The Senco Gold scrip made a rebound on the bourses on Tuesday after hitting a fresh 52-week low on Monday, following a cue from the promoter group, which picked up shares in the company through a creeping acquisition route.
In a notice to the bourses, the retail jewellery chain said that Jai Hanuman Shri Siddhivinayak Trust, a promoter group entity, had picked up 1.6 lakh shares in the company, sending the script to its 5 per cent upper circuit.
The token acquisition was carried out on Monday when Senco scrip had touched a 52-week low of ₹227.7 a share on the Bombay Stock Exchange, way below the IPO price of ₹317. After the regulatory announcement hit the market, Senco shares soared to ₹249.3, up ₹11.85 apiece from the previous close.
Investors usually react favourably to share purchases by promoters. They take it as a vote of confidence from the owners, signalling that the stock is nearing the bottom. After hitting a high of ₹772 on October 7, Senco has been on a steady downbeat as soaring gold prices weighed on jewellery demand.
“The markets and investors have been a little jittery and uncertain with all the things that have been happening around the world. But fundamentally I do not see any major changes happening,” Suvankar Sen, MD and CEO, Senco Gold Ltd, told CNBC TV18 on Tuesday.
“We feel the value is there and the business continues to remain strong,” he said on the promoter group picking up shares.
Despite the all-time high gold prices, Sen said that demand for gold jewellery from the wedding market remains robust.
