Kolkata: Senco Gold Limited, a pan-India jewellery retail player with legacy of over five decades and 2nd 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 of 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 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 number of stores. Also among eastern India based jewellery retailers, it has the widest geographical footprint in non-eastern states.
The company primarily sells gold and diamond jewellery and also sells jewellery made of silver, platinum and precious and semi-precious stones and other metals. The other offerings of the company also include costume jewellery, gold and silver coins and utensils made of silver. With a catalogue offering more than 108,000 designs for gold jewellery and more than 46,000 designs for diamond jewellery, Senco Gold 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 or Karigars in Kolkata and across the country. It has a manufacturing facility located at the Gems and Jewellery Park, Ankurhati in Howrah, West Bengal.
Senco Gold currently has 127 showrooms (70 Company Operated Showrooms and 57 Franchisee Showrooms) with a total area of approximately 393,342 sq. ft., 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 focuses on attaining an optimal balance between its owned Showrooms and expanding its asset-light franchisee model. It endeavours to register presence in the state capital or the largest city in the state through Company Operated Showrooms before venturing into tier-II and tier-III locations in such state, primarily through franchisee showrooms in order to leverage logistical efficiency of inventory and return on capital.
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 revenue from operations was Rs. 2467 crore for the eight months ended November 30, 2021 on a consolidated basis while profit in this period crossed Rs. 100 crore mark.
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.
