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Private equity firm SAIF Partners has invested ₹80 crore in Senco Gold Ltd, a Kolkata-headquartered company, for a minority stake. The investment would partially fund Senco Gold’s expansion of jewellery retail business.
The company is also seeking bank funding of around ₹150 crore for the expansion over the next two years, Suvankar Sen, Executive Director of Senco Gold, told BusinessLine .
“Our funding plan targets a debt-equity ratio of 1:2,” he said. Sen, however, declined to disclose the valuation of the company arrived at before the deal and percentage of shares picked up by SAIF.
Sources familiar with the deal said SAIF’s holding would be less than 26 per cent. SAIF would occupy a board berth, while the existing promoters would have four. The private equity player would exit by 2018-19. “We aim to go in for an initial public offering to pave way for the exit of the private equity fund in 2018-19,” Sen said. The ₹1,200-crore private jeweller currently has 59 stores.
The company, which sells intricate designer jewellery, has adopted the franchise model also for growth. “Half of our retail outlets are owned by the company and the rest are franchise assets. We would maintain this balance in the expanded network ahead,” Sen said. In three years, it aims to double the turnover. The company wants to increase its presence in Assam, Odisha, Jharkhand, Bihar, Maharashtra and National Capital Region.
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