Senco Gold IPO: 10 Key Things to Know Before Bidding for the Offer.

Rajesh
0

The upcoming initial public offering (IPO) of Kolkata-based jewellery retailer Senco Gold presents an opportunity for investors to participate in the company's growth. As the first IPO of the second half of the current calendar year, it is important to understand the key aspects of this offering before making any investment decisions. In this article, we will highlight 10 crucial factors that potential investors should be aware of before subscribing to the Senco Gold IPO.

Senco Gold IPO

1) IPO Dates:

The Senco Gold IPO will open for subscription on July 4 and close on July 6. Prior to this, the anchor book opened for investors on July 3.

2) Price Band:

The price band for the IPO has been set at Rs 301-317 per share. This implies a market capitalization range of Rs 2,351-2,462 crore for the company.

3) Issue Size:

Senco Gold aims to raise Rs 405 crore through its maiden public issue. This consists of a fresh issuance of shares worth Rs 270 crore and an offer-for-sale (OFS) of Rs 135 crore by investor SAIF Partners India IV.

4) Objectives of Issue:

The proceeds from the OFS will go to the selling shareholder, SAIF Partners, while the fresh issue funds will primarily be utilized for the company's working capital requirements (Rs 196 crore) and general corporate purposes.

5) Lot Size:

Retail investors can bid for a minimum of 47 equity shares and in multiples of 47 shares thereafter. The minimum investment by retail investors would be Rs 14,899 per lot, and the maximum investment cannot exceed Rs 2 lakh.

6) Company Profile:

Senco Gold is the largest organized jewellery retail player in the eastern region of India. It offers a wide range of gold, diamond, silver, platinum, and precious and semi-precious stone jewellery. With 75 owned showrooms and 61 franchisee showrooms, the company has a strong presence, particularly in West Bengal.

7) Financials:

In FY22, Senco Gold recorded a consolidated profit of Rs 158.5 crore on a revenue of Rs 4,077.4 crore, representing a growth of 23 percent and 15.35 percent, respectively, compared to the previous year. The company has shown consistent profitability, supported by diverse product offerings and multiple income streams.

8) Promoters:

The promoters of Senco Gold are Suvankar Sen and his family, along with their trusts. They hold a 76.92 percent shareholding in the company. SAIF Partners India IV and Oman India Joint Investment Fund II also have stakes in the company.

9) Risks and Concerns:

Investors should be aware of the competitive and fragmented nature of the Indian retail jewellery sector. Senco Gold's business also relies on skilled designers, karigars (craftsmen), and sales personnel. Additionally, fluctuations in the price of gold could impact sales volumes in the short term.

10) Listing Dates and GMP:

The allotment basis will be finalized by July 11, with equity shares credited to investors' demat accounts by July 13. The listing of Senco Gold shares on the BSE and NSE is scheduled for July 14. Analysts have reported a 20 percent premium in the grey market over the upper price band, indicating positive market sentiment.

Conclusion:

The Senco Gold IPO presents an opportunity for investors to participate in the growth of one of India's leading jewellery retailers. By understanding the key aspects of the offering, investors can make informed decisions regarding their participation in the IPO. However, it is always recommended to seek advice from certified experts before making any investment decisions.

Also Read : HMA Agro Industries IPO: All You Need to Know about the Public Offering.

Note: The information provided in this article is for informational purposes only and should not be considered as investment advice. Investors are advised to conduct their own research and consult with professionals before making any investment decisions.

Tags

Post a Comment

0Comments
Post a Comment (0)