Senco Gold QIP Opens To Raise Rs 500 Crore
The fundraiser will enable Senco Gold to carry on with its expansion plan of opening 18 to 20 stores every year.
Senco Gold Ltd. approved the opening of its qualified institutional placement to raise Rs 500 crore on Tuesday. The floor price has been set at Rs 1,139.4 per share, a marginal discount of 0.33% to the last closing price on the BSE.
The company may, at its discretion, offer a discount of no more than 5% on the floor price for the QIP, the jewellery retailer said in an exchange filing said.
The jewellery company approved and adopted the preliminary placement document together with the application form, it said.
The company in its exchange filing on Oct. 5 had indicated that the board had approved the fundraise worth Rs 500 crore via a qualified institutional placement.
Senco Gold's Managing Director and Chief Executive Officer Suvankar Sen had previously told NDTV Profit that they were planning to raise funds of up to Rs 450 crore from the market. The fundraiser will enable Senco Gold to carry on with its expansion plan of opening 18 to 20 stores every year, the top executive said.
Gold prices in India have seen a sharp rise after the US Federal Reserve cut its interest rates by 50 basis points in September. The upward trend in pricing is also a result of the wars in the Middle East. The price of 22-carat gold in India on Wednesday was Rs 78,460 per 10 grams.
Senco Gold stock has risen 60% during the last 12 months and has advanced by 67% on a year-to-date basis. The relative strength index currently stands at 51.
All six analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 29%.
