KOLKATA: The Rs 405 crore initial public offering (IPO) of Senco Gold Ltd will open for subscription on July 4, Suvankar Sen, MD & CEO, Senco Gold Ltd said on Monday. The company has fixed a price band of Rs 301 to Rs 317 per equity share of face value of Rs 10 each and the offer will close on July 6. Bids can be made for a minimum of 47 equity shares and in multiples of 47 thereafter, he said.
The Senco IPO comprises a fresh issue of equity shares aggregating up to Rs 270 crore and an offer-for-sale by SAIF Partners India IV Limited of equity shares aggregating up to Rs 135 crore. The jewellery retail major proposes to utilise the net proceeds of the fresh issue towards funding working capital requirement of the company, which is estimated to be Rs 196 crore and balance amount towards general corporate purposes.
The equity shares are being offered through the red herring prospectus (RHP) of the company dated June 27, 2023 filed with Registrar of Companies, West Bengal at Kolkata and are proposed to be listed on BSE Limited and the National Stock Exchange of India Limited.
Meanwhile, not less than 15 per cent of the offer shall be available for allocation to non-institutional bidders out of which one third of such portion shall be reserved for applicants with application size of more than Rs 2 lakh and up to Rs 10 lakh and two third of such portion shall be reserved for applicants with application size of more than Rs 10 lakh, provided that the unsubscribed portion in either of such sub-categories may be allocated to applicants in the other sub-category of non-institutional bidders and not less than 35 per cent of the offer shall be available for allocation to Retail Individual Bidders (RIBs) in accordance with the SEBI ICDR Regulations, subject to valid bids being received at or above the offer price.
Sharing the journey and dream of his father late Sankar Sen, Suvankar said how Senco Gold & Diamonds is not just a brand but a household name in the eastern part of the country. “Each and every generation has faced its set of challenges. My father late Sankar Sen joined the business in the 1970s and in 1991 the era of gold control started. Post 1991 was the liberalization era and gradually, we expanded our stores. However, 2000 was a game changing year for Senco. It was the year when we started the franchising model thus enabling us to penetrate to the tier-II cities of Bengal and later on in the various states of the country. I joined business in 2007-2008. At that time, the turnover of the company was around Rs 134 crore. Last financial year, we crossed a turnover of Rs 4,000 crore. Today, we have 136 showrooms in 96 across India. Senco’s IPO was a dream of my late father and I am glad we are now able to fulfill his dream,” he said.