Senco Gold Limited IPO
All that glitters is indeed gold in the Indian stock markets. The past week was filled with new highs for the Indian stock markets and the IPO market is also lighting up again. The latest IPO opportunity for investors is also a glittering one and is from the business of dealing in precious metals. Senco Gold Limited IPO, a company engaged in the business of selling gold and diamond jewelry and other precious metals is coming out with its IPO on 4th July 2023.
Senco Gold Limited IPO will open for subscription on 4th July 2023 and will close on 6th July 2023.
Here are all the important details of Senco Gold Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Senco Gold Limited are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 4th July 2023 |
| IPO Closing Date | 6th July 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of shares | Re. 10 per share |
| IPO Price Band | Rs. 301- Rs. 317 per share |
| IPO Size | Rs. 405 crores |
| Offer for Sale | Rs. 135 crores |
| Fresh Issue | Rs. 270 crores |
The important dates for Senco Gold Limited IPO are highlighted below:
| Event | Date |
| Opening date | 4th July 2023 |
| Closing Date | 6th July 2023 |
| Allotment date | 11th July 2023 |
| Refund Date | 12th July 2023 |
| Share Credit Date | 13th July 2023 |
| Listing Date | 14th July 2023 |
Investors can subscribe to Senco Gold Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,147 – 14,899 Maximum – Rs. 1,93,687 |
| Shares | Minimum – 47 Maximum – 611 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investors | 35% |
| QIB (Qualified Institutional Buyers) | 50% |
| NII (Non-Institutional Bidders) | 15% |
This IPO will be a combination of a fresh issue and an offer for sale. The proceeds from the issue will be utilised in the following manner.
Senco Gold Limited, established in 1994, is a renowned jewelry retailer operating across India. Under the brand name “Senco Gold & Diamonds,” the company offers a diverse range of jewelry, including gold, diamond, silver, platinum, precious and semi-precious stone, and other metal jewelry. Additionally, they provide costume jewelry, gold and silver coins, and silver utensils.
Senco Gold boasts an extensive catalog of more than 108,000 gold jewelry designs and over 46,000 diamond jewelry designs. The majority of these designs are handcrafted and manufactured in-house, collaborating with over 170 skilled local craftsmen in Kolkata and throughout the country. The company also produces machine-made lightweight jewelry in gold and diamonds and sources jewelry from external vendors. Their team of 20 designers works to create innovative and stylish jewelry pieces. With a widespread presence, Senco Gold operates over 136 showrooms spanning approximately 409,882 square feet. This includes 70 company-operated showrooms and 61 franchisee showrooms across 99 cities and towns in 13 states throughout India.
To cater to the younger generation and the upwardly mobile population of India, Senco Gold has introduced brands like Everlite (lightweight jewelry), Gossip (silver and fashion jewelry), and Aham collection (jewelry for men). These collections focus on smaller average ticket-size jewelry. For customers seeking premium designer or heavier jewelry, the company offers the D’Signia Showrooms and Vivaha collection, providing a more exclusive and premium retail experience.
Senco Gold Limited’s financials are given in the table below:
| Year | Total Assets (Rs. in cr) | Operating Revenue (Rs. in cr) | Profit after tax (Rs. in cr) | Basic EPS | Return on Net Worth |
| Mar-2023 | 2,905 | 4,077 | 158 | Rs. 22.93 | 18.96% |
| Mar-2022 | 2,100 | 3,534 | 129 | Rs. 19.42 | 19.42% |
| Mar-2021 | 1,559 | 2,660 | 61 | Rs. 9.25 | 9.25% |
(Source: RHP)
Some of the key strengths of Senco Gold Limited that investors can take note of are
| Category | Details |
| Business model | The company has a strong brand name with a legacy of over five decades.Senco Gold has a robust network of company-operated showrooms and a well-established asset-light franchise model, which results in operational efficiency and leverage.They have a deliberate emphasis on affordable and lightweight jewellery to meet the preferences of the upwardly mobile and younger generation. |
| Other merits | They are the largest name in the retail organised jewellery in East India based on the number of stores. Senco Gold Limited has established systems and Procedures to mitigate risk and improve efficiencies.They also have the benefit of an experienced management team and institutional investor support. |
Here are some of the risks that investors of Senco Gold Limited IPO should know:
| Category | Details |
| Business viability and profitability | The business of the company can be affected by the presence of many other players in the industry.The business can be adversely affected by the high capital-intensive working capital needs. The profit margins of the company can be affected adversely due to regulatory changes in import duties, a ban on gold leases, etc. |
| Other concerns | Fluctuations in the market prices of gold and diamonds can impact the value of inventory, potentially influencing the income, profitability, and scale of operations for the company.There has been a growing preference of the young consumers towards artificial jewellery or fashion jewellery.The business, financial health, operational outcomes, and growth prospects of the company may be negatively influenced by the prevailing economic conditions in India. |
As of July 3rd, 2023, the grey market premium for the shares of Senco Gold Limited IPO is Rs. 55 as per market observers. This means the shares are expected to list at a premium of Rs 55 per share over the listing cap price of Rs 317.
The company is organized jewellery retail player but has a strong concentration only in East India They are part of a very fragmented and highly competitive industry but has shown a consistent increase in its revenues and profit margins. Investors need to carry out their own due diligence to evaluate the company’s financials, risks, and industry dynamics before making any investment decisions.
Investors can invest in this IPO through the Fisdom app.
The pre-IPO shareholding of Senco Gold Limited is 76.92% promoter share and 23.08% public share. The post-IPO shareholding of Senco Gold Limited is 68.48% promoter share and 31.52% public share.
The listed peers of Senco Gold Limited include industry giants like Kalyan Jewellers Limited and Titan Company Limited
The investor categories in Senco Gold Limited IPO are QIBs (50%), NII (15%), and RII (35%).
The revenues of the company have grown at a CAGR of 19% in the three year period.
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