Senco Gold Set to Launch Rs 400 Cr IPO

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Senco Gold IPO: The Company Set to Launch Rs 400 Cr IPO Exclusive Report

Kolkata-based jewellery company, Senco Gold, is preparing to launch an initial public offering (IPO) valued at Rs 400 crore, as confirmed by a reliable source familiar with the matter to Moneycontrol. The company plans to file the necessary documents with the Securities and Exchange Board of India (SEBI) for the third time in its pursuit of going public.

Senco Gold intends to list its stock on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Out of the total IPO size, Rs 265 crore will be allocated to a fresh issue, while the remaining Rs 135 crore is expected to be offered for sale (OFS), allowing the promoters to transparently reduce their shareholdings through the bidding platform.

The funds raised from the IPO will serve various purposes, including meeting working capital requirements, expanding the company’s footprint in northern India, and bolstering its diamond jewellery business, according to the undisclosed source.

The jewellery industry player generates approximately 85 percent of its revenue from gold jewellery sales and an additional 10 percent from high-margin diamond jewellery, stated the source who requested anonymity.

Senco Gold holds a dominant position in the Kolkata market and is one of the largest players in eastern India. Currently, the company operates 75 stores directly and 61 stores through franchisees, spanning 96 cities in 13 states and union territories.

This marks Senco Gold’s third attempt to raise capital through the IPO route. The company previously filed IPO papers in 2022 for Rs 525 crore and in 2018 for Rs 600 crore. However, it faced challenges in securing funding on those occasions, which prompted the decision to reduce the size of the offer this time.

Senco Gold primarily engages in the manufacturing and sale of jewellery crafted from gold, diamond, silver, platinum, and precious and semi-precious stones. Its products are marketed under the brand name “Senco Gold & Diamonds.”

While West Bengal contributes significantly to the company’s revenue, with 63 percent of its stores located in the state, efforts to establish stores outside Bengal and pursue a pan-India presence have reduced the concentration risk over the years, as explained by the undisclosed source.

In the fiscal year 2022-2023, Senco Gold achieved revenue from operations amounting to Rs 4,075.56 crore, surpassing the previous fiscal’s figure of Rs 3,534.64 crore. Additionally, the company’s profit after tax increased to Rs 160.91 crore from Rs 130.15 crore.

About Senco Gold:

Senco Gold Limited functions as a jewelry store, providing a wide range of gold and diamond jewelry options. Their offerings include earrings, necklaces, bangles, coins, bars, pendants, rings, bracelets, chains, and gold coins. Senco Gold primarily serves customers in India.

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