Senco Gold Ltd Rs 405-crore IPO - Arthvidya.

The initial public offering (IPO) of Senco Gold Limited, valued at Rs 405 crore, is set to commence on July 4th and will be open for subscription until Thursday, July 6th

Company Overview:

Incorporated in 1994, Senco Gold Limited is a pan-India jewelry retail player. It is the largest organized players in eastern India based on its number of stores. It primarily deals in gold and diamond jewelry along with jewelry made of silver, platinum, precious and semi-precious stones, and other metals. Besides this, it offers costume jewelry, gold, and silver coins, and utensils made of silver in its other offerings.

Objects and Details of the Issue:

• Total issue