Senco Gold Limited aims to raise Rs 405 crore through IPO opening on July 4

The IPO proceeds will be used to expand the company’s presence in north India and to expand its diamond jewellery business

Leading jewellery retail company Senco Gold Limited proposes to raise up to Rs 405 crore through an initial public offering (IPO) of equity shares of face value of Rs 10 each. The offer, opening on July 4, 2023 and closing on July 6, 2023, comprises a fresh issue of equity shares aggregating up to Rs 270 crore and an offer for sale by shareholder SAIF Partners India of equity shares aggregating up to Rs 135 crore.

The price band of the offer has been fixed at Rs 301 to Rs 317 per equity share. Bids can be made for a minimum of 47 equity shares and in multiples of 47 equity shares thereafter.

The Company proposes to utilize the net proceeds of the fresh issue towards funding working capital requirement of the company which is estimated to be Rs 196 crore, and the balance amount towards general corporate purposes. The working capital requirements include expanding the company’s presence in north India, and growing the high-margin diamond jewellery business.

The equity shares are being offered through the red herring prospectus of the company dated June 27, 2023 filed with the Registrar of Companies, West Bengal at Kolkata and are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited. Senco Gold and Diamonds had attempted IPOs in 2018 and 2022, but failed to raise funds. This is the third attempt by the company to get itself listed.

Senco Gold & Diamonds, headquartered in Kolkata, now operates 136 showrooms, which have a total area of approximately 409,882 sq. ft., in 96 cities and towns over 13 States across India. In FY22-23, the company reported a revenue of Rs 4,075.56 crore and a profit after tax of Rs 160.91 crore. This is a jump of 15% over the previous year’s profits, showing good financial performance. Senco’s strategy of operating through multiple channels enables it to allocate capital as required, as it continues to expand geographic presence and work towards an omni channel network.

Retail Jeweller India News