Senco Gold shares rally up to 4% as pre-IPO lock-in deadline inches closer

Jewellery retailer Senco Gold Ltd shares rallied up to 4 percent on Thursday as the pre-IPO lock-in period for investors is going to end soon.

The stock opened more than 1 percent down, but later pared losses to touch a high of Rs 415.70 on BSE, reflecting gains of 3.8 percent over the previous close.

The Kolkata-based jewellery retailer listed its shares on bourses on July 14 after a successful initial public offer.

The shares listed at a premium of around 36 percent and touched all-time high of Rs 443.80 on that day.

From the first day's close, the stock has gained around 4 percent.

The lock-in period for anchor investors for 50 per cent of shares is 30 days. The lock-in period is going to end on August 23.  

The company will announce its first quarter results on August 14.

Strong subscription of IPO

The Rs 405-crore initial share sale offer of the jewellery retailer was subscribed more than 77 times. The IPO was open for subscription from July 4 -6 in the price band of Rs 301-317 apiece.

Before that, Senco Gold had raised Rs 121 crore from anchor investors which included Nippon India Small Cap Fund, Jupiter India Fund, 3P India Equity Fund I, Max Life Insurance, Bandhan Emerging Business Fund and others.

The IPO had a fresh issue of up to Rs 270 crore and an offer for sale of up to Rs 135 crore.

Of the Rs 270 crore, the company had proposed to use Rs 196 crore towards funding working capital requirements and general corporate purposes.

The Kolkata-based firm has 140 showrooms across 13 states and 63 per cent of them are located in West Bengal. It also sells its products through various online platforms and undertakes wholesale exports of its jewellery, primarily to Dubai, Malaysia and Singapore.

Senco Gold shares were trading at Rs 409 apiece, up 2.15 per cent, on BSE at 12:34 PM.