Senco Gold IPO lists at 35.65% premium, but tapers later

Senco Gold IPO had a strong listing on 14th July 2023, listing at a premium of 35.65%, but closed the day below the listing price, although well above the IPO price. It was a day when the Nifty closed 151 points higher while the Sensex closed 502 points higher. While the stock did show some bouts of volatility during the day, still settled well above the IPO price, although slightly below the listing price of the morning. With subscription of about 77.25X  overall and QIB subscription at 190.56X, the listing was expected to be strong, at the very least. Here is the Senco Gold Ltd listing story on 14th July 2023.

The IPO price was fixed at the upper end of the band at ₹317 which was logically expected considering the rather strong 77.25X overall subscription and the 190.56X QIB subscription in the IPO. In addition, the retail portion got subscribed around 16.28 times while the HNI / NII portion also saw 68.44X subscription. The price band for the IPO was ₹301 to ₹317. On 14th July 2023, the stock of Senco Gold Ltd listed on the NSE at a price of ₹430, a strong premium of 35.65% on the IPO issue price of ₹317. On the BSE also, the stock listed at ₹431, a premium of 35.96% to the IPO price.

On the NSE, Senco Gold IPO closed on 14th July 2023 at a price of ₹402.70. That is a first day closing premium of 27.03% on the issue price of ₹317 but a discount of -6.35% on the listing price of ₹430. In fact, the listing price eventually turned out to be a temporary resistance for the stock, although the stock never went below the issue price at any point in the day. On the BSE, the stock closed at ₹404.95. That represents a first day closing premium of 27.74% over the IPO issue price but it represents a discount of -6.04% below the listing price on the stock exchange. On both the exchanges, the stock listed at a strong premium to the IPO issue price but closed Day-1 below the listing price although well above the IPO price. In fact, the stock range was quite wide during the day with the high of the day being much higher than the IPO listing price on both the exchanges. The fall in the stock price post listing could be attributed to profit taking as investors generally tend to be wary when the markets are at new highs as they are now. It looked more like caution driven selling in the markets.

On Day-1 of listing, Senco Gold Ltd touched a high of ₹444 on the NSE and a low of ₹401.20. The volatility sustained through the day, although there was selling pressure quite visible in the second half of the day. In fact, if you look at the range of prices, the stock opening price was fairly distant from the high price of the day as well as the low price of the day although the closing of the day was very close to the low price of the day. The fall was exacerbated by the fact that after a positive opening the markets did face some technical pressure in the second half of the trading session. On Day-1 of listing, the Senco Gold Ltd stock traded a total of 151.16 lakh shares on NSE amounting to value of ₹637.58 crore on the first day.  The order book during the day showed a lot of buying support in the first half combined with a good deal of selling in the second half with the sell orders far exceeding the buy orders in the latter part of the trading session. The pressure virtually got accentuated in the last hour or so. At the close, there were 33,888 unsold shares. The table below captures the pricing in the pre-open session on the NSE.

Data Source: NSE

Let us now turn to the performance of the stock on listing day on the BSE. On Day-1 of listing, Senco Gold Ltd touched a high of ₹443.80 on the BSE and a low of ₹401.40. The volatility sustained through the day, although there was selling pressure quite visible in the second half of the day on the BSE also. In fact, if you look at the range of prices, the stock opening price was fairly distant from the high price of the day as well as the low price of the day although the closing of the day was very close to the low price of the day. The fall was exaggerated by the fact that after a positive opening the markets did face some technical pressure in the second half of the trading session. On Day-1 of listing, the Senco Gold Ltd stock traded a total of 11.08 lakh shares on BSE amounting to value of ₹46.65 crore on the first day.  The order book during the day showed a lot of buying support in the first half combined with a good deal of selling in the second half with the sell orders far exceeding the buy orders in the latter part of the trading session. The pressure virtually got accentuated in the last hour or so on the BSE also. While the volumes on the BSE were not as much as on the NSE, the trend was once again the same.

The order book in the second half of the trading session showed a lot of selling pressure with the sell orders far exceeding the buy orders at any point of time. That make it a sell on rises stock in the second half of the day. However, this can also be attributed to the selling pressure on Friday being a weekend. On the NSE, out of the total 151.16 lakh shares traded during the first day of trading, the deliverable quantity represented 65.65 lakh shares or a deliverable percentage of 43.43% on the NSE. That shows a good deal of delivery selling. Even on the BSE, out of the total 11.08 lakh shares of quantity traded, the deliverable quantity at a gross across client level was 5.02 lakh shares representing total deliverable percentage of 45.30%; which is almost equal to the NSE percentage of delivery.

At the close of Day-1 of listing, Senco Gold Ltd had a market capitalization of ₹3,144.97 crore with free-float market cap of ₹471.75 crore.