Senco Gold IPO opens on July 4, aims to raise Rs 405 crore

Kolkata-based jewellery company Senco Gold has announced that its initial public offering (IPO) will open for subscription from July 4 to July 6. The IPO comes with a price band of Rs 301–Rs 317 per share. 

Senco Gold's IPO seeks to raise Rs 405 crore at a valuation of Rs 2,460 crore. The IPO consists of a fresh issue of Rs 270 crore along with an offer for sale (OFS) of up to Rs 135 crore from SAIF Partners India IV, a private equity firm. Retail investors can apply for up to 13 lots, with a minimum investment of Rs 14,899.

The company aims to use the net proceeds of Rs 196 crore for working capital and general corporate purposes. The share allotment is expected to be finalised on July 11, with a tentative listing date of July 14 on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).

Senco Gold has established a strong presence in the Indian market as a jewellery retailer, specialising in gold, diamonds, and various other types of jewellery. As of FY23, the company reported a net profit of Rs 158.48 crore and revenue of Rs 4,077.40 crore, showing a significant growth in revenue, reaching Rs 4,077 crore as of March 31, 2023, from Rs 2,660 crore as of March 31, 2021.

The company operates through a network of 136 showrooms across 96 cities, including Tier-2 and Tier-3 locations, solidifying its position as the largest organised jewellery retailer in eastern India. Apart from its brick-and-mortar stores, Senco Gold has also embraced the digital transformation by expanding its reach through online sales.

Senco Gold is not just a domestic player but also has an international presence. It engages in the wholesale export of jewellery to various global markets, including Dubai, Malaysia, and Singapore.

The IPO is being managed by IIFL Securities Ltd, Ambit Private Ltd, and SBI Capital Markets Ltd, who serve as the bookrunners and lead managers. For the IPO, KFin Technologies serves as the registrar. Investors can apply through various channels, including online platforms like Zerodha, Upstox, and Paytm Money.

This IPO presents an opportunity for investors looking to invest in gold without directly purchasing gold-based assets or physical gold.