Senco Gold’s Rs 405-crore IPO opened for subscription today. The price band of the issue is fixed at Rs 301-317 per share; the company has raised Rs 121.49 crore from 21 anchor investors. The initial public offer will close on Thursday, July 6. Senco Gold shares’ grey market premium (GMP) soared 38.49% on Tuesday, commanding a premium of Rs 122 over the upper end of the IPO price, implying a listing price of Rs 439 per share.
The share allotment will take place on July 11, while the credit of shares will be on July 13. The shares are expected to be listed on exchanges on Friday, July 14. The company is valued at Rs 2,460 crore on the upper price band. The issue has been booked 0.11 times so far, with total bids of 9,90,102 shares. Retail investors subscribed 0.19 times. The NII portion has been subscribed 0.04 times.
Should you subscribe?
Nirmal Bang – Subscribe
“The IPO is issued at a 15.5x PE valuation based on its FY23 EPS which is at a discount relative to the average PE valuation of its peers. Thus, we recommend ‘SUBSCRIBE’ to the issue for listing gains,” said analysts at Nirmal Bang.
Swastika – Subscribe
“There are some risks involved, such as the highly competitive nature of the market and the volatility of the jewellery market. Nevertheless, the IPO is priced attractively at a P/E of approximately 13x. Taking all factors into account, we will recommend to subscribe this IPO,” said analysts at Swastika.
HEM Securities – Subscribe
“We like the business model of the company & growth rate at which the company has grown it’s topline & bottom line over the period of time. Also, looking after the peer comparison, we find valuations reasonable too. Looking after decent financials & reasonable valuation, we recommend “Subscribe” on the issue,” said analysts at HEM Securities.