New Delhi: A draft red herring prospectus (DRHP) was filed by Senco Gold with Securities and Exchange Board of India (SEBI) on August 20, 2018, to float its initial public offering (IPO). As per the filing by the jewellery retail player in the eastern region, equity shares of Senco Gold Limited worth Rs 600 crore will be there in the IPO.
According to the available information, the company plans to use the net proceeds which it raised through the fresh Issue for funding the upcoming company operated Showrooms so as to meet the working capital requirements and for other corporate purposes.
The equity shares will be listed on BSE and NSE. The book running lead managers will be IDFC Bank Limited, ICICI Securities Limited, IIFL Holdings Limited, Emkay Global Financial Services Limited and YES Securities (India) Limited whereas Karvy Computershare Private Limited will be the registrar.
The company informed in the filing that currently, it has 93 showrooms in 72 cities and towns whereas as of June 30, 2018, the number of employees of the company is 1,290.
Notably, most of the showrooms are company operated showrooms where products are been sold under the trade name of ‘Senco Gold & Diamonds. The company also market products through franchised showrooms allowing for an asset-light model so as to minimize capital expenditure.
The Draft Red Herring Prospectus filed by Senco Gold gave the exact bifurcation of the showrooms as it showed that 48 showrooms are company operated while 45 are franchise showrooms. Out of all the showroom, maximum number of showrooms are in West Bengal – the numbers reaching to be 60 whereas six are in Uttar Pradesh, five in Odisha, four in Jharkhand, three each in Karnataka, Maharashtra and Assam, two each in Delhi and Bihar and one each in Telangana, Chhattisgarh, Haryana, Madhya Pradesh and Tripura.