The ₹405-crore initial public offering of Senco Gold will close for public subscription today. The issue has received a strong response from retail investors. Priced in a band of ₹301-317, investors can bid for a minimum of 47 equity shares. The issue received bids for 2.58 crore shares, as against 94.18 lakh shares on the offer
Issue details
The IPO comprises a fresh issue of equity shares aggregating up to ₹270 crore and a ₹135-crore offer-for-sale (OFS) by SAIF Partners India IV Ltd. At present, SAIF Partners has a 19.23 per cent stake in the jewellery retail chain.
While 50 per cent of the issue size is reserved for qualified institutional buyers (QIBs) and 15 per cent for HNIs (non-institutional investors), 35 per cent is reserved for retail investors.
While the quota reserved for retail investors received 3.67 times subscription, the portion for Non-Institutional Investors (NII) was subscribed 3.58 times. Qualified Institutional Investors, who generally wait till last date, bid for just 28 per cent.
Also read: Senco Gold IPO: Should you subscribe?
Anchor investors
As part of the IPO process, the jewellery retail player has allotted 38,32,807 equity shares to 21 anchor investors, raising close to ₹122 crore at ₹317 a share. Of the QIB portion, 60 per cent is reserved for anchor investors. The anchor was a well-diversified book, with a focus on long-only investors. Key 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.
IIFL Securities, Ambit Private and SBI Capital Markets are the book-running lead managers to the offer.
Business model
The company primarily sells gold and diamond jewellery, besides jewellery made of silver, platinum and precious and semi-precious stones and other metals. Its other offerings include costume jewellery, gold and silver coins and utensils made of silver.
Senco Gold currently has 127 showrooms (70 company-operated showrooms and 57 franchisee showrooms) with a total area of approximately 393,342 sq. ft., in 89 cities and towns across 13 states.
The equity shares are proposed to be listed on the BSE and NSE.
