Senco Gold sets price band at Rs 301-317 for Rs 405-crore IPO

IPO

Eastern India's leading jewellery retail chain Senco Gold Ltd has set the price band at Rs 301-317 a share for its Rs 405-crore initial public offering. The issue will open for subscription on July 4 and close on July 6. The anchor investor bidding will take place on July 3.

The allotment of shares has been scheduled for July 11, while credit of shares will be on July 13. The shares will be listed on exchanges on July 14. On the upper price band, the firm is valued at Rs 2,460 crore.

The issue consists of a fresh issue of Rs 270-crore and an offer-for-sale of up to Rs 135 crore by its promoter SAIF Partners India IV Ltd. SAIF Partners has 19.23 percent stake in the firm.

The proceeds from the fresh issue worth Rs 196 crore will be used for funding working capital requirements of the firm. As of March 2023, the company has a total working capital sanction limit to Rs 2,073 crore.

IIFL Securities, Ambit Pvt Ltd and SBI Capital Markets Ltd are the lead managers to the issue.

Senco Gold & Diamonds holds the position of the largest organized jewelry 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's main focus is on selling gold and diamond jewelry, although it also offers a wide range of jewelry crafted from silver, platinum, precious and semi-precious stones, and various other metals. All of these products are marketed under the trade name Senco Gold & Diamonds.

The company runs 136 showrooms across 96 cities and towns in 13 states throughout India. These showrooms collectively cover an expansive area of approximately 409,882 square feet.

For FY23, Senco reported 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.