Senco Gold IPO ends with robust subscription

Published on Jul 07, 2023 10:15

The Qualified Institutional Buyers (QIBs) category was subscribed 180.94 times. The Non Institutional Investors (NIIs) category was subscribed 64.99 times. The Retail Individual Investors (RIIs) category was subscribed 15.46 times.

The initial public offer (IPO) of Senco Gold received bids for 69,08,62,400 shares as against 94,18,603 shares on offer. The issue was subscribed 73.35 times.

The issue opened for bidding on Tuesday (4 July 2023) and it closed on Thursday (6 July 2023). The price band of the IPO is fixed at Rs 301-317 per share. An investor can bid for a minimum of 47 equity shares and in multiples thereof.

The IPO comprised fresh issue of equity shares worth up to Rs 270 crore and an offer for sale of Rs 135 crore by existing shareholder SAIF Partners India IV.

The objectives for the fresh issue include Rs 196 crore for funding working capital requirements and balance amount for general corporate purposes.

Promoters and promoter group hold an aggregate of 53,183,712 equity shares, aggregating to 76.92% of the pre-offer issued and paid-up equity share capital. The post IPO shareholding for the same is expected to be around 68.48%.

Senco Gold is a pan-India jewellery retail player with a history of more than five decades. The company is the largest organized jewellery retail player in the eastern region of India based on number of stores. Among eastern India based jewellery retailers, it has the widest geographical footprint in non-eastern states.

The company primarily sells gold and diamond jewellery. It also sells jewellery made of silver, platinum, precious, and semi-precious stones and other metals. As on 31 March 2023, the company had 136 showrooms which have a total area of approximately 409,882 sq. ft. It includes 70 company-operated showrooms and 61 franchisee showrooms spread across 99 cities and towns over 13 states across India.

The company reported a net profit of Rs 158.48 crore and net sales of Rs 4,077.40 crore for the twelve months ended on 31 March 2023.