Senco Gold Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Senco Gold Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.
IPO Snapshot
Key metrics and details at a glance.
Price Band
₹317
Per ShareLot Size
47 Shares
Minimum Investment
₹14,899
Issue Size
₹405 Cr
Face Value
₹10
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Senco Gold Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
74.71%
Issue Type
Book Building
ISIN
INE602W01027
About the Company
Senco Gold Limited is the largest organised jewellery retail player in the eastern region of India based on number of stores and among eastern India based jewellery retailers, the company has the widest geographical footprint in non-eastern states. The company primarily sells gold and diamond jewellery and also sell jewellery made of silver, platinum and precious and semi-precious stones and other metals. Its products are sold under the "Senco Gold & Diamonds" tradename, through multiple channels, including Showrooms and online platforms.
Industry Overview
The domestic gems and jewellery market was roughly ~Rs 4,700 billion in fiscal 2023 with gold jewellery dominating the overall market with a 66% share. Domestic jewellery demand has historically been dominated by consumption. Consumption of jewellery studded with diamond, pearls and other precious and semi-precious stones, has also been rising over the past five years but remains significantly lower than that of gold jewellery. Growing demand for studded jewellery could be attributed to changing consumer preferences, a rising presence of organised players and aggressive advertising campaigns.
Company History
Senco Gold Limited was originally incorporated as Senco Gold Private Limited at Kolkata, West Bengal, India, as a private limited company under the Companies Act, 1956, pursuant to a certificate of incorporation dated August 22, 1994, issued by Registrar of Companies, West Bengal ("RoC"). Subsequently, pursuant to a resolution passed at the meeting of the Board of Directors held on June 27, 2007 and a special resolution of the shareholders of the Company at the EGM held on August 8, 2007, the name of the Company was changed to Senco Gold Limited, pursuant to its conversion into a public limited company. A fresh certificate of incorporation dated August 31, 2007, consequent to the change of name, was issued by the RoC.
Products & Services
- Senco Gold Limited sells gold and diamond jewellery and also sells jewellery made of silver, platinum and precious and semi-precious stones and other metals.
Growth Strategy
- Experienced management team and institutional investor support.
- Focus on increasing the overall operating margins by adapting optimal product mix
- Continue to invest in its marketing and brand building initiatives through hyperlocal strategy.
- Focus on catering to the younger generation and the upwardly mobile in India.
- Leverage technology to enhance operational efficiency, customer experience and delight.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a consolidated basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offer of 12,776,025* equity shares of face value of Rs. 10 each ("Equity Shares") of Senco Gold Limited ("Company" or "Issuer") for cash at a price of Rs. 317 per equity share (including a share premium of Rs. 307 per equity share) ("Offer Price") aggregating to Rs. 405.00 crores* ("Offer") comprising a fresh issue of 8,517,350* equity shares aggregating to Rs. 270.00 crores by the company (the "Fresh Issue") and an offer for sale of 4,258,675* equity shares by Saif Partners India iv Limited (the "Selling Shareholder") aggregating to Rs. 135.00 crores* ("Offer for Sale" and such equity shares, the "Offered Shares"). The offer shall constitute 16.45%* of the post-offer paid-up equity share capital of the company. The face value of the equity shares is Rs. 10 each. the offer price is 31.70 times the face value of the equity shares. *Subject to finalization of the basis of allotment Bids can be made for a minimum of 47 equity shares and in multiples of 47 equity shares thereafter.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- The Company has a strong brand name with heritage / legacy of over five decades;
- Largest organised jewellery retail player in the eastern region of India based on number of stores.
- Strong `Company Operated Showroom' base;
- Established asset-light `franchise' model leading to operating leverage;
- Calibrated focus on light, affordable jewellery with the intention to cater to the upwardly mobile and younger generation;
- The company face significant competition in the Indian jewellery market, its risk losing substantial portion of the company customers and its market share which will adversely affect its business, financial condition, results of operations and prospects.
- The Company requires significant amounts of working capital for continued growth. Its inability to meet the company working capital requirements, on commercially acceptable terms, may have an adverse impact on its business, financial condition and results of operations.
- The company obtain gold on loan basis, which remains subject to RBI regulations. Any adverse change in the regulations governing gold on loan basis may adversely affect its financial condition and results of operations.
- A significant portion of the company manufacturing work is done by Karigars who do not work exclusively for it which exposes it to any risks/adverse developments affecting the Karigars.
- The company has been subject to a 'Search and Seizure' operation by the income-tax department in the past, which has resulted in taxation and criminal proceedings being initiated against the Company and its Individual Promoter. The company has also been subject to an on spot search from the Directorate General of Central Excise Intelligence, Kolkata along with show cause notice. Further, a search has been conducted by the customs department at its Registered and Corporate Office in relation to an investigation against one of its Job Worker and vendor and a spot summons was issued to the Company. Any adverse outcome of such proceedings might have an adverse effect on its business, financial condition and results of operations.