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Senco IPO: Senco applied for 525 crore IPO, know what the company does, know details about the issue

Senco IPO: Senco has applied to market regulator SEBI for an IPO of Rs 525 crore.

Senco IPO: Eastern India’s leading jewelery retail chain Senco Gold Limited is preparing to launch an IPO. Senco Gold has filed a draft red herring prospectus (DRHP) with market regulator SEBI for an IPO worth Rs 525 crore. Under this IPO, new shares worth Rs 325 crore will be issued. Apart from this, the company’s shareholder SAIF Partners SAIF Partners India IV will sell equity shares worth Rs 200 crore through Offer for Sale (OFS).

Senco IPO details

  • According to the draft prospectus filed with SEBI, new shares worth Rs 325 crore will be issued under this IPO. However, the company can also consider a pre-IPO placement of Rs 65 crore and if this happens, the size of the fresh issue may come down.
  • Under this IPO, equity shares worth Rs 200 crore will be sold through Offer for Sale (OFS). SAIF Partners India IV Limited has investments in the company since 2014 and will exit through an IPO.
  • The company will use the Rs 240 crore raised by issuing new shares to meet the working capital requirements. Apart from this, the remaining money will be used for general corporate purposes.

What does the company do?

Eastern India’s largest jewelery chain Senco Gold has 127 showrooms in 89 cities and towns in 13 states of the country. Out of this, 70 showrooms are operated by the company and 57 are franchised showrooms. According to DRHP, some of its franchise showrooms are present in areas other than metro and tier-1 cities, through which the company’s business is spread in tier-2 and tier-3 cities. Its operational revenue increased by 9.92 percent CAGR (Compound Annual Growth Rate) to Rs 2420 crore in the financial year 2020-21 as compared to the financial year 2019-20. On the other hand, if we talk about the last financial year 2021-22, in the first eight months of April-November 2021, the company received revenue of Rs 2467 crore from operations on a consolidated basis, while profit of more than Rs 100 crore was made during this period. (Input: PTI)

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