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Kolkata : Senco Gold Limited, a renowned pan-India jewellery retail player, has revealed plans to launch its initial public offering (IPO) of equity shares on Tuesday, July 04, 2023. The IPO, which aims to raise up to ₹ 4,050 million, includes a fresh issue of equity shares totaling ₹ 2,700 million and an offer for sale by SAIF Partners India IV Limited worth ₹ 1,350 million. The anchor investor bidding period commenced on Monday, July 03, 2023, and the IPO will close on Thursday, July 06, 2023.

The price band for the IPO has been fixed at ₹ 301 to ₹ 317 per equity share. Interested investors can place bids for a minimum of 47 equity shares, with subsequent bids to be made in multiples of 47 equity shares.

The funds raised from the IPO will primarily be utilized for the company’s working capital requirements, estimated at ₹ 1,960 million, with the remaining amount allocated for general corporate purposes.

Senco Gold Limited’s equity shares will be offered through the red herring prospectus filed with the Registrar of Companies, West Bengal, and are intended to be listed on BSE Limited and the National Stock Exchange of India Limited.

The IPO follows the rules and regulations set forth by the Securities Contracts (Regulation) Rules, 1957, and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. The book-building process will be employed, with up to 50% of the IPO allocated on a proportionate basis to Qualified Institutional Buyers (QIBs). Additionally, up to 60% of the QIB portion may be allocated to Anchor Investors at the discretion of the company and SAIF Partners India IV Limited. In the event of under-subscription or non-allocation in the Anchor Investor Portion, the remaining equity shares will be added to the Net QIB Portion.

Non-Institutional Bidders will have access to at least 15% of the IPO, with one-third of that portion reserved for applicants with an application size of more than two lakh rupees and up to ten lakh rupees. The remaining two-thirds will be reserved for applicants with an application size exceeding ten lakh rupees. The Retail Individual Bidders will be allocated at least 35% of the IPO.

All prospective bidders, excluding Anchor Investors, are required to use the Application Supported by Blocked Amount (ASBA) process, providing their respective ASBA accounts or UPI IDs for the corresponding bid amounts. IIFL Securities Limited, Ambit Private Limited, and SBI Capital Markets Limited will serve as the Book Running Lead Managers (BRLMs) for the IPO.

Senco Gold Limited boasts a rich heritage of over five decades in the jewellery retail industry and is recognized as the largest organized jewellery retail player in the eastern region of India. The company’s extensive network comprises 136 showrooms spread across 96 cities and towns in 13 states. Senco Gold Limited’s diverse product range includes gold, diamond, platinum, and studded jewellery, catering to various price points. The company’s franchise model facilitates rapid expansion while maintaining an asset-light growth strategy.

With consistent revenue growth, profitability, and return on equity from FY21 to FY23, Senco Gold Limited has established itself as a trusted and respected jewellery brand. The company’s products are sold under the tradename “Senco Gold & Diamonds” through multiple channels, including company-operated showrooms, franchisee showrooms, and online platforms.

Senco Gold Limited’s IPO presents an opportunity for investors to participate in the company’s success story and capitalize on its promising future in the jewellery retail sector.