The Senco Gold public issue has recorded the highest subscription after Ideaforge Technology this calendar year. The Kolkata-based jewellery retailer is expected to declare the share allotment in the next couple of days, while the basis of allotment of shares will be finalised July 11.
The public issue was subscribed 73.35 times during July 4-6, with support from all kinds of investors. Qualified institutional investors played a key role behind this massive subscription numbers, buying shares 181 times the allotted quota. High networth individuals have bid 65 times the portion set aside for them, and the part reserved for retail investors was booked 15.5 times.
Considering the huge subscription demand and having more positives than negatives, the grey market also seems strong for the jewellery brand. Its shares were available at around 35 percent premium over the expected issue price of Rs 317, in the grey market, analysts said on anonymity.
The grey market is an unofficial market where IPO shares can be bought and sold till their listing on the bourses. The listing of shares is going to take place on July 14, as per the IPO schedule in the draft papers.
Other reasons that boosted the grey market premium of Senco Gold included its strong presence and brand name in eastern India with extensive retail network of 136 showrooms, reasonable valuations compared to listed peers such as Titan Company, Kalyan Jewellers India, a legacy of over five decades, asset-light franchise model, and rising urbanisation with increasing disposable income levels.
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Investors participated in the offer can check their allotment status either on the BSE website or the portal of the IPO registrar.
On the BSE website:
a) Select issue type 'Equity', and issue name 'Senco Gold Limited'
b) Enter either 'Application Number' or 'PAN Number'
c) Check box 'I am not a robot' and finally click on 'Search' button
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On the IPO registrar's portal:
a) Select IPO 'Senco Gold Limited' in the dropdown
b) Select and accordingly enter either 'Application Number', or 'Demat Account', or 'PAN Number'
c) Enter captcha and finally click on 'Submit' button
Equity shares will be transferred to demat accounts of eligible investors by July 13. They will get shares proportionately due to tremendous demand for the issue. Eligible investor will get atleast 1 lot of Senco Gold comprising 47 shares.
Unsuccessful participants will get the refunds in their bank accounts by July 12.
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The Rs 405-crore public issue of Senco Gold comprised of a fresh issue of Rs 270 crore and an offer-for-sale of Rs 135 crore by investor SAIF Partners India IV who has been an investor in the company since 2014.
The price band for the offer was Rs 301-317 per share.
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