Senco Gold
Book Building issueMainboard₹405 Cr issue
+35.96%
Listing gain over issue price
Issue size
₹405 Cr
1 lot at cut-off
₹14,899
Lot size
47shares
Open
04 Jul 2023
Close
06 Jul 2023
Allotment
11 Jul 2023
Listing
14 Jul 2023
Listing performance
Issue price
₹317
Listed at
₹431
Listing-day close
₹405.30
Latest price
—
Listing gain
+35.96%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 04 Jul 2023 – 06 Jul 2023
- Listing date
- 14 Jul 2023
- Face value
- ₹10 per share
- Issue price
- ₹317 per share
- Lot size
- 47 shares
- Issue type
- Book Building issue
- Total issue size
- ₹405 Cr
- Market cap at offer price
- ₹2,462 Cr
- Promoter holding
- 76.92% → 68.48% pre-issue → post-issue
- ISIN
- INE602W01019
- Registrar
- Kfin Technologies Ltd.
- Lead managers
- IIFL Capital Services Ltd.
- Registered office
- Diamond Prestige, 41A, A.J.C.Bose Road, 10th floor, Unit no.1001, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 38,32,807 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 47 shares per lot, in multiples, at ₹317
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 47 | ₹14,899 |
| Retail (max) | 13 | 611 | ₹1,93,687 |
| S-HNI (min) | 14 | 658 | ₹2,08,586 |
| S-HNI (max) | 67 | 3,149 | ₹9,98,233 |
| B-HNI (min) | 68 | 3,196 | ₹10,13,132 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
38,32,807
Anchor portion
₹122 Cr
at ₹317 per share
Valuation and performance
Valuation at offer price
₹317 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 22.93 | — |
| P/E (×) | 13.82 | — |
| Market cap | — | ₹2,462 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 18.96%
- ROCE
- 14.20%
- Debt / equity
- 1.25
- PAT margin
- 3.89%
- NAV per share
- ₹136.83
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Senco Gold
Senco Gold Limited was incorporated in 1994 as a private limited company in Kolkata, West Bengal, and converted to a public limited company in 2007. The company operates primarily through Company Operated Showrooms and Franchisee Showrooms, selling gold jewellery, diamond jewellery, and jewellery made of silver, platinum, and precious and semi-precious stones. As per CRISIL Report, Senco is the largest organized jewellery retail player in eastern India based on number of stores and among eastern India based jewellery retailers has the widest geographical footprint in non-eastern states. The company manufactures jewellery using skilled job workers (Karigars) and operates an e-commerce platform. Revenue from operations in Fiscal 2023 was ₹41,085.40 million, with gold jewellery accounting for 89.69% of total revenue. Profit after tax for Fiscal 2023 was ₹1,584.79 million.
Company Analysis
from RHPSenco Gold Limited is the largest organized jewellery retail player in eastern India's organized segment, specializing in gold and diamond jewellery sold through showrooms and online platforms under the 'Senco Gold & Diamonds' brand.
Senco Gold Limited was incorporated in 1994 as a private limited company in Kolkata, West Bengal, and converted to a public limited company in 2007. The company operates primarily through Company Operated Showrooms and Franchisee Showrooms, selling gold jewellery, diamond jewellery, and jewellery made of silver, platinum, and precious and semi-precious stones. As per CRISIL Report, Senco is the largest organized jewellery retail player in eastern India based on number of stores and among eastern India based jewellery retailers has the widest geographical footprint in non-eastern states. The company manufactures jewellery using skilled job workers (Karigars) and operates an e-commerce platform. Revenue from operations in Fiscal 2023 was ₹41,085.40 million, with gold jewellery accounting for 89.69% of total revenue. Profit after tax for Fiscal 2023 was ₹1,584.79 million.
Retail jewelleryGold jewelleryDiamond jewelleryPrecious metals retail
Objects of the Issue
- Funding working capital requirements of our Company ₹1,960.00 million p.24
- General corporate purposes p.24
- Working capital purposes ₹1,960.00 million p.63
- General corporate purposes p.63
- Funding working capital requirements of the Company ₹1,960.00 million p.121
- General corporate purposes [●] million p.124
Issue Structure
- Total Issue
- ₹4,050.00 million
- Fresh Issue
- ₹2,700.00 million
- Offer for Sale
- ₹1,350.00 million
- Price Band
- [●]
- Lot Size
- [●]
- Face Value
- ₹10
Business Model
Senco Gold generates revenue primarily through retail sales of jewellery products, including gold jewellery (89.69% of FY2023 revenue), diamond jewellery, and other precious metal jewellery. The company sources gold through gold-metal loans from bullion banks (49.41% in FY2023), bullion dealers, customer exchange programs, and trading jewellery. It manufactures jewellery using Karigars (skilled job workers) and sells through multiple channels: Company Operated Showrooms, Franchisee Showrooms (franchisees operate but use company systems and trademark), and e-commerce platforms. The business model also includes selling under the 'Forevermark' brand through an agreement with DeBeers.
