It is the largest organized jewelry retail player in the eastern region of India based on the number of stores. As on March 31, 2023, the company had 136 showrooms, which have a total area of approximately 409,882 sq. ft., in 96 cities and towns over 13 states across India.
In FY23, Their standard showrooms had an average ticket size of Rs. 48,000, D'Signia showrooms had an average ticket size of Rs. 51,000, and Everlite showrooms had an average ticket size of Rs. 29,000.
Segment-wise contribution to revenue
|Diamond and precious/semi-precious stones||6.8%||5.3%||5%|
|Silver Jewellery and articles||1%||1%||0.8%|
|Novelty and accessories||0.12%||0.12%||0.1%|
About the industryThe domestic gems and jewelry market was roughly ~Rs 4,700 billion in fiscal 2023 with gold jewelry dominating the overall market with a 66% share. Along with being one of the largest consumers of gold, India ranks fourth in global gold recycling, according to the World Gold Council (WGC).
According to CRISIL Research, the organized segment can continue to gain market share and account for 42-47% by fiscal 2026 from 33-38% in FY22 due to changing consumer preferences, i.e., increasing demand for diamond-studded and light-weight jewelry, a greater variety of designs and better design capabilities and favorable regulatory changes.
The Rs. 405 crore public offer of Senco Gold Limited comprises a fresh issue of equity shares aggregating up to Rs. 270 crore and an offer for sale of Rs. 135 crore from existing shareholders.
Objects of the issue and proceeds utilization
|Purpose||Proceeds (₹ crores)|
|Funding working capital requirements of the company||196|
|General corporate purposes||Balance|
Financial information and other valuation metrics
|Financial Year||Total Assets (₹ crores)||Total Revenue (₹ crores)||Profit After Tax (₹ crores)||EBITDA (₹ crores)|
|March 31, 2021||1,559.3||2,674.9||61.5||189.9|
|March 31, 2022||2,100.1||3,547.4||129.1||290|
|March 31, 2023||2,905.3||4,108.5||158.5||347.8|
Comparison with listed peers
|Company||Total Income (₹ crores)||PE Ratio||EPS||Market Cap (₹ crores)|
|Senco Gold Ltd.||4,108.5||13.9||22.93||2,462|
|Kalyan Jewellers Ltd.||14,109.3||29.29||4.2||14,628|
|Titan Company Ltd.||40,883||81.13||36.61||268,952|
Risk factors to considerDependency on Gold jewelry sales: Nearly 90% of the company’s revenues have been dependent on the sale of gold jewelry. Any factors adversely affecting the procurement of gold or our sales of gold jewelry may negatively impact the business, financial condition, results of operations, and prospects.
Volatility in Gold markets and impact on inventory: Volatility in the market price of gold and diamonds has a bearing on the value of the company’s inventory and may affect their income, profitability, and scale of operations.
Negative cash flows: The company has experienced negative cash flows from operating and investing activities in previous fiscals which may adversely affect their financial condition, results of operations, and prospects in case the same continues in the future.
Related party transactions and Income tax raids: Company has entered into transactions with related parties that may potentially involve a conflict of interest. The company has also been subject to a search and seizure operation by the income-tax department in the past, which has resulted in taxation and criminal proceedings being initiated against the company and its individual promoter.
Contingent liabilities: The company has a number of contingent liabilities which can affect profitability adversely if any of these contingent liabilities crystallizes.
Geographic concentration of sales: As nearly 65% of the sales come from the eastern and northeastern regions of India, any adverse developments related to competition, economic downturn, and demographic changes in these regions, may adversely affect the business prospects, financial conditions, and results of operations of the company.
|Issue Period||4th July to 6th July 2023|
|Deadline for accepting UPI mandate||Until 5 PM on the issue closing day|
|Finalization of Allotment||11th July 2023|
|Initiation of Refunds||12th July 2023|
|Credit of Shares||13th July 2023|
|Date of Listing||14th July 2023|
|Mandate end date||21st July 2023|
|Anchor Investors Lock-In End Date||5th August 2023|
How to apply to the Senco Gold Limited IPO?You can apply for the Senco Gold Limited IPO using any supported UPI app by following two steps:
- Enter your bid on Kite
- Accept the UPI mandate on your phone