 "This jewellery share hits record high as board okays stock split, fundraise")
Senco Gold share zoomed 10 per cent on Monday, October 7, and clocked an all-time high of Rs 1,544 per share on the BSE in the intraday trade. Senco Gold share price surged today after the company's board approved a stock split and a fundraising plan in a meeting after market hours on Friday.
At around 9:24 AM, shares of Senco Gold were up 8.83 per cent or Rs 124.05 at Rs 1,528.5 per share. By comparison, the BSE Sensex traded 0.27 per cent higher at 81,906.34 around the same time.
On October 4, Senco Gold's board gave a nod to raise Rs 500 crore through qualified institutional placement (QIP).
"This is to inform you that the Board of Directors of the company at their meeting held on October 4, 2024, considered and approved the raising of funds by way of issuance of Equity Shares, and/ or securities convertible into Equity Shares at the option of the Company, for an aggregate amount not exceeding Rs 500 crore by way of Qualified Institutional Placement (QIP)," the company's stock exchange filing read.
Further, the board also approved a stock split in the ratio of 1:2. As per the filing, every 1 existing share, having a face value of Rs 10 each, will be split into 2 shares, having a face value of Rs 5 each.
The stock split aims at improving the liquidity of shares of Senco Gold in the capital markets by widening the shareholder base and making it more affordable for retail investors. The whole transaction will be completed within three months, the company said.
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Meanwhile, in a report dated September 17, Emkay Global reiterated its 'Buy' rating on Senco Gold for a target price of Rs 1,600. The brokerage sees a significant re-rating scope for Senco Gold, helped by a strong pick-up in Q2.
"Our checks suggest a strong pick-up in jewellery retail after a modest Q1, as intermediate cooling of gold prices rushed consumers to stores. In our view, Senco is now comfortably placed to meet or exceed its 18-20 per cent annual growth guidance, despite only 11 per cent growth in Q1," the report read.
In the past one year, Senco Gold shares have gained 117.6 per cent against Sensex's rise of 24 per cent.