Incorporated in 1994, Senco Gold is a pan-India jewelry retailer, which sells its products through its 136 showrooms across 96 cities and towns in 13 states. 
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Incorporated in 1994, Senco Gold is a pan-India jewelry retailer, which sells its products through its 136 showrooms across 96 cities and towns in 13 states. Ahead of its listing at Dalal Street on Friday, Senco Gold continues to hold its ground in the grey market as the premium in the unofficial market continues to remain firm, despite a marginal correction. Senco Gold will make its debut at Dalal Street on Friday, July 14. Last heard, shares of Senco Gold were commanding a premium of Rs 125-130 apiece in the grey market, about 40 per cent higher from its issue price of Rs 317 per share. The grey market premium was around Rs 135-140 apiece on Wednesday and investors are expecting another listing pop at the debut. Analysts tracking the grey market are positive on the company, thanks to a host of factors supporting its grey market premium. Other than positive broader markets, they are citing its sound business fundamentals, strong market position, reasonable valuations and recent bumper listings as key triggers for another robust debut. The recent listing of ideaForge and Cyient DLM was astounding and both stocks showed further follow-up buying, hinting towards the conviction about the companies. There was not any steep profit booking in these counters, said Abhay Doshi, co-founder of UnlistedArena. "Senco Gold's valuations were kept reasonable, leaving something on the table for investors. Also, the company boasts a strong position in Eastern India and has a pan-India presence, which suggests strong growth prospects for it," Doshi added. "The positive mood of the broader market is another plus for its prospects." The Rs 405-crore IPO of Senco Gold was overall subscribed 77.25 times. The issue of pan-India jewelry retailer was open for subscription between July 4-6 in the price range of Rs 301-317 per share. Mahesh M Ojha, AVP Research & BD at Hensex Securities believes that the company has great potential for growth with the widest geographical footprint in non-eastern states and also undertakes wholesale exports of their jewelry primarily to Dubai, Malaysia and Singapore. "The Blockbuster listing performances from all the IPO lined up this month have been an icing on the cake. We estimate the company to list at least 40-45 per cent in the upside. Investors shall book 100 per cent profits on the listing day itself," he added. The quota reserved for qualified institutional bidders (QIBs) was subscribed a whopping 190.56 times, while the portion for non-institutional bidders (NIIs) was booked 68.44 times. The allocation of retail investors was subscribed 16.28 times during the three-day bidding process. Incorporated in 1994, Senco Gold is a pan-India jewelry retailer, which sells its products under its brand name 'Senco Gold & Diamonds' through its 136 showrooms across 96 cities and towns in 13 states throughout the country. It is the largest organized jewelry retailer in eastern India in terms of number of stores. The grey market premium for the Senco Gold IPO suggests that the stock is likely to list at Rs. 441, a healthy premium of nearly 40 per cent over the issue price of Rs.317 per share. This is justified by the strong demand for the IPO, which was subscribed 77.25 times, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart . "The company has also been growing its business steadily in recent years and is well-positioned to benefit from the growing demand for gold jewellery in India. While we have a positive view of the stock, we do not recommend a fresh buy on listing day, as the stock is likely to be priced at a higher premium but existing investors can hold the shares for the long term," she said. Senco Gold majorly sells gold and diamond jewelry along with jewelry made of silver, platinum, precious and semi-precious stones, and other metals. It also offers costume jewelry, gold, and silver coins, and utensils made of silver. The company also manufactures machine-made lightweight gold and diamonds jewelry and source jewelry from third-party vendors.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Business Today)
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