Senco Gold Limited files DRHP with SEBI for Rs. 525 crore IPO

Senco Gold Limited, a pan-India jewellery retail player with legacy of over five decades and 2nd most trusted jewellery brand as per the TRA’s Brand Trust Report 2020, has filed a draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise Rs. 525 crore through an initial public offering (IPO).

The Initial Public Offering of Senco Gold comprises of fresh issue of equity shares aggregating up to Rs. 325 crore and an offer for sale of equity shares aggregating up to Rs. 200 crore by selling shareholder – SAIF Partners India IV Limited.

The company proposes to utilise Rs. 240 crore of net proceeds from the fresh issue towards Funding working capital requirements and rest towards General Corporate purposes.

Besides, the company may consider a Pre-IPO Placement of equity shares aggregating up to Rs. 65 crore. If the Pre-IPO Placement is undertaken, the amount raised from the Pre-IPO Placement will be reduced from the Fresh Issue.

According to a CRISIL Report, Kolkata-headquartered Senco Gold Limited, which operates under the tradename ‘Senco Gold & Diamonds’, is the largest organized jewellery retail player in the eastern region of India based on number of stores. Also among eastern India based jewellery retailers, it has the widest geographical footprint in non-eastern states.

Senco Gold currently has 127 showrooms (70 Company Operated Showrooms and 57 Franchisee Showrooms) with a total area of approximately 393,342 sq. ft., 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. It also sells products through various online platforms, including its website www.sencogoldanddiamonds.com. The company also has a manufacturing facility located at the Gems and Jewellery Park, Ankurhati in Howrah, West Bengal.

The revenue from operations for the eight months ended November 30, 2021 on a consolidated basis was Rs. 2467 crore while profit in this period crossed Rs. 100 crore mark.

The Book Running Lead Managers to the offer are IIFL Securities Limited, Ambit Private Limited and SBI Capital Markets limited.

The equity shares are proposed to be listed on BSE and NSE.