Senco Gold on Friday said that its board has approved the raising of ₹500 crore through qualified institutional placement in one or more tranches. The company has also decided to split its stock in the ratio 1:2.

In a stock exchange filing, the city-based retail jeweller said the existing equity share of the company of face value ₹10 each will be split into two shares of face value ₹5 each.

The decision to split the shares is to improve liquidity of the equity shares through widening of shareholder base and to make it more affordable for retail investors.

On Friday, the company’s shares stood at ₹1,404.45 on the Bombay Stock Exchange, down 0.68 per cent over the previous close.

The stock split is expected to be completed within three months from the date of approval, subject to regulatory and statutory approvals.

Post stock split, the issued, subscribed and paid-up equity shares of the company will increase from 7.77 crore to 15.54 crore, the company said in a stock exchange disclosure.

The fund raise comes at a time the company is expanding its retail network and has also announced the incorporation of a subsidiary called Sennes Fashion focusing on lifestyle products and lab grown diamond jewellery.

Suvankar Sen, MD and CEO, Senco Gold during the first quarter earnings call had said that the company is aiming to open about 18 to 20 stores during FY25.

The company had expanded into Dubai during the first quarter of FY25 and as of Q1FY25, it had 165 showrooms.

Analysts remain bullish on the company’s growth and margins prospect. “Given that preference is relatively higher for high-margin handmade jewellery in eastern India, margins for Senco is better versus South based jewellers,” Emkay Research said.