Senco Gold’s ₹405 cr IPO to open on July 4; sets price band at ₹301-₹317

Jewellery retailer Senco Gold has filed a final prospectus with capital market regulator SEBI to launch an initial public offering (IPO). This is the second attempt by the Kolkata-based company to raise ₹405 crore by public listing of shares on the domestic bourses. The company had first filed papers with SEBI for ₹600 crore IPO in 2018, but it withdrew the fundraising plan due to undisclosed reasons.

The IPO of Senco Gold, a key player in eastern India, will open for public subscription on July 4, 2023. The three-day issue will close on July 6, and the bidding for anchor investors will open on July 3, according to the red herring prospectus (RHP). The shares of the company are expected to be listed on the BSE and NSE on July 14.

The IPO comprises a fresh issue of equity shares aggregating up to ₹270 crore and an offer for sale (OFS) of equity shares up to ₹135 crore by a shareholder, SAIF Partners India IV Limited. The company has set the price band at ₹301-₹317 per share with a lot size of 47 equity shares.

The company intends to utilise ₹196 crore of net proceeds from the fresh issue towards funding working capital requirements and the rest towards general corporate purposes. 

According to a CRISIL Report, Senco Gold, which operates under the tradename ‘Senco Gold & Diamonds, is the largest organised jewellery retail player in the eastern region of India based on the number of stores. Also among eastern India-based jewellery retailers, it has the widest geographical footprint in non-eastern states.

The company primarily sells gold and diamond jewellery and also sells jewellery made of silver, platinum, and precious and semi-precious stones and other metals. The other offerings of the company also include costume jewellery, gold and silver coins and utensils made of silver. The company generates nearly 85% of its revenues from gold jewellery, and about 10% from diamond jewellery.

For the financial year 2022-23, the company’s revenue from operations stood at ₹4,075.56 crore compared to ₹3,534.64 crore in the previous fiscal. Meanwhile, profit after tax was at ₹160.91 crore against ₹130.15 crore in FY22.

With a catalogue offering more than 120,000 designs for gold jewellery and more than 69,000 designs for diamond jewellery, Senco Gold offers a large variety of designs of handcrafted jewellery, most of which are designed and manufactured in-house by its designers in close collaboration with skilled local craftsmen in Kolkata and across the country. It has a manufacturing facility located at the Gems and Jewellery Park, Ankurhati in Howrah, West Bengal.

As of March 31, 2023, Senco Gold has 136 showrooms (75 company operated showrooms and 61 franchisee showrooms) with a total area of approximately 409,882 sq. ft., in 96 cities and towns across 13 states in India. The company also sells products through various online platforms, while it also undertakes wholesale exports of its jewellery primarily to Dubai, Malaysia and Singapore.

In May this year, Senco Gold became the first qualified jeweller from East India to import gold on India International Bullion Exchange (IIBX) post ICEGATE integration. India's first IIBX was launched in the GIFT city in July 2022 to act as the gateway for bullion imports into India, with an aim to channelise through the exchange, all the bullion imports for domestic consumption.