Business Segments
Sale of gold jewellery products
Operation of Company Operated Showrooms and Franchisee Showrooms for sale of jewellery products including diamond jewellery, silver, platinum, and precious and semi-precious stones
Direct retail sales of jewelry through company-owned and operated showrooms located across India
Revenue from sale of products to franchisees and operating revenue from franchisee-operated showrooms
Exports, DG Gold, DG Silver, corporate and e-commerce sales
Owned and operated retail stores selling gold and diamond-studded jewellery
Asset-light franchise outlets for jewellery retail
Sale of gold jewellery, the primary product category
Sale of diamond jewellery and precious/semi-precious stone jewellery
Sale of platinum jewellery
Sale of silver jewellery and silver articles
Sale of fashion jewellery
Manufacturing and retail sale of gold jewellery products
Manufacturing and retail sale of diamond and precious/semi-precious stone jewellery
Manufacturing and retail sale of silver jewellery and articles
Manufacturing and retail sale of platinum jewellery
Manufacturing and retail sale of fashion jewellery
Manufacturing and retail of gold jewellery products
Manufacturing and retail of jewellery featuring diamonds and precious/semi-precious stones
Manufacturing and retail of platinum jewellery
Manufacturing and retail of silver jewellery and articles
Fashion jewellery, novelty items, and accessories
Support service charges and enrollment fees from franchisee showroom partners
SWOT Analysis
Strengths
- • Largest organized jewellery retailer in eastern India with widest geographical footprint(p.22)
- • Strong revenue growth from operations(p.26)
- • Strong profit and earnings trajectory(p.26)
- • Significant brand recognition as 'Senco Gold & Diamonds'(p.46)
- • Multiple product offerings including gold, diamond, silver, platinum jewellery(p.22)
- • Established brand with integrated operations across manufacturing and retail(p.64)
- • Diversified showroom network across multiple formats and geographies(p.37)
- • Strong revenue growth trajectory with improving profitability(p.37)
- • Digital platform expansion to reach broader customer base(p.47)
- • Multiple jewellery brands catering to different customer segments(p.50)
- • Strong brand heritage and legacy(p.129)
- • Leading market position in eastern region(p.129)
- • Strong company-operated showroom base(p.129)
- • Asset-light franchise model with operating leverage(p.129)
- • Focus on light, affordable jewellery for younger demographic(p.129)
- • Established risk mitigation and efficiency systems(p.129)
- • Experienced management with institutional investor backing(p.129)
- • Largest organised jewellery retail player in eastern India by store count with widest geographical footprint in non-eastern states among eastern-based competitors(p.184)
- • Strong brand heritage and trust built over five decades, consistently ranked second most trusted jewellery brand(p.190)
- • Established 'hub and spoke' expansion model balancing company-operated and asset-light franchise showrooms(p.191)
- • Diverse product portfolio across price points from ₹2,000 to ₹500,000 with 120,000+ gold and 69,000+ diamond designs(p.184)
- • Access to skilled Karigars in West Bengal enabling exclusive in-house designed jewellery at competitive prices(p.194)
- • Revenue growth of 23.8% CAGR (FY2021-FY2023) outpacing peers in organised jewellery retail(p.188)
- • Strong systems and digital infrastructure with centralised ERP, POS integration and omni-channel platforms(p.206)
- • Stringent quality control with BIS hallmarking since 2012 and dual certification of diamonds by SGL and GEMEX(p.189)
- • Established investor base with institutional backing(p.221)
- • Dual institutional investor participation ensuring financial stability(p.221)
- • Wholly-owned manufacturing subsidiary for vertical integration(p.222)
- • Experienced and diverse board composition with independent oversight(p.225)
- • Management continuity with long industry experience(p.228)
- • Revenue growth trajectory demonstrating market traction(p.264)
- • Profitability improvement with expanding margins(p.264)
- • Established brand with 50+ years of history and strong consumer trust(p.320)
- • Largest organized retailer in Eastern India by store count with widest geographic footprint among eastern retailers in non-eastern states(p.320)
- • Diversified product portfolio across multiple price points to reach wide customer base(p.323)
