The ₹405-crore initial public offering of Senco Gold opens for public subscription today. The IPO, which closes on July 6, comes out with a price band of ₹301-317. Investors can bid for a minimum of 47 equity shares.
issue details
The IPO comprises a fresh issue of equity shares aggregating up to ₹270 crore and an offer-for-sale (OFS) of equity shares worth ₹135 crore by shareholder, SAIF Partners India IV Ltd. At present, SAIF Partners has a 19.23 per cent stake in the jewellery retail chain.
While 50 per cent of the issue size is reserved for qualified institutional buyers (QIBs) and 15 per cent for HNIs (non-institutional investors), the rest 35 per cent is reserved for retail investors.
Also read: SEBI halves IPO listing cycle to 3 days
Anchor investors
As part of the IPO process, the jewellery retail player has allotted 38,32,807 equity shares to 21 anchor investors and raised close to ₹122 crore by deciding to allot shares at ₹317 a share. Of the QIB portion, 60 per cent is reserved for anchor investors. The anchor was a well-diversified book, with a focus on long-only investors. Key marquee investors include Nippon MF, White Oak, Jupiter asset management, Bandhan MF, 3P India Equity Fund (Fund owned by Prashant Jain - 1st IPO investment by the fund), Max Life Insurance, Sundaram MF, and Franklin Templeton MF. These funds have envisaged strong faith in the vision and the growth of the company, the company said in a statement.
IIFL Securities, Ambit Private, and SBI Capital Markets are the Book Running Lead Managers to the offer.
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.
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.
The equity shares are proposed to be listed on BSE and NSE.