Retail jewellery major Senco Gold Limited has filed a draft prospectus for its initial public offer, which plans to raise Rs 525 crore.
The public offer comprises a fresh issue of equity shares aggregating to Rs 325 crore and an offer for sale of equity shares aggregating Rs 200 crore by the selling shareholder — SAIF Partners India IV Limited.
SAIF Partners India IV Limited holds 19.23 per cent of the company.
The company plans to use Rs 240 crore of the net proceeds from the issue towards the funding of working capital requirements and the rest for general corporate purposes.
The company may also consider a pre-IPO placement of equity shares aggregating up to Rs 65 crore and the amount raised from such a placement will be reduced from the fresh issue.
Senco Gold currently has 127 showrooms, which includes 70 company-operated showrooms and 57 franchisee showrooms with a total area of over 3.93 lakh square feet in 89 cities and towns across 13 states.
The company in its draft prospectus has said that it follows a hub and spoke model to enter new cities through company-operated showrooms. It then leverages the franchise model to expand to tier 2 and tier 3 locations with a similar strategy being followed in Bengal, Odisha, and Assam.
