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The initial public offering (IPO) of Senco Gold Ltd received a good response from all sections of investors, resulting in a subscription of 73.35 times on the final day of the three-day share sale period.
The IPO received bids for 69,08,54,927 shares against the 94,18,603 shares on offer, according to the latest data available on the BSE at the time of filing the report.
Qualified Institutional Buyers (QIBs) showed strong interest, leading the subscription over 180.94 times against the allocated 26,91,028 shares. The non-institutional investors (NIIs) portion was subscribed 64.99 times, while retail investors subscribed 15.46 times.
Senco Gold’s ₹405 crore IPO, which opened for subscription on July 4, consists of a fresh issue of equity shares aggregating up to ₹270 crore and an offer-for-sale of equity shares up to ₹135 crore by SAIF Partners India IV Ltd.
The company fixed a price band of ₹301–317 per share for the issue. An investor had the opportunity to bid for a minimum of 47 equity shares and in multiples thereof.
The company proposes to utilize the net proceeds of the fresh issue towards funding the working capital requirement, estimated to be ₹196 crore and the balance amount towards general corporate purposes. The company had on Monday allotted 38,32,807 equity shares to 21 anchor investors and raised close to ₹122 crore at the upper price band of ₹317 per equity share.
As on March 31, 2023, Senco has 136 showrooms (including the 75 company operated and 61 franchisees owned) in 96 cities and towns over 13 states across India. Some of its franchisee showrooms are located in areas other than metros and Tier-I, providing it greater reach in Tier-II locations. The company’s revenue from operations grew at a CAGR of around 24 per cent from ₹2,660 crore as of March 31 2021, to ₹4,077 crore as of March 31 2023.
The company plans to open as many as 13 new stores over the next 12-18 months, primarily spread across the eastern and northern parts of the country.
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