Bengal’s Renowned Jewellery Brand Senco Gold Joins IPO Bandwagon

Bengal’s renowned Jewellery Chain Senco Gold Limited opens subscription for an initial public offering of equity shares of face value of ₹ 10 each aggregating up to ₹ 4,050 million today, July 04, 2023. The initial public offering comprises a fresh issue of equity shares aggregating up to ₹ 2,700 million and an offer for sale by SAIF Partners India IV Limited of equity shares aggregating up to ₹ 1,350 million. The anchor investor bidding period was Monday, July 03, 2023. The Offer will close on Thursday, July 06, 2023.

The Price Band of the Offer has been fixed from ₹ 301 to ₹ 317 per equity share. Bids can be made for a minimum of 47 equity shares and in multiples of 47 equity shares thereafter.
The Company proposes to utilize the net proceeds of the Fresh Issue towards funding working capital requirement of the Company which is estimated to be ₹ 1,960 million and balance amount towards general corporate purposes. For the purposes of the Offer, the NSE is the Designated Stock Exchange.

As on March 31, 2023, Senco has 136 showrooms, which have a total area of approximately 409,882 sq. ft., in 96 cities and towns over 13 states across India. Some of its Franchisee Showrooms are located in areas other than metros and tier-I, providing it greater reach in tier-II locations. Senco’s established ‘franchise’ model continues to promote asset-light growth for the company, while reducing the capital expenditure (capex) requirement and enabling faster expansion.

The Company primarily sells gold and diamond jewellery and also sell jewellery made of silver, platinum and precious and semi-precious stones and other metals. It offers a diverse jewellery collection, which includes gold jewellery, diamond jewellery, platinum jewellery and studded jewellery of various forms, across various price points (ranging from approximately ₹ 2,000 to approximately ₹ 500,000) to maximise the customer base.

Senco has posted consistent revenue growth, profitability and return on equity from FY21 to FY23. Its other offerings also include costume jewellery, gold and silver coins and utensils made of silver. Its products are sold under the “Senco Gold & Diamonds” tradename, through multiple channels, including the 75 Company Operated Showrooms and 61 Franchisee Showrooms (as on March 31, 2023) (including four franchisee owned and Company operated Showrooms) and various online platforms, including the website

Senco’s strategy of operating through multiple channels enables it to allocate capital as required, as it continues to expand geographic presence and work towards an omni channel network. With a catalogue offering more than 120,000 designs for gold jewellery and more than 69,000 designs for diamond jewellery, it offers a large variety of designs of handcrafted jewellery, most of which are designed and manufactured in-house by its designers in close collaboration with skilled local craftsmen (generally termed Karigars) in Kolkata and across the country. Machine made light weight jewellery in gold and diamonds are also manufactured at its manufacturing facility based on designs prepared by its inhouse designers and also sourced from third partner manufacturing vendors.

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