Senco Gold Ltd IPO subscribed 73.35 times at close

The ₹405 crore IPO of Senco Gold Ltd, consisted of a fresh issue and an offer for sale (OFS). The fresh issue was to the tune of ₹270 crore while the OFS was to the tune of ₹135 crore. The IPO saw fairly steady response on Day-1 and Day-2 of the IPO and closed with very healthy subscription numbers at the close of Day-3. In fact, the company IPO got fully subscribed on the second day of the IPO, although the retail portion got fully subscribed on the first day of the IPO itself. 

As per the combined bid details put out by the BSE at the close of Day-3, Senco Gold Ltd IPO was subscribed at 73.35X overall, with best demand coming from the QIB segment, followed by the HNI / NII segment and the retail segment in that order. In fact, both the institutional segment and the HNI / NII segment saw some very good traction on the last day of the IPO. The HNI portion did do well as there was a visible surge in funding applications and corporate applications coming on the last day of the IPO. All the 3 segments were comfortably oversubscribed. Here are the details of the overall allocation.

As of close of 06th April 2023, out of the 94.19 lakh shares on offer in the IPO (net of anchor), Senco Gold Ltd saw bids for 6,908.54 lakh shares. This implies an overall subscription of 73.35X. The granular break-up of subscriptions was in favour of the QIB investors followed by the HNI / NII investors while the retail portion got lesser subscription among the various categories. QIB bids and NII bids typically gather most of the momentum on the last day, and that was the case in this issue also in the case of QIB bids as well as the HNI / NII bids. Especially, the QIB bids showed a lot of positive traction on the last day of the IPO.

Senco Gold Ltd IPO Subscription Day-3

QIB Portion

Let us first talk about the pre-IPO anchor placement. On 03rd July 2023, Senco Gold Ltd did an anchor placement close to 30% of the IPO size getting absorbed by the anchors. Out of the 1,32,51,410 shares on offer, the anchors picked up 38,32,807 shares accounting for 28.9% of the total IPO size. The anchor placement reporting was made to the BSE late on 03rd July 2023. The IPO of Senco Gold Ltd opened on 04th July 2023 in the price band of ₹301 to ₹317 and closed for subscription on 06th July 2023 (both days inclusive). The entire anchor allocation was made at the upper price band of ₹317. Here are the details of the anchor allocation to those investors getting more than 5% of the anchor quota.

Data Source: BSE Filings

The QIB portion (net of anchor allocation as explained above) has a quota of 26.91 lakh shares of which it has got bids for 4,869.08 lakh shares at the close of Day-3, implying a subscription ratio of 180.94X for QIBs at the close of Day-3. QIB bids typically get bunched on the last day and while the heavy demand for the anchor placement had given an indication of the institutional appetite for the Senco Gold Ltd IPO subscription overall, the actual demand did turn to be quite robust for the IPO.

HNI / NII Portion

The HNI portion got subscribed 64.99X (getting applications for 1,311.62 lakh shares against the quota of 20.18 lakh shares). That is a rather steady response at the close of Day-3 largely because this segment normally sees the maximum response bunched on the last day. Bulk of the funded applications and corporate applications, come in on the last day of the IPO, and that was not exactly visible as the overall HNI / NII portion just about added to its heft on the last day. However, the HNI portion did eventually manage to sail through.

Now the NII/HNI portion is reported in two parts viz. bids below ₹10 lakhs (S-HNI) and bids above ₹10 lakhs (B-HNI). The bids above the ₹10 lakh category (B-HNIs) typically represents most of the major funding customers. If you break up the HNI portion, the above ₹10 lakh bid category got subscribed 68.41X while the below ₹10 lakh bid category (S-HNIs) got subscribed 58.14X. This is just for information and is already part of the overall HNI bids explained in the previous para.

Retail Individuals

The retail portion was subscribed 15.46X at the close of Day-3, showing fairly strong retail appetite for the stock of Senco Gold Ltd. It must be noted that retail allocation is 35% in this IPO. For retail investors; out of the 47.09 lakh shares on offer, valid bids were received for only 727.85 lakh shares, which included bids for 614.18 lakh shares at the cut-off price. The IPO is priced in the band of (₹301-₹317) and has closed for subscription as of the close of Thursday, 06th July 2023.