Senco Gold Limited, a pan-India jewellery retail player with a legacy of over five decades, and the second 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 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 the 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 the number of stores. Also, among eastern India-based jewellery retailers, it has the widest geographical footprint in non-eastern states.

Its revenue from operations grew at a CAGR of 9.92% from Rs 2420 crore, as of March 31, 2020, to Rs 2660 crore, as of March 31, 2021.

The company recently entered into a share subscription with Oman India Joint Investment Fund Trustee Company Private Limited, the trustee of Oman India Joint Investment Fund II, for the issue and subscription of 26,63,541 equity shares for an aggregate consideration of Rs 75 crore.

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.