SENCO GOLD LIMITED - IPO DETAILS

SENCO GOLD LIMITED - IPO DETAILS 

Company Overview 

Senco Gold has a legacy of over 5 decades. The company was incorporated on 22 Aug 1944 and is in the business of jewellery retails. Senco Gold primarily sells gold and diamond jewellery along with jewellery made of silver, platinum, precious and semi-precious stones, and other metals. The company also offers costume jewellery, gold, and silver coins, and utensils made of silver. 

With a catalog of more than 108,000 designs for gold jewellery and more than 46,000 designs for diamond jewellery, the company offers a variety of designs of handcrafted jewellery, most of which are designed and manufactured in-house in collaboration with over 170 skilled local craftsmen in Kolkata and across the country. As on March 31, 2023, the company has a team of 20 designers. The company also manufactures machine-made lightweight jewellery in gold and diamonds and source jewellery from third-party vendors. 

Their standard showrooms have an Average Ticket Size of ₹48,000.00, D'Signia Showrooms have an Average Ticket Size of ₹51,000.00 and Everlite Showrooms have an Average Ticket Size of ₹29,000.00, each for the Fiscal 2023. The company has over 136 showrooms which have a total area of approximately 409,882 sq. ft. It includes 70 company-operated showrooms and 61 franchisee showrooms spread across 99 cities and towns over 13 states across India. 

Objective of the IPO 

Here are a few quick reasons why Senco Gold going public:  

1. The fund will be used for the procurement of inventories in the upcoming showrooms. 

2. A part of the fund will be assigned to brand building and different marketing capabilities. 

3. Expansion of business will be another major part where the funds will be utilised. 

4. General corporate purpose 

Company Financials 

Key Performance Indicator 

Pros 

1. Through various retail stores, the brand has reduced geographical concentration. 

2. The brand sells hallmark jewellery and certified diamonds, resulting in impeccable trust-building among the customers. 

3. The strong brand recollection among customers leads to higher investment in brand. 

4. The diverse product portfolio and constant introduction of new products help the brand to cater to evolving consumers. 

Cons 

1. Due to the presence of lots of different pan-India jewellery chains, there is higher competition. 

2. Any adverse regulatory changes like hike in import duty, ban on the gold lease, etc. can affect the margins of the company. 

3. The preference of the younger consumer is more toward artificial/fashion jewellery. 

4. The business can be affected by highly working capital-intensive operations. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”