- • Strong in-house manufacturing capability with skilled artisans and designer network(p.323)
- • Omnichannel distribution with company-operated and franchisee showrooms plus strong digital presence(p.320)
- • Strong revenue growth with CAGR of 23.80% from Fiscal 2021 to 2023(p.326)
- • Consistent ranking as 2nd most trusted jewellery brand by TRA's Brand Trust Report(p.325)
- • Strong brand recognition with multiple awards in jewellery industry(p.329)
- • Experienced skilled craftsmen creating competitive manufacturing advantage(p.329)
- • Scale enabling bulk commitment to craftsmen at competitive pricing(p.329)
- • Integrated vertical operations enabling responsive product mix adjustments(p.329)
- • Strong revenue growth of 15.36% in Fiscal 2023(p.349)
- • Profit after tax increased 22.75% in Fiscal 2023(p.351)
Weaknesses
- • Heavy dependence on gold jewellery revenue (89.69% in FY2023)(p.40)
- • Substantial working capital requirements constrain growth(p.34)
- • High debt levels (₹11,771.74 million as of March 31, 2023)(p.26)
- • Unregistered key trademarks creating IP vulnerability(p.42)
- • Ongoing tax and criminal proceedings against company and promoter(p.37)
- • Limited trademark registrations and ongoing opposition proceedings(p.42)
- • Negative cash flows from operating activities in prior periods(p.45)
- • Reliance on related party transactions including property leases(p.47)
- • Heavy dependence on experienced but non-exclusive Karigars with no non-compete clauses(p.48)
- • Significant exposure to security risks and inventory management challenges(p.65)
- • Geographic concentration of revenues in Eastern and North-Eastern India(p.57)
- • High debt leverage with restrictive financing covenants(p.57)
- • Contingent tax liabilities pending resolution(p.50)
- • Past security breaches and data leakage incidents(p.47)
- • Large inventory holdings with fluctuating gold prices(p.56)
- • Lost or untraceable corporate records(p.100)
- • High working capital intensity of business(p.121)
- • Significant debt and borrowing obligations(p.122)
- • High working capital intensity with significant inventory requirements and gold metal loan dependencies(p.168)
- • Significant geographical concentration in West Bengal (69.5% of revenue in FY2023) creating regional dependency(p.186)
- • Limited pricing power due to commoditised nature of gold despite being an organised player(p.171)
- • Limited understanding of consumer preferences when expanding to new markets versus local unorganised players(p.171)
- • Franchise showroom margins typically lower than company-operated showrooms despite asset-light benefits(p.192)
- • High dependence on physical inventory requiring significant working capital(p.263)
- • Substantial debt burden with significant annual financing costs(p.264)
- • High current liabilities indicating short-term liquidity pressure(p.263)
- • Concentration of strategic decisions among promoter family members(p.225)
- • Management documentation gaps with reliance on self-certification(p.229)
- • Restrictive covenants from investor shareholders limiting operational flexibility(p.221)
- • Heavy dependence on gold as raw material with concentration risk in inventory(p.325)
- • Geographic concentration with West Bengal contributing 69.50% of revenue in Fiscal 2023(p.322)
- • High current borrowings of ₹11,757.48 million representing significant leverage(p.319)
- • Dependence on gold metal loans for working capital with floating interest rates(p.290)
- • Personal guarantees by key management personnel for borrowing facilities(p.290)
- • Inventory turnover ratio declining from 2.91 in Fiscal 2022 to 2.49 in Fiscal 2023(p.326)
- • Lease liability obligations of ₹2,097.53 million with long-term commitments(p.291)
- • Significant working capital requirement due to gold/diamond inventory(p.353)
- • Heavy dependence on seasonal festivals creating quarterly volatility(p.329)
- • Fixed costs remain high regardless of seasonal sales fluctuations(p.329)
- • Negative operating cash flow of ₹761.03 million in Fiscal 2023(p.354)
- • High financial leverage with outstanding debt of ₹11,771.74 million(p.358)
Opportunities
- • Expansion into non-eastern states with existing presence(p.22)
- • Growing organized jewellery retail market with organized players growing faster(p.34)
- • Rising consumer preference for studded jewellery(p.22)
- • Significant domestic jewellery market size (₹4,700 billion in FY2023)(p.22)
- • E-commerce channel expansion opportunity(p.34)
- • Franchise model expansion using brand recognition(p.46)
