Senco Gold files Rs 525-cr IPO papers with Sebi

Jewellery retailer Senco Gold Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 525 crore through an initial public offering (IPO).

The IPO comprises fresh issue of equity shares aggregating up to Rs 325 crore and an offer for sale (OFS) of equity shares to the tune of Rs 200 crore by selling shareholder – SAIF Partners India IV Limited.

Besides, the company may consider a pre-IPO placement of equity shares aggregating up to Rs 65 crore. If such placement is undertaken, the fresh issue size will be reduced.

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.

At present, Senco Gold has 127 showrooms — 70 company-operated and 57 franchisee — 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.

The company also sells products through various online platforms. It also undertakes wholesale exports of its jewellery primarily to Dubai, Malaysia and Singapore.

Its revenue from operations grew at a CAGR of 9.92 per cent from Rs 2,420 crore as of March 31, 2020 to Rs 2,660 crore as of March 31 2021.

The company has 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 lakh equity shares for an aggregate consideration of Rs 75 crore.

IIFL Securities, Ambit and SBI Capital Markets are the book running lead managers to the IPO. The equity shares of the company are proposed to be listed on BSE and NSE.