- The company aims to utilise the funds for working capital requirements and general corporate purposes
- Senco was the first qualified jeweller from East India to import gold on India International Bullion Exchange, post ICEGATE integration, in GIFT City, Gandhinagar
- The three-day issue will close on July 6, and the bidding for anchor investors will open on July 3
- Bids can be made for a minimum of 47 Equity Shares and in multiples of 47 Equity Shares thereafter
NE BUSINESS BUREAU
AHMEDABAD, JULY 1
Senco Gold Limited, one of the leading jewellers, plans to raise ₹405 crore through an initial public offering which opens for subscription on July 4, a senior official of the company announced here on Saturday.
The IPO consists of fresh equity issuance of ₹270 crore and an offer for sale by SAIF Partners India IV of ₹ 135 crore. The anchor investor bidding period is on Monday and the offer closes on July 6.
The price band of the offer has been fixed at ₹ 301 to ₹ 317 an equity share. Bids can be made for a minimum of 47 equity shares and in multiples of 47 equity shares thereafter.
Speaking with navjeevanexpress.com, Suvankar Sen, MD & CEO, Senco Gold said, “Senco is well-positioned for an expansion of its showroom network as well as building its digital presence. With a national footprint of 136 showrooms across the country, our vision is to bring the best of designs from every region of the country and create jewellery pieces that are widely appreciated by the customers across the spectrum. We believe our more than five decade track-record evokes consumers trust in our products and as we embark on our next phase of growth, our objective is to connect with millennials and the Gen Z alike.”
He added, over the years, Senco has appointed Kiara Advani, Vidya Balan, Olympian Dutee Chand, actress Jaya Ahsan, former Indian men’s cricket team captain Sourav Ganguly, as brand ambassadors and in FY 2022 the company spent more than Rs 30 crore on advertising and sales promotion.
Senco was the first qualified jeweller from East India to import gold on India International Bullion Exchange, post ICEGATE integration, in GIFT City, Gandhinagar.
Senco Gold & Diamonds, which was notified as a Qualified Jeweller (QJ) by the IFSCA (International Financial Services Centres Authority) in March 2023, is permitted to purchase Bullion Depository Receipt (BDR) on IIBX for import of gold and completed its first trade successfully where the BDR got settled within 30 minutes. The jeweller imported 21 kg of gold in its debut transaction on the IIBX.
The company proposes to use the net proceeds of the fresh equity issue towards funding the working capital requirement of ₹196 crore and the balance towards general corporate purposes.
The shares will be listed on BSE and NSE.
IIFL Securities, Ambit and SBI Capital Markets are the Book Running Lead Managers to the offer.
Senco’s fund-based working capital facilities have been assigned a rating of “ICRA A” with a stable outlook for long-term facilities by ICRA.
As of March-end, Senco has 136 showrooms with a total area of about 4.10 lakh sq ft in 96 cities and towns across 13 states. It has 75 Company Operated Showrooms and 61 Franchisee Showrooms as of March-end. Some of its Franchisee Showrooms are located in areas other than metros and tier-I, providing greater reach in tier-II locations.
The company primarily sells gold and diamond jewellery and jewellery made of silver, platinum and precious and semi-precious stones and other metals. It offers a diverse jewellery collection in a price range from about ₹2,000 to ₹5 lakh to maximise the customer base.
