Senco Gold gets IPO approval

15 Jul 2022 , 10:58 AM

Jewellery retail chain Senco Gold has got approval from SEBI for its IPO. The IPO will raise up to Rs 525 crore.  Fresh issuance of shares in the IPO will amount up to Rs 325 crore. Offer for Sale will amount up to Rs 200 crore. Offer for Sale will involve selling of shares by its existing shareholder, SAIF Partners India.

Senco runs a chain of around 170 stores in the country. These stores sell gold, diamond, silver jewellery and jewellery made from other valuable items. The company is headquartered in Kolkata. Some of its stores are owned and operated by its franchise partners. It also has stores in Dubai, Malaysia and Singapore. Senco also has an online store. It delivers products purchased from its online store to the addresses of customers. Prominent products  sold in the stores of the company include chains, bracelets, rings, necklaces etc. Price range of jewellery products sold in the stores of the company starts from less than Rs. 10,000 and extend to Rs 50,000 and above.

The amount raised from the IPO will be used for meeting its working capital requirements and for other general corporate purposes. Jewellery products are popular in India. However, the performance of jewellery retail chains is dependent on the state of economy. It is a cyclical business, whose performance varies with the different phases of the economic cycle.

https://www.indiainfoline.com/sencogold-ipo/