- • Growth in diamond jewellery sales (currently lower than gold)(p.35)
- • Expansion into unserved and underserved markets across India(p.37)
- • Growth in organized jewellery retail segment in India(p.37)
- • Increasing consumer preference for branded and certified jewellery(p.51)
- • Digital and omni-channel growth opportunities(p.55)
- • Franchisee model expansion for rapid store network growth(p.53)
- • Scheme-based purchasing offerings to attract customer segments(p.51)
- • Expansion of company-operated showrooms(p.122)
- • Growth in organised jewellery retail segment(p.164)
- • Rising preference for light and diamond-studded jewellery(p.164)
- • Rising young migratory population favouring organised retailers(p.165)
- • Growing online jewellery retail channel(p.165)
- • Benefits from mandatory hallmarking and HUID implementation(p.166)
- • Strong domestic gold demand growth expected(p.158)
- • Shift in consumer demand from unorganised to organised jewellery retailers favoured by regulatory changes(p.171)
- • Rising consumer preference for lightweight jewellery and diamonds, organised retailers' forte, especially among younger demographics(p.171)
- • Growing affordability and urbanisation driven by rising disposable incomes and increasing working women population(p.171)
- • Rapid online jewellery market growth at 38% CAGR (FY2017-FY2022) with expected 7-8% share by FY2025(p.169)
- • Pan-India expansion opportunity with presence in only 13 states and significant tier-II/tier-III penetration potential(p.184)
- • Diversification into complementary luxury and lifestyle products like perfumes and bags(p.199)
- • International expansion through Dubai-based subsidiary(p.222)
- • Geographic expansion with planned store locations(p.222)
- • Manufacturing capacity enhancement through subsidiary(p.224)
- • Dividend distribution capability supporting investor returns(p.257)
- • Expansion in tier-II and tier-III cities where 45-50% of online sales volume is generated(p.323)
- • Growing young consumer base with rising working age population (15-64 years) from 65% in 2013 to 67% in 2021(p.323)
- • Strong digital engagement with website traffic increasing 639.88% from Fiscal 2019 to 2023(p.326)
- • Brand ambassador strategy with celebrity endorsements to enhance market presence(p.325)
- • Expansion of light-weight and affordable jewellery segment through Everlite brand targeting younger demographics(p.323)
- • Digital gold platform (mydigigold.com) for online accumulation and redemption(p.324)
- • Export opportunities with established presence in Dubai, Malaysia and Singapore(p.325)
- • Expansion of showroom network across regions(p.349)
- • Growth in higher-margin diamond and precious stone products(p.330)
- • Strong regional expansion potential with 44.13% growth in South and West(p.349)
- • International expansion through B2B export business in Gulf markets(p.349)
- • Growth opportunity from recovery of pent-up demand post-COVID(p.351)
Threats
- • Intense competition from larger organized players (Titan/Tanishq, PCJ, KJIL, Malabar Gold)(p.33)
- • Unorganized sector comprises 62-67% of market and remains majority player(p.34)
- • Rising e-commerce competition from smaller players with asset-light models(p.34)
- • Volatility in gold and diamond prices affecting inventory value(p.41)
- • Aggressive promotional discounting by competitors(p.34)
- • Regulatory risks on gold metal loans from RBI(p.43)
- • Changing consumer preferences towards lab-grown diamonds(p.40)
- • Dependence on external financing with interest rate risk(p.35)
- • Licenses and approvals expiring (4 showrooms with expired/pending approvals)(p.36)
- • Volatility and uncertainty in gold and diamond prices(p.52)
- • Economic downturn reducing discretionary consumer spending on jewellery(p.64)
- • Regulatory uncertainty in digital gold trading platform operations(p.47)
- • Intense competition from organized and unorganized jewellery retailers(p.37)
- • Franchise partner performance and reputational risks(p.64)
- • Seasonal demand fluctuations affecting year-round sales(p.50)
- • Lease dependency and property cost inflation risks(p.66)
- • Potential labour disruptions and unionization risks(p.66)
- • COVID-19 pandemic and future health crisis impacts(p.55)
- • Macroeconomic headwinds including inflation and currency volatility(p.69)
- • Volatility and fluctuation in gold prices(p.158)
- • Dependence on gold imports and global supply(p.162)
- • Currency depreciation impact on gold prices(p.162)
