Fine jewellery business Senco Gold saw its initial public offering subscribed by over 77 times on July 6, its third and final day of bidding. The business plans to harness the IPO to springboard further brick-and-mortar expansion across India.
Senco Gold and Diamonds’ IPO received bids for 68.97 crore shares as compared to the 94.18 lakh shares which were on offer, Livemint reported. The IPO was subscribed 16.05 times in the retail category and 68.38 times in the non-institutional investors category.
A number of analysts gave positive advice regarding subscribing to the IPO which no doubt bolstered interest. “Improving economic growth, rising urbanisation, increasing disposable income levels, and mandatory hallmarking is positive for the organised players,” analysts at Geogit Financial Services told the New Indian Express. “A strong brand name and a legacy of over five decades, strong company-operated showrooms, and an established asset-light ‘franchise’ model are expected to benefit Senco Gold. Therefore, we assign a ‘Subscribe’ rating for the issue.”
The business plans to use the funds towards continuing to open stores across India to reach new customers and increase brand visibility. The IPO launched on July 4 and Senco Gold had already raised Rs 121.5 crore from a total of 21 anchor investors before the IPO went live.
“With the money that we will be raising, it will be used to fund our growth in India, for store openings and maybe a little to raise inventory in the existing stores as well,” Senco Gold’s CEO and managing director Suvankar Sen told ET Online about future plans.
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