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Senco Gold IPO: GMP, Expected price, other details

Senco Gold IPO: GMP, Expected price, other details

Senco Gold Limited is planning an Initial Public Offering (IPO). The IPO will go on sale on July 4, 2023, and will conclude on July 6, 2023. The business intends to raise Rs 405 crores through an IPO, of which Rs 270 crores would be a fresh issue and the rest Rs 135 crores will be an offer for sale.

Senco Gold IPO Review – About the Company

Senco Gold Limited is a pan-India jewellery store founded in West Bengal, India in 1994. Later, in order to extend its activities in the jewellery industry, the Company was transformed to a public limited company under the name Senco Gold Limited in August 2007.

Under the brand name “Senco Gold & Diamonds,” it principally sells gold and diamond jewellery, as well as silver, platinum, and other precious stone jewellery. Across various outlets, the corporation also offers costume jewellery, gold and silver coins, and silver kitchenware.

Senco Gold IPO: GMP, Expected price, other details

Senco Gold Limited, with over 5 decades of experience, is the largest organised jewellery retail business in the eastern part of India in terms of shop count. As of March 31, 2023, the firm has 136 showrooms in 96 cities and towns throughout 13 states, with a total size of roughly 409,882 sq. ft. Senco Gold includes both online and physical locations.

With a catalogue of 120,000 gold jewellery designs and over 69,000 diamond jewellery designs, it offers a wide range of handcrafted jewellery designs, the majority of which are designed and manufactured in-house in close collaboration with over 170 skilled local craftsmen (known as Karigars) in Kolkata and across the country.

The firm, which employs a staff of 20 designers, also produces machine-made lightweight jewellery in gold and diamonds and sources items from third-party suppliers.

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Products of the Company

Senco Gold Limited principally offers gold, diamonds, diamond-studded gold jewellery, silver jewellery, and platinum, gold, and silver coinage. It also offers other items such as costume jewellery and silver kitchenware. It sells jewelery in these categories.

  • Wedding Jewellery
  • Festival Jewellery
  • Daily wear Jewellery
  • Men’s Jewellery 
  • Kids Jewellery 

Senco Gold IPO – Industry Overview

In the worldwide gems and jewellery sector, global gold demand was at an 11-year high in 2022, followed by strong investment demand. Furthermore, demand for bars and coins increased by 2% to 1,217 tonnes, but ETF holdings declined by a lower amount when compared to CY 2021. Investment demand (excluding OTC) increased by 10% to 1,107 tonnes.

According to CRISIL predictions, the Indian gems and jewellery market was estimated valued about Rs 4,700 billion in fiscal 2023, with gold jewellery dominating the total market with a 66% share. As a cherry on top, India topped China in terms of gold consumption and would be the largest consumer of gold jewellery in 2022.

Senco Gold IPO – Financial Highlights

Looking at Senco Gold Limited’s financials, we can see that their assets went from Rs 1559.30 Crores to Rs 2905.32 Crores between FY21 and FY23. Similarly, the company’s sales climbed from Rs 2,674.92 crores to Rs 4,108.54 crores between FY21 and FY23.

Moving ahead, the company’s net earnings climbed from Rs 61.48 Crores to Rs 158.48 Crores between FY21 and FY23. Furthermore, the company’s revenue CAGR climbed at a CAGR of 15.36%, and profit for the year increased at a CAGR of 22.75% from Fiscal 2022 to Fiscal 2023.

Senco Gold IPO – GMP

On June 30th, 2023, Senco Gold Limited shares traded on the grey market at a premium of 18.93%. The stock is expected to trade at Rs 377. This is a Rs 60 per share premium over the cap price of Rs 317.

Summary

In our Senco Gold Limited IPO Review, we looked in depth at the company’s essential facts, including its overview and financials. Market commentators are divided on the IPO and its potential advantages as a result of the company’s legal procedures. That’s all for now. Good luck with your reading!