Will Senco Gold deliver listing gains for investors on Friday? Here's what GMP suggests
Senco Gold are likely to be listed on the exchanges on Friday. In line with the robust response to the IPO, the stock is expected to list at a healthy premium, if we go by the trends in the unlisted market. According to market sources, the company's gray market premium (GMP) is around Rs 115-120 a day ahead of the listing.
Considering the upper price band of Rs 317, the debut will be with a 37% premium. However, it is important to note that gray market premiums are just an indicator as to how the company's shares are stacked up in the unlisted market and are subject to change rapidly. «Following the stellar listing of IdeaForge and Cyient DLM and post listing performance Senco Gold is also in the edge of similar listing performance on Friday,» said Prashant Tapse of Mehta Equities.
«While considering the bullish sentiments on Dalal Street, along with stronger response by investors, we are expecting a healthy 35-40% listing gain,» he added. The Rs 405-crore IPO of Senco Gold was subscribed 73.34 times at the close, driven by heavy bidding from qualified institutional buyers on the last day. The part reserved for QIBs was subscribed 180 times.
The retail portion of the issue was subscribed 15.45 times, while the non-institutional category was subscribed 64.98 times. Senco Gold boasts of 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.
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