Financial Insights

Senco Gold files DRHP for Rs 525 crore IPO

Kolkata based national retail jeweller Senco Gold has filed it’s Draft Red Herring Prospectus (DRHP) with the market regulator SEBI to float it’s IPO and raise Rs 525 crores.

Senco Gold was established as a private company in 1994 in Kolkata, West Bengal. In 2007, in order to improve their scale of operations and become a national brand, the company was converted into a public company. The company has five decades of experience and a fourth generation entrepreneur in the jewellery industry. The company manufactures and sells quality gold jewellery and manufactures exclusively in Kolkata. The company was given the award of 2nd Most Trusted Jewellery Brand in India in 2020.

Of the 525 crores, 325 crores will be through fresh issue of shares and the balance will be an Offer For Sale (OFS) by SAIF Partners India IV Ltd.

The shares will have a book value of Rs 10 but their price bands, GMP, lot size, date and duration of the issue shall be revealed in due course of time. 50% of the IPO is for QIBs, 35% for RIIs and the balance for NIIs.

The funds raised through fresh issue will be utilized to meet working capital requirements and other general corporate purposes.

Moreover, the company is also considering a private placement for cash consideration of Rs 65 crores. If said placement goes through, the amount will be deducted from the IPO.

Companies like IIFL Securities, Ambit, and SBI Capital Markets will act as the book running lead managers (BLRM) for the IPO.

Highlight by Aman Agarwal.

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