- • Global economic slowdown and reduced consumer demand(p.145)
- • Geopolitical risks affecting commodity prices(p.147)
- • Rising interest rates reducing investment demand(p.155)
- • Competition from both organised and unorganised players(p.163)
- • Potentially adverse regulatory changes such as import duty hikes or ban on gold on lease affecting demand and margins(p.169)
- • Substitution risk from other asset classes such as equities, bonds and real estate(p.171)
- • Shift towards artificial and fashion jewellery among younger consumers reducing storage value perception of gold(p.171)
- • Intense competition from branded players expanding aggressively in pan-India retail jewellery market(p.168)
- • Volatility in gold and diamond prices affecting customer demand for discretionary jewellery purchases(p.168)
- • Rising inflation and economic slowdown reducing consumer disposable income for discretionary jewellery spending(p.168)
- • Lagging design capabilities in machine-made lightweight jewellery versus countries like Belgium and Italy(p.168)
- • Commodity price volatility affecting gold procurement costs(p.264)
- • Working capital financing dependency on borrowings(p.263)
- • Interest rate sensitivity from substantial debt portfolio(p.263)
- • Post-IPO dilution of promoter control and decision-making autonomy(p.221)
- • Potential regulatory restrictions on dividend distributions(p.257)
- • Volatility in gold and diamond prices affecting product costs and margins(p.327)
- • Risk of disruptions to supply chain and availability of raw materials(p.327)
- • COVID-19 pandemic causing business disruptions and showroom closures(p.326)
- • Regulatory risks including income tax demands and excise disputes(p.304)
- • Exposure to foreign exchange fluctuations with USD trade receivables(p.307)
- • Interest rate risk on variable rate borrowings of ₹11,774.95 million(p.308)
- • Intensity of competition from other organized and unorganized jewellery retailers(p.320)
- • Rapid and unpredictable fashion trends affecting consumer preferences(p.329)
- • Significant competition from organized and unorganized jewellery retailers(p.358)
- • Volatility in gold and diamond commodity prices affecting results(p.357)
- • Dependence on franchisee network success for growth(p.360)
- • Rising regulatory requirements and compliance costs(p.331)
- • Discretionary nature of jewellery purchases vulnerable to economic downturns(p.330)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Suvankar Sen | Promoter | 21.29% (prior to CCPS conversion) / 17.20% (post-conversion) | — |
| Jai Hanuman Shri Siddhivinayak Trust | Promoter | 61.66% (prior to CCPS conversion) / 49.80% (post-conversion) | — |
| Om Gaan Ganpataye Bajrangbali Trust | Promoter | 9.55% (prior to CCPS conversion) / 7.71% (post-conversion) | — |
| SAIF Partners India IV Limited | Selling Shareholder | 19.23% (Negligible prior to CCPS conversion) | — |
| Ranjana Sen | Promoter | — | — |
| Suvankar Sen | Individual Promoter | — | — |
| Joita Sen | Promoter Group | — | — |
| Suvankar Sen | Promoter | 17.20% | — |
| Jai Hanuman Shri Siddhivinayak Trust | Promoter | 49.80% | — |
| Om Gaan Ganpataye Bajrangbali Trust | Promoter | 7.71% | — |
| Suvankar Sen | Individual Promoter | — | — |
| Suvankar Sen | Promoter | — | — |
| Jai Hanuman Shri Siddhivinayak Trust | Promoter | 61.66% of total paid-up equity share capital and 49.80% of total paid-up capital | — |
| Om Gaan Ganpataye Bajrangbali Trust | Promoter | 9.55% of total paid-up equity share capital and 7.71% of total paid-up capital | — |
| Jai Hanuman Shri Siddhivinayak Trust | Promoter | 61.66% | — |
| Om Gaan Ganpataye Bajrangbali Trust | Promoter | 9.55% | — |
| Suvankar Sen | Promoter | 21.29% | — |
| Suvankar Sen | Individual Promoter and Director | — | — |
| SAIF Partners India IV Limited | Selling Shareholder / Promoter Group | — | — |
| SAIF Partners India IV Limited | Selling Shareholder | — | — |
Leadership
Ranjana Sen · Chairperson
Suvankar Sen · Managing Director and Chief Executive Officer
Sanjay Banka · Chief Financial Officer
Surendra Gupta · Company Secretary & Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Senco Gold IPO FAQs
What is the lot size of Senco Gold IPO?
The minimum lot size of Senco Gold IPO is 47 shares. One lot costs ₹14,899 at the cut-off price.
When does Senco Gold IPO open and close?
Senco Gold IPO opened for subscription on 04 Jul 2023 and closed on 06 Jul 2023.
What is the listing date of Senco Gold IPO?
Senco Gold IPO listed on 14 Jul 2023.