Senco Gold may consider pre-IPO placement of equity shares up to Rs 65 crore
Jewelery retailer Senco Gold Ltd has filed preliminary papers with capital markets regulator SEBI to raise Rs 525 crore through an initial public offering (IPO).
- PTI
- Last Update:April 17, 2022, 12:46 pm IST
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Jewelery retailer Senco Gold Ltd has filed preliminary papers with capital markets regulator SEBI to raise Rs 525 crore through an initial public offering (IPO). The IPO consists of fresh issue of equity shares of up to Rs 325 crore and an Offer for Sale (OFS) of equity shares worth Rs 200 crore by selling to the shareholder – SAIF Partners India IV Limited.
In addition, the company may consider pre-IPO placement of equity shares up to Rs 65 crore. If such placement is done, the size of the new issue will be reduced. The company proposes to utilize Rs 240 crore of the net proceeds from the fresh issue for financing working capital requirements and the rest for general corporate purposes. Presently, Senco Gold has 127 showrooms – 70 company operated and 57 franchisees – in 89 cities and towns across 13 states in India. Some of its franchised showrooms are located in metros and areas other than Tier-I, providing greater reach in Tier-2 and Tier-3 locations.
The company also sells products through various online platforms. It also exports the bulk of its jewelery mainly to Dubai, Malaysia and Singapore. Its revenue from operations grew at a CAGR of 9.92 per cent from Rs 2,420 crore as on March 31, 2020 to Rs 2,660 crore as on March 31, 2021. The company has recently entered into a share membership with Oman India Joint Investment Fund Trustee Company Pvt. Ltd., Trustee of Oman India Joint Investment Fund II for the issue and subscription of 26.63 lakh equity shares for a total consideration of Rs 75 crore.
IIFL Securities, Ambit and SBI Capital Markets are the book running lead managers of the IPO. The equity shares of the company are proposed to be listed on BSE and NSE.
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