Senco Gold Ltd is looking to utilise a portion of proceeds from the ₹405 crore initial public offering (IPO) towards ramping up its footprint by opening new stores, primarily in the eastern and northern parts of the country.
The company’s IPO comprises of fresh issue of equity shares aggregating to ₹270 crore and an offer for sale by SAIF Partners India IV Ltd aggregating to ₹135 crore. The IPO will open for subscription on July 4 and will close on July 6. The anchor investor bidding period is July 3.
According to Suvankar Sen, MD & CEO, the company currently opens about five-to-six stores in a year. It will look to ramp up its presence by opening close to 13 company-owned stores in the next 12-18 months. Apart from this, the company will also open stores through franchisee network. As on March 31, 2023, Senco had 136 showrooms in 96 cities and towns spread across 13 States. While the majority of the company-owned stores would come up in urban centres, the ones owned by franchisee would come up in Tier II, Tier III towns and cities following the hub and spoke model.
Also read: Senco Gold raises nearly ₹122 crore from anchor investors
“North and east are our focus markets, we already have presence in these markets and we want to further strengthen it,” Sen told newspersons on the sidelines of a press conference to announce the IPO here on Monday.
A CRISIL Report suggests that the company is the largest organised jewellery retail player in the eastern region based on the number of stores and among eastern India-based jewellery retailers and also has the widest geographical footprint in non-eastern States.
IPO
The price band of the offer has been fixed from ₹301 – 317 per equity share. Bids can be made for a minimum of 47 equity shares and in multiples thereafter.
The company proposes to utilise the net proceeds of the fresh issue (₹270 crore) towards funding the working capital requirement, which is estimated to be close to ₹196 crore and balance amount towards general corporate purposes.
Also read: IPO screener: Senco Gold issue opens today
Its revenue from operations grew at a CAGR of about 24 per cent from ₹2,660 crore as of March 31, 2021, to ₹4,077 crore as of March 31, 2023.
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.