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Senco Gold Limited IPO – Price, Lot size, Open date, GMP & Review

Written by - Marisha Bhatt

July 5, 2023 7 minutes

All that glitters is indeed gold in the Indian stock markets. The past week was filled with new highs for the Indian stock markets and the IPO market is also lighting up again. The latest IPO opportunity for investors is also a glittering one and is from the business of dealing in precious metals. Senco Gold Limited IPO, a company engaged in the business of selling gold and diamond jewelry and other precious metals is coming out with its IPO on 4th July 2023. 

Senco Gold Limited IPO will open for subscription on 4th July 2023 and will close on 6th July 2023.

Here are all the important details of Senco Gold Limited, including investment price band, allotment date, GMP, benefits, risks of investing in this IPO, and more.

Read More: Mistakes to avoid in IPO investing    

IPO Details 

The key details of Senco Gold Limited are as under. 

  1. IPO Size 

The size of the IPO and different categories of the issue are:

IPO Opening Date4th July 2023 
IPO Closing Date6th July 2023
ListingNSE, BSE
Issue TypeBook Built Issue IPO
Face Value of sharesRe. 10 per share
IPO Price BandRs. 301- Rs. 317 per share
IPO SizeRs. 405 crores 
Offer for SaleRs. 135 crores 
Fresh IssueRs. 270 crores
  1. IPO Dates 

The important dates for Senco Gold Limited IPO are highlighted below:

Opening date4th July 2023
Closing Date6th July 2023
Allotment date11th July 2023
Refund Date12th July  2023
Share Credit Date13th July 2023
Listing Date14th July 2023
  1. IPO Lot Sizes 

Investors can subscribe to Senco Gold Limited shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below: 

Investments in lots Minimum – 1 lot
Maximum – 13 lots
Investment amount Minimum – Rs. 14,147 – 14,899
Maximum – Rs. 1,93,687
Shares Minimum – 47
Maximum – 611
  1. IPO Reservation

Here’s the summary of reservation for different applicant categories in this IPO:

Category of InvestorReservation Percentage
Retail Individual Investors 35%
QIB (Qualified Institutional Buyers)50%
NII (Non-Institutional Bidders)15%

Senco Gold Limited IPO Objectives

This IPO will be a combination of a fresh issue and an offer for sale. The proceeds from the issue will be utilised in the following manner.  

  • The primary use of the proceeds will be towards funding the working capital needs of the company. 
  • The company aims to use any balance proceeds for general corporate purposes.

Top things to know about Senco Gold Limited IPO

Senco Gold Limited, established in 1994, is a renowned jewelry retailer operating across India. Under the brand name “Senco Gold & Diamonds,” the company offers a diverse range of jewelry, including gold, diamond, silver, platinum, precious and semi-precious stone, and other metal jewelry. Additionally, they provide costume jewelry, gold and silver coins, and silver utensils.

Senco Gold boasts an extensive catalog of more than 108,000 gold jewelry designs and over 46,000 diamond jewelry designs. The majority of these designs are handcrafted and manufactured in-house, collaborating with over 170 skilled local craftsmen in Kolkata and throughout the country. The company also produces machine-made lightweight jewelry in gold and diamonds and sources jewelry from external vendors. Their team of 20 designers works to create innovative and stylish jewelry pieces. With a widespread presence, Senco Gold operates over 136 showrooms spanning approximately 409,882 square feet. This includes 70 company-operated showrooms and 61 franchisee showrooms across 99 cities and towns in 13 states throughout India. 

To cater to the younger generation and the upwardly mobile population of India, Senco Gold has introduced brands like Everlite (lightweight jewelry), Gossip (silver and fashion jewelry), and Aham collection (jewelry for men). These collections focus on smaller average ticket-size jewelry. For customers seeking premium designer or heavier jewelry, the company offers the D’Signia Showrooms and Vivaha collection, providing a more exclusive and premium retail experience.

Financials of the company

Senco Gold Limited’s financials are given in the table below:

Year Total Assets (Rs. in cr)Operating Revenue (Rs. in cr)Profit after tax (Rs. in cr)Basic EPS Return on Net Worth
Mar-20232,9054,077158Rs. 22.9318.96%
Mar-20222,1003,534129Rs. 19.42 19.42%
Mar-20211,5592,66061Rs. 9.259.25%

(Source: RHP)

Strengths of the company

Some of the key strengths of Senco Gold Limited that investors can take note of are

Business model The company has a strong brand name with a legacy of over five decades.Senco Gold has a robust network of company-operated showrooms and a well-established asset-light franchise model, which results in operational efficiency and leverage.They have a deliberate emphasis on affordable and lightweight jewellery to meet the preferences of the upwardly mobile and younger generation.
Other meritsThey are the largest name in the retail organised jewellery in East India based on the number of stores. Senco Gold Limited has established systems and Procedures to mitigate risk and improve efficiencies.They also have the benefit of an experienced management team and institutional investor support.

Risks of investment

Here are some of the risks that investors of Senco Gold Limited IPO should know:

Business viability and profitabilityThe business of the company can be affected by the presence of many other players in the industry.The business can be adversely affected by the high capital-intensive working capital needs. The profit margins of the company can be affected adversely due to regulatory changes in import duties, a ban on gold leases, etc. 
Other concernsFluctuations in the market prices of gold and diamonds can impact the value of inventory, potentially influencing the income, profitability, and scale of operations for the company.There has been a growing preference of the young consumers towards artificial jewellery or fashion jewellery.The business, financial health, operational outcomes, and growth prospects of the company may be negatively influenced by the prevailing economic conditions in India.

What is the Grey Market Premium (GMP) of Senco Gold Limited?

As of July 3rd, 2023, the grey market premium for the shares of Senco Gold Limited IPO is Rs. 55 as per market observers. This means the shares are expected to list at a premium of Rs 55 per share over the listing cap price of Rs 317.

Should you apply for Senco Gold Limited?

The company is organized jewellery retail player but has a strong concentration only in East India They are part of a very fragmented and highly competitive industry but has shown a consistent increase in its revenues and profit margins. Investors need to carry out their own due diligence to evaluate the company’s financials, risks, and industry dynamics before making any investment decisions.

How to apply for Senco Gold Limited?

Investors can invest in this IPO through the Fisdom app.

Senco Gold Limited IPO FAQs

1. What is the pre-IPO and post-IPO shareholding pattern of Senco Gold Limited IPO?

The pre-IPO shareholding of Senco Gold Limited is 76.92% promoter share and 23.08% public share. The post-IPO shareholding of Senco Gold Limited is 68.48% promoter share and 31.52% public share.

2. Who are the listed peers of Senco Gold Limited?

The listed peers of Senco Gold Limited include industry giants like Kalyan Jewellers Limited and Titan Company Limited

3. What are the investor categories in Senco Gold Limited IPO?

The investor categories in Senco Gold Limited IPO are QIBs (50%), NII (15%), and RII (35%).

4. What is the increase in revenues of the company?

The revenues of the company have grown at a CAGR of 19% in the three year period.

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