Senco Gold, a jewellery retail company that is based in Kolkata, West Bengal is to put pen to paper and initiate their process of going public with an initial public offering (IPO) worth Rs. 525 crores which is worth just under $ 69 million USD with the market regulators – The Securities and Exchange Board of India (SEBI).
The IPO plan currently encompasses Rs. 325 crore of equity share sales and an offer for sale of equity shares worth Rs. 200 crores. Offer For Sale (OFS) basically means a process of raising funds by which companies go public by the owners selling their own shares therefore having a transfer of ownership in a more transparent fashion.
The company is looking to get some much needed investments by using the pre-IPO method to receive investments worth Rs. 65 crores. If this process goes on smoothly and successfully, Senco Gold will choose to reduce the funds they will raise in the official initial public offering round.
The firm revealed that they will be looking to utilize the inflow of funds to improve their working capital and other corporate operations and processes.
Senco Gold is one of India’s most successful Jewellery retailers with over a 120 retail stores, in almost 90 cities including some of the biggest ones in India like Kolkata, Delhi and Mumbai. Their stores span across 13 states in the country and they are even located in smaller cities and towns.
The company even ships their products worldwide when you purchase through their online store. Senco Gold even ships their products to The United Arab Emirates, Malaysia and Singapore by exporting them in a wholesale fashion.
From the fiscal year of 2019 to 2020, the company witnessed a compound annual growth rate of 9.92% which is heavily commendable considering the fact that it was during the peak of the coronavirus pandemic and the government introduced multiple public lockdowns making it hard for businesses to go on with their daily operations.
The 9.92% of growth translates to a Rs. 2420 Crores revenue in 2020 up to a Rs. 2660 crores revenue in 2021.
The firm also recently announced that they started a share subscription with Oman India Joint Investment Fund Trustee Company Private Limited. The deal is worth 26.63 lakh equity shares at a value of Rs. 75 crores.
IIFL Securities along with Ambit are the firms that will be overseeing and organizing the IPO.
