Senco Gold IPO to open on July 4; check price band, lot size and other details

The initial public offering (IPO) of Senco Gold will kick off for subscription on Tuesday, July 4, 2023. The company will sell its shares in the range of Rs 301-317 apiece with a lot size of 47 equity shares. The three-day stake sale will conclude for subscription on Thursday, July 6.

The company is eyeing to raise Rs 405 crore from its primary stake sale, which includes issuance of fresh equity shares worth Rs 270 crore, while existing SAIF Partners India IV will offload shares worth Rs 135 crore via offer for sale (OFS) route.

Incorporated in 1994, Senco Gold is a pan-India jewelry retailer, which sells its products under its brand name 'Senco Gold & Diamonds' through its 136 showrooms across 96 cities and towns in the country. It is the largest organized jewelry retailer in eastern India in terms of number of stores.

The net proceeds from the issue shall be utilised towards funding working capital requirements of the company, and general corporate purposes. However, the proceeds from OFS will go to the selling shareholder of the issue.

Senco Gold majorly sells gold and diamond jewelry along with jewelry made of silver, platinum, precious and semi-precious stones, and other metals. It also offers costume jewelry, gold, and silver coins, and utensils made of silver. The company manufactures machine-made lightweight gold and diamonds jewelry and source jewelry from third-party vendors too.

For the financial year ended on March 31, 2023, the company reported a net profit at Rs 158.48 crore, compared to Rs 129.10 crore in the year ended on March 31, 2022, while its total revenue stood at Rs 4,108.54 crore in FY23, which was Rs 3,547.41 crore in the previous financial year.

The company has reserved 50 per cent of the equity shares for qualified institutional bidders (QIBs), while non-institutional investors (NIIs) will get 15 per cent of the allocation. Remaining 35 per cent of the equity shares will be allocated to the retail investors.

IIFL Securities, Ambit Capital and SBI Capital Markets are book-running lead managers to the issue, while Kfin Technologies has been appointed as the registrar to the issue. Shares of the company will be listed on both BSE and NSE, with July 14 as the tentative date of listing.