Senco Gold Limited has established a price range of Rs 301-317 per share for its Rs 405 crore initial public offering (IPO), which will be available for subscription from July 4 to July 6.
The allotment of shares for Senco Gold is scheduled for July 11, with share credits expected on July 13. The company's shares will be listed on exchanges starting July 14, and its valuation at the upper price band stands at Rs 2,460 crore. The IPO consists of a fresh issue of equity shares of Rs 270 crore and an offer-for-sale of up to Rs 135 crore by SAIF Partners India IV Limited, with the promoters holding a 19.23% stake.
The proceeds from the fresh issue, amounting to Rs 196 crore, will be utilized for working capital requirements, leveraging the company's existing working capital sanction limit of Rs 2,073 crore as of March 2023.
In a press conference on Friday, Suvankar Sen, MD, CEO, Senco Gold shared the goal of Senco gold by saying, “Senco gold and diamond has an average ticket size of only Rs 60-70,000 which is about eight, nine grams. Thus, we aim to provide luxury jewellery, but in a way which is affordable for Indian consumers.”
In its endeavour to cater to a wide customer base, Senco Gold and Diamonds presents an extensive and diverse collection of jewellery. From gold and diamond to platinum and studded jewellery, the brand offers an array of exquisite pieces across various price points. This strategic approach aims to ensure that customers with diverse preferences and budgets can find their perfect piece of adornment.
Sen went on to highlight five reasons why the public should invest in Senco gold.
Consistent and strong growth over the years:
30x growth in revenue from INR 134 Cr (FY08) to INR 4,077 Cr (FY23)
Pan India Presence with Eastern India Dominance
Presence in 13 Indian states and across 96 cities
Backed by Reputed PE Funds
Raised INR 800 Million equity-SAIF Partners (2014)
Raised INR 750 Million - OUJIF II (April 2022)
Robust Omni Channel Platform
Network of 136 showrooms(2) including 61 franchise showrooms
Website & MySenco app
E-commerce marketplaces
Video calling and tele calling facility
Consistently in the League of Most Trusted Jewellery Brand
Best Brand in Jewellery - the Economic Times, 2021 and KALEIDO award by ET Brand Certified as Great Place to Work® by the Great Place to Work®, Institute, India.
Senco currently operates 136 showrooms spread across 96 cities and towns in over 13 states throughout India, covering a total area of approximately 4,09,882 sq. ft. These showrooms include franchisee locations situated in non-metro and tier-II areas, enabling the company to expand its presence and reach a wider customer base beyond metropolitan and tier-I cities.
During the financial year 2022-2023, Senco Gold experienced a substantial increase in revenue, reaching Rs 4,077.40 crore, compared to the previous year's revenue of Rs 3,534.64 crore. Additionally, Senco Gold's net profit for the fiscal year amounted to Rs 158.48 crore, compared to the previous year's net profit of Rs 129.10 crore.
Over the past three years, the company has demonstrated consistent growth in both revenue and profitability, along with a favourable Return on Equity (RoE). With a compound annual growth rate (CAGR) of 19% for the topline and 20% for the bottomline, the company has maintained a positive trajectory in its financial performance.
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