Senco Gold Announces 1:2 Stock Split, Plans Rs 500 Cr QIP
Senco Gold announces a 1:2 stock split and plans to raise Rs 500 crore through a Qualified Institutional Placement (QIP), driving its shares to an all-time high. Discover how this could benefit investors.
Jewellery retailer Senco Gold made headlines on Friday with its announcement of significant financial strategies aimed at capital growth and shareholder value enhancement. The company's board of directors has greenlighted a plan to raise up to Rs 500 crore through a Qualified Institutional Placement (QIP) and implement a stock split.
Following the announcement, shares of Senco Gold surged to an all-time high, reaching Rs 1,544 during Monday’s trading session – a nearly 5x jump from its IPO price of Rs 317.
Details and Timeline of the Stock Split
In a strategic move to enhance liquidity and make shares more accessible, Senco Gold will execute a 1:2 stock split. Currently, each share of Senco Gold carries a face value of Rs 10. Post-split, this will change to Rs 5 per share.
This marks the company's first stock split since its public debut in July 2023. A stock split typically aims to increase the number of outstanding shares and reduce the trading price per share, making it more affordable and potentially more attractive to a broader investor base.
The exact record date for the stock split will be set post-shareholder approval and will be duly announced to the stakeholders. Senco Gold aims to complete the stock split process within three months from obtaining shareholder consent, as per the latest exchange filings.
Details and Timeline of the QIP
Alongside the stock split, Senco Gold's board has also approved a proposal to raise funds up to Rs 500 crore via Qualified Institutional Placement (QIP). This initiative could involve other permissible fundraising methods and is scheduled for launch by the end of the current financial year.
QIPs are a tool used by publicly listed companies to sell shares, debentures, or any securities, other than warrants that are convertible to equity, to qualified institutional buyers.
About Senco Gold
Dominating the jewellery retail market in Eastern India, Senco Gold boasts the largest number of stores in the region. The company offers a diverse range of products, including gold, diamond, silver, and platinum jewellery, along with costume pieces, coins, and utensils.
Demonstrating robust financial health, Senco Gold reported net sales of Rs 1,403.89 crore in the June quarter of 2024, up by 7.5% from the previous year, and a net profit of Rs 51.27 crore, up 85% from the year-ago quarter.
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