Senco Gold IPO grey market premiums rises after allotment; Check latest GMP

Senco Gold has been in a lot of demand in the grey market ahead of its listing. As the allotment of shares for Senco Gold has been announcement, the premium for the listing bound player in the unofficial market has seen a rise of 20 per cent in the last two days.

Last heard, shares of Senco Gold were commanding a premium of Rs 140 apiece in the grey market, against its issue price of Rs 317 per share. The grey market premium was around Rs 115-120 apeice on Monday. The robust premium in the official market is suggesting a stellar listing pop for the investors.

According to the analysts tracking the grey markets, multiple factors are pushing the premium in the unofficial markets higher. The sound fundamentals of the company, strong market position, reasonable valuations, bumper listing of recent IPOs are a big plus for Senco Gold.

The recent listing of ideaForge and Cyient DLM was astounding and both stocks showed further follow-up buying, hinting towards the conviction about the companies. There was not any steep profit booking in these counters, said Abhay Doshi, co-founder of UnlistedArena.

"Senco Gold's valuations were kept reasonable, leaving something on the table for investors. Also, the company boasts a strong position in Eastern India and has a pan-India presence, which suggests strong growth prospects for it," Doshi added. "The positive mood of broader market is another plus for its prospects."

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Senco Gold finalised the basis of allotment of its shares on Tuesday, July 11, 2023. The initial public offering of the pan-India jewelry retailer received a strong response from the investors during the three-day bidding process. The company will be listed at the bourses on Friday, July 14.

Incorporated in 1994, Senco Gold is a pan-India jewelry retailer, which sells its products under its brand name 'Senco Gold & Diamonds' through its 136 showrooms across 96 cities and towns in 13 states throughout the country. It is the largest organized jewelry retailer in eastern India in terms of number of stores.

The Rs 405-crore IPO of Senco Gold was overall subscribed 77.25 times. The issue was open for subscription between July 4-6 in the price range of Rs 301-317 per share. Last heard, Senco Gold was commanding a premium of Rs 125-130 per share in the grey market, which was around Rs 110 on Friday.

The quota reserved for qualified institutional bidders (QIBs) was subscribed a whopping 190.56 times, while the portion for non-institutional bidders (NIIs) was booked 68.44 times. The allocation of retail investors was subscribed 16.28 times during the three-day bidding process.

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Senco Gold majorly sells gold and diamond jewelry along with jewelry made of silver, platinum, precious and semi-precious stones, and other metals. It also offers costume jewelry, gold, and silver coins, and utensils made of silver. The company also manufactures machine-made lightweight gold and diamonds jewelry and source jewelry from third-party vendors.

Brokerage firms are majorly positive on the issue and suggest investors to subscribe for it citing the growth potential, strong market share, sound financial performance and structural shift. However, others believe that the issue is aggressively priced, leaving limited upside potential on the table.

Investors, who had bid for the issue, can check the allotment status on the Bombay Stock Exchange (BSE) website, which is www.bseindia.com/investors/appli_check.aspx. One can check the equity option under issue type and select the company name from the dropbox. Then, one just needs to fill in the application number and PAN card ID to check the allotment status.

The second alternative to check the allotment status is visiting the registrar's portal, which is KFin Technologies Limited in the case of Senco Gold. Investors can also check the allotment status on the website of the registrar at https://kosmic.kfintech.com/ipostatus to see if they have received the shares or not.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)

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