Senco Gold IPO: Investing in India's Premier Jewelry Retailer


Introduction:

Senco Gold Limited, established in 1994, is a prominent jewelry retailer in India. Known for its brand name "Senco Gold & Diamonds," the company offers a wide range of jewelry, including gold, diamond, silver, platinum, and precious and semi-precious stones. With a vast collection of over 108,000 gold jewelry designs and 46,000 diamond jewelry designs, Senco Gold aims to cater to a diverse customer base. As the company prepares for its initial public offering (IPO), let's delve into its profile, growth trajectory, and the investment potential it offers.

Senco Gold IPO Timetable 

EventTentative Date
Opening DateTuesday, 4 July 2023
Closing DateThursday, 6 July 2023
Basis of AllotmentTuesday, 11 July 2023
Initiation of Refunds (Tentative)Wednesday, 12 July 2023
Credit of Shares to Demat (Tentative)Thursday, 13 July 2023
Listing DateFriday, 14 July 2023
Cut-off time for UPI mandate confirmation5 PM on Jul 6, 2023


Expansive Jewelry Collection:

Senco Gold & Diamonds takes pride in its extensive catalog, offering customers a wide array of handcrafted designs. Collaborating with over 170 skilled craftsmen across India, including Kolkata, the company ensures high-quality craftsmanship and unique creations. Additionally, Senco Gold also manufactures lightweight jewelry using advanced machinery and sources jewelry from trusted third-party vendors.


Targeting Diverse Customer Segments:

To cater to the evolving preferences of customers, Senco Gold has strategically developed various brands and collections. Their Everlite brand focuses on lightweight jewelry, appealing to the younger generation and the upwardly mobile segment in India. The Gossip brand offers trendy silver and fashion jewelry, while the Aham collection caters to men's jewelry preferences. For customers seeking premium designer jewelry or a luxurious shopping experience, Senco Gold presents its D'Signia Showrooms and Vivaha collection.


Impressive Showroom Network:

With a retail footprint spanning 136 showrooms across 99 cities and towns in 13 states, Senco Gold has established itself as a pan-India jewelry retailer. These showrooms, covering approximately 409,882 square feet, provide a diverse range of jewelry options to customers. The company operates 70 company-owned showrooms and has partnered with 61 franchisees, ensuring a widespread presence.


Senco Gold IPO Details:

IPO DateJul 4, 2023 to Jul 6, 2023
Listing DateFriday, 14 July 2023
Face Value₹10 per share
Price₹301 to ₹317 per share
Lot Size47 Shares
Total Issue Size[.] shares
(aggregating up to ₹405.00 Cr)
Fresh Issue[.] shares
(aggregating up to ₹270.00 Cr)
Offer for Sale[.] shares of ₹10
(aggregating up to ₹135.00 Cr)
Issue TypeBook Built Issue IPO
Listing AtBSE, NSE
Share holding pre issue69,145,806

Strong Financial Performance:

Senco Gold has showcased consistent growth over the years. As of March 31, 2023, the company reported a total asset value of ₹2,905.32 crore, with a revenue of ₹4,108.54 crore. The net worth stood at ₹944.97 crore, supported by healthy reserves and surplus of ₹876.27 crore. The company's profitability is evident, with a profit after tax of ₹158.48 crore. Key performance indicators such as a price-to-earnings (P/E) ratio of 15.53, a market capitalization of ₹2,462 crore, a return on equity (ROE) of 18.9%, a return on capital employed (ROCE) of 14.2%, and an earnings per share (EPS) of ₹22.93 showcase the company's financial strength.

Period EndedTotal AssetsTotal RevenueProfit After TaxNet WorthReserves and SurplusTotal Borrowing
31-Mar-211,559.302,674.9261.48602.51536.53532.44
31-Mar-222,100.193,547.41129.10725.77659.46862.97
31-Mar-232,905.324,108.54158.48944.97876.271,177.17

Note: All figures are in crores (₹).

Key Performance Indicators:

P/E (x): 15.53

Market Cap (₹ Cr.): 2462

ROE: 18.9%

ROCE: 14.2%

EPS (Rs): 22.93

Please note that the financial information provided is based on the restated consolidated figures for the respective periods.


Objects of the Issue : 

The company intends to utilize the net proceeds from the issue towards the funding of the following objects:

  1. Funding working capital requirements of the company.
  2. General corporate purposes.


Investment Opportunities:

Investing in Senco Gold's IPO provides an opportunity to participate in the growth of India's jewelry retail market. The company's well-established brand, diverse product range, and extensive showroom network position it for further expansion and success. Moreover, Senco Gold's focus on meeting the demands of younger consumers and its ability to adapt to evolving market trends.



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