The Initial Public Offering (IPO) of Senco Gold Ltd, a prominent jewelry retail player, has garnered strong interest from investors, with the IPO being subscribed 2.68 times on the second day. The company aims to raise Rs 405 crore through this IPO, with a price range of Rs 301-317 per share.
Senco Gold Ltd operates 140 showrooms across 13 states, primarily in West Bengal. In addition to its physical stores, the company also sells its products online and exports them to Dubai, Malaysia, and Singapore.
The proceeds from the IPO will be utilized to fund working capital requirements and for general corporate purposes. Of the net proceeds, Rs 196 crore will be allocated towards fulfilling the company’s working capital needs, while the remaining amount will be utilized for general corporate purposes.
The IPO is managed by IIFL Securities Ltd, Ambit Private Ltd, and SBI Capital Markets Ltd. The listing of shares will take place on the BSE and NSE.
Several brokerages have offered their recommendations on the Senco Gold IPO. Ambit Capital has given a subscribe rating, citing the company’s strong brand name, dominant market share in eastern India, and robust financials as factors that position the company for future growth. IIFL Securities has also recommended a subscribe rating, highlighting the company’s track record of growth and potential to benefit from the growth of the jewelry retail sector in India. Choice Broking has also given a subscribe rating, emphasizing the well-managed nature of the company and its strong financial track record.
However, some brokerages have provided a neutral or wait and watch rating for the Senco Gold IPO. These brokerages have raised concerns about the company’s slightly higher valuation and advised investors to wait for the market to cool down before considering investing in the IPO.
In conclusion, the Senco Gold IPO has received a significant response from investors, driven by the company’s strong brand presence and market share. The funds raised through the IPO will support the company’s working capital requirements and facilitate its future growth. Investors are advised to carefully consider broker recommendations and market conditions before making investment decisions.
