Senco Gold Limited IPO

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i. Senco Gold is a pan-India jewellery retail player with a history of more than five decades and have a fourth generation entrepreneur in the jewellery industry as their Promoter. They are the largest organised jewellery retail player in the eastern region of India based on number of stores and among eastern India based jewellery retailers, they have the widest geographical footprint in non-eastern states

ii. They primarily sell gold and diamond jewellery and also sell jewellery made of silver, platinum and precious and semi-precious stones and other metals. Their other offerings also include costume jewellery, gold and silver coins and utensils made of silver. Senco Gold products are sold under the “Senco Gold & Diamonds” tradename, through multiple channels, including their 75 Company Operated Showrooms and 61 Franchisee Showrooms and various online platforms, including their website www.sencogoldanddiamonds.com.

iii. Their strategy of operating through multiple channels enables them to allocate capital as required, as they continue to expand geographic presence and work towards an omni channel network. With a catalogue offering more than 120,000 designs for gold jewellery and more than 69,000 designs for diamond jewellery, the company offer a large variety of designs of handcrafted jewellery, most of which are designed and manufactured in-house by their designers in close collaboration with skilled local craftsmen (generally termed Karigars) in Kolkata and across the country.

iv. They have 136 showrooms, which have a total area of approximately 409,882 sq. ft., in 96 cities and towns over 13 states across India. Some of their Franchisee Showrooms are located in areas other than metros and tier-I, providing us greater reach in tier-II locations.

Competitive Strengths

i. We have a strong brand name with heritage and a legacy of over five decades
ii. Largest organised jewellery retail player in the eastern region of India based on number of stores
iii. Strong ‘Company Operated Showroom’ base complemented by an established asset-light ‘franchise’ model leading to operating leverage.

Objects of the Senco Gold Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Funding working capital requirements of the company, and ii. General corporate purposes.
DRHP of Senco Gold Limited IPO
RHP of Senco Gold Limited IPO

Senco Gold Limited IPO Details:

Open Date: Jul 04 2023
Close Date: Jul 06 2023
Total Shares: 1,27,76,025
Face Value: ₹ 10 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 405 Cr.
Lot Size: 47 Shares
Issue Price: ₹ 301-317 Per Equity Share
Listing At: NSE,BSE
Listing Date: Jul 14 2023

Promoters And Management:

i. Ranjana Sen, aged 64 years, is the Chairperson and Whole Time Director of the Company. She holds a bachelors degree in arts from the University of Calcutta.* She has been associated with the Company since the incorporation of the Company and has over 29 years of experience in the jewellery industry ii. Suvankar Sen, aged 39 years, is a Whole Time Director designated as Managing Director and Chief Executive Officer of the Company. He holds a degree in bachelor’s of science with Honours in Economics from St. Xavier’s College, University of Calcutta. He also holds a post-graduate diploma in business management from the Institute of Management Technology, Ghaziabad. iii. Vivek Kumar Mathur, aged 60 years, is a Non-Executive Nominee Director on the Board and has been nominated to the Board by SAIF Partners India IV Limited (the Selling Shareholder) pursuant to the terms of the Shareholders’ Agreement. He holds a bachelor’s degree in engineering, with honours, specialising in the chemical branch, and a masters’ degree in science, with honours, specialising in chemistry, each from the Birla Institute of Technology and Science, and a master’s degree in business administration from the Graduate College of the University of Iowa

Financials of Senco Gold Limited IPO:

A. Balance Sheet
Particular (In Crore) Mar-21 Mar-22 Mar-23
Equity Share Capital 53.19 53.19 55.85
Instruments entirely equity in nature 13.30 13.30 13.30
Reserves 536 659 876
Borrowings 532 863 1,177
Trade Payables 61 117 144
Other Liabilities 363 394 638
Total Liabilities 957 1,374 1,960
Net Block 67 69 85
Capital Work in Progress 2 7 13
Investments 0.03 0.03 0.13
Other Assets 221 223 306
Total NC Assets 291 299 404
Receivables 28 39 45
Inventory 1,039 1,391 1,885
Cash & Bank 9 10 9
Other Assets 193 361 561
Face value 10 10 10
B. Profit & Loss Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Sales 2,660 3,535 4,077
Raw Material Cost 1,841 2,834 2,972
Purchases of Stock In Trade 290 564 846
Change in Inventory 154 -417 -396
Employee Cost 52 75 93
Other Expenses 147 202 245
Other Income 15 13 31
EBITDA 190 290 348
EBITDA Margin 7.13% 8.20% 8.52%
Depreciation 40 42 46
Interest 67 71 86
Profit before tax 84 177 216
Tax 22 48 58
Net profit 61 129 158
NPM (%) 2.29% 3.63% 3.85%
C. Cash Flow Statement
Particular (In Crore) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 180 281 330
Receivable 0.08 -12 -6
Inventory 48 -352 -494
Payable -64 56 27
Other WC Items 60 -5 126
Working Capital Changes 43 -312 -347
Direct Taxes -42 -39 -59
Net Cash Inflow from Operating Activity 181 -70 -76
Cash from Investing Activity
Fixed assets sold 0.1 0 0
Acquisition of companies -14 -25 -31
Other investing items -40 -132 -167
Net cash inflow from investing activities -54 -157 -198
Cash from Financing Activity
Proceeds from shares 0 0 75
Proceeds from borrowings 0 331 315
Repayment of borrowings -43 -0.3 -1
Intrest paid fin -68 -70 -83
Dividends paid 0 -15 -11
Other financing items -11 -17 -20
Net Cash Flow 5 1 -0.06
 

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Senco Gold Limited 4077 158 20.40 15.53 317 2462
Kalyan Jewellers India Limited 14071 432 4.20 33.2 147 15147
Titan Company Limited 40,575 3,274 36.61 83.2 3,048 2,70,566
* All data is as per FY23.

Lead Manager of Senco Gold Limited IPO:

  1. Ambit Capital Private Limited
  2. IIFL Securities Ltd
  3. SBI Capital Markets Limited

Registrar of Senco Gold Limited IPO:

  1. Kfin Technology Private Limited

Company Address:

Senco Gold Limited Diamond Prestige, 41A, A.J.C. Bose Road, 10th floor, Unit no. 1001, Kolkata – 700 017 Phone: +91 33 4021 5000 Email: corporate@sencogold.co.in Website: https://sencogoldanddiamonds.com/

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