Senco Gold has filed a draft red herring prospectus with capital markets regulator SEBI to raise ₹525 crore through an initial public offering (IPO).
The IPO of Senco Gold comprises fresh issue of equity shares aggregating up to ₹325 crore and an offer for sale of equity shares aggregating up to ₹200 crore by selling shareholder SAIF Partners India IV.
The company proposes to utilise ₹240 crore of net proceeds from the issue towards funding working capital requirements and the rest towards general corporate purposes.
Pre-IPO placement
The company may also consider a pre-IPO placement of equity shares aggregating up to ₹65 crore. If the pre-IPO placement is undertaken, the amount raised from placement will be reduced from the fresh issue.
According to a Crisil Report, Kolkata-headquartered Senco Gold, which operates under the trade name ‘Senco Gold & Diamonds’, is the largest organised jewellery retail player in the eastern region of India based on number of stores.
Senco Gold currently has 127 showrooms (70 company operated showrooms and 57 franchisee) in 89 cities and towns across 13 States in India.
Its revenue from operations grew at a CAGR of around 10 per cent from ₹2,420 crore as of March 31, 2020, to ₹2,660 crore as of March 31, 2021.
The company has recently entered into a share subscription with Oman India Joint Investment Fund Trustee Company — the trustee of Oman India Joint Investment Fund II — for the issue and subscription of 26,63,541 equity shares for an aggregate consideration of ₹75 crore.
The book running lead managers to the offer are IIFL Securities, Ambit Private and SBI Capital Markets.
The equity shares are proposed to be listed on the BSE and NSE.
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