares were allocated to 5 domestic mutual funds through a total of 11 schemes. The issue, which opens on Tuesday and closes on July 6, comprises fresh equity issue of Rs 270 crore and an OFS segment of up to Rs 135 crore. Of the fresh issue net proceeds, Rs 196 crore will be utilised for funding working capital, and the remaining for other general corporate purposes.
About 50% of the net offer is reserved for the QIB portion, 15% for NII category and 35% for the retail portion. The net proceeds from the issue will be used for funding working capital requirements of the company and other general corporate purposes. Most analysts advised investors to subscribe to the issue on robust financials and reasonable valuations.
«We have kept a conservative valuation for the IPO, since we wanted to keep a buffer for investors to earn once the stock is listed. The markets have started rising in recent days, but our IPO pricing process has been done over a year,» said Suvankar Sen, MD and CEO, Senco Gold. At the upper price band of Rs 317, Senco Gold is available at a P/E of 15.5x its FY23 earnings, which is lower than industry peers' valuations, Geojit Financial Services said, while assigning a «subscribe» rating to the offer.IIFL Securities,
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