Senco Gold IPO: What GMP signifies after finalisation of share allotment

Senco Gold IPO, which was opened from July 4 to 6, received 77.25 times subscription in total. The public issue was subscribed 16.28 times in the retail category and 190.56 times in the Qualified Institutional Buyers’ (QIB) category. The Non-Institutional Investors’ (NII) portion was booked 68.44 times.

The total size of Senco Gold IPO was ₹405 crore and the company had fixed the price band at ₹301 to ₹317 per equity share for the IPO.

The public issue comprised a fresh issuance of shares worth ₹270 crore and an offer-for-sale (OFS) of equity shares worth ₹135 crore by investor SAIF Partners India IV.

Those who applied for the IPO can check Senco Gold IPO allotment status online here.

Meanwhile, grey market continues to give strong vibes in regard to the Senco Gold IPO. Let’s take a look at what the GMP suggests:

Senco Gold IPO GMP today

According to market observers, Senco Gold IPO grey market premium (GMP) today is ₹130, which is ₹20 lower from its July 11 GMP of ₹150. However, the GMP today is still higher than the GMP of ₹120 on July 10. 

The present grey market premium shows the listing of Senco Gold shares can be around 41% higher than the issue price.

What this GMP mean?

The Senco Gold IPO GMP today is ₹130. This means the shares of Senco Gold are trading higher by ₹130 than its issue price in the unlisted market.

Considering the present GMP of ₹130 and the issue price of ₹317, Senco Gold shares are estimated to be listed at ₹447 apiece on the exchanges, which is around 41% premium to the issue price.

Senco Gold listing date is likely to be July 14 and the shares will be listed on BSE and NSE.  

However, market experts said that GMP is not an ideal indicator for assessing expecting listing premium from any IPO. Grey market is non-regulated and completely speculative market and one should stick to the basics and rely on the fundamentals of the company, they said. 

So, only GMP should not be an ideal way of assessing about the listing premium. 

Also Read: Senco Gold IPO Analysis: As pubic issue sails through, here are some interesting facts about the company

About Senco Gold

Senco Gold sells its products under the “Senco Gold & Diamonds” tradename, through multiple channels, including their 70 company operated showrooms and 57 franchisee showrooms currently, and various online platforms.

The company primarily sells gold and diamond jewellery and sells jewellery made of silver, platinum, precious, and semi-precious stones and other metals. As on March 31, 2023, they have 136 showrooms in 96 cities and towns over 13 states across India. 

Objects of the issue 

The company proposes to utilise the net proceeds from the fresh issue towards funding working capital requirements of the company and general corporate purposes.

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Updated: 12 Jul 2023, 10:38 AM IST