The Rs 405 crore-initial share sale of jewellery retail player Senco Gold Ltd will open for public subscription on July 4. The initial share sale will conclude on July 6 and the bidding for anchor investors will open on July 3, according to the Red Herring Prospectus (RHP). Senco Gold has set the price band at Rs 301-317 a share for its Rs 405-crore initial public offering (IPO). The issue will open for subscription on July 4 and close on July 6. The anchor investor bidding will take place on July 3.
Senco Gold's IPO comprises of a fresh issue of equity shares aggregating up to Rs 270 crore and an offer-for-sale (OFS) of equity shares to the tune of Rs 135 crore by selling shareholder - SAIF Partners India IV Ltd. At present, SAIF Partners has 19.23 per cent stake in the jewellery retail chain. The company proposes to use Rs 196 crore of net proceeds from the fresh issue towards funding working capital requirements and the remaining for general corporate purposes.
Senco in For FY23 clocked a revenue of Rs 4,077.40 crore as against Rs 3,534.64 crore a year ago, while its net profit for the year stood at Rs 158.48 crore versus Rs 129.10 crore last year.
The Kolkata-based company has 127 showrooms, 70 company operated and 57 franchisee, in 89 cities and towns across 13 states in India. Some of its franchisee showrooms are located in areas other than metros and Tier-I, providing a greater reach in Tier-2 and Tier-3 locations. These showrooms collectively cover an expansive area of approximately 409,882 square feet.
IIFL Securities Ltd, Ambit Private Ltd and SBI Capital Markets Ltd are the book running lead managers to the issue. The equity shares are proposed to be listed on the BSE and NSE. In April 2022, the company had filed draft papers with Sebi for Rs 525 crore-IPO and received the regulator's go ahead to float the IPO in July last year.
Senco Gold & Diamonds holds the position of the largest organised jewellery retailer in the eastern India when considering the number of stores. Compared to other jewelry retailers in eastern India, it boasts the most extensive presence in non-eastern states. The company also sells products through various online platforms. It also undertakes wholesale exports of its jewellery, primarily to Dubai, Malaysia and Singapore.