Shares of Senco Gold Ltd will be listed on bourses today. The ₹405-crore IPO witnessed positive response from all categories of investors, resulting in a subscription of 73.35 times.

The company has fixed the share price at ₹317, the upper end of ₹301-317.

The IPO received bids for 69.08 crore shares against the 94.18 lakh shares on offer.

The company proposes to utilise the net proceeds of the fresh issue towards funding the working capital requirement, which is estimated to be ₹196 crore, and the balance towards general corporate purposes.

As part of IPO process, the company allotted 38.32 lakh shares to 21 anchor investors and raised about ₹122 crore.

Marquee investors include Nippon MF, White Oak, Jupiter asset management, Bandhan MF, 3P India Equity Fund (owned by Prashant Jain - 1st IPO investment by the fund), Max Life Insurance, Sundaram MF, and Franklin Templeton MF.    

The company sells gold and diamond jewellery, jewellery made of silver, platinum, precious and semi-precious stones, and other metals. Its other offerings include costume jewellery, gold and silver coins and utensils made of silver.

Listing gains

Prashanth Tapse Research Analyst, Senior-VP-Research at Mehta Equities Ltd, said: “We are expecting a healthy 35-40 per cent listing gain on the back of leading position in Eastern India market and reasonably discounted ask valuation which is leaving something on the table for new investors when compared to its peers.”

However, there are a few risks in the highly competitive jewellery sector which is a fragmented and regulated businesses, he said.

“Considering historic industry trends and economic rationales in the segment of gold and diamond jewellery business, we recommend allotted investors to book profits if we get listing gains over and above Rs 40, he added.”

According to Vaibhav Kaushik, Research Analyst, GCL Broking, Senco Gold may list above the ₹450-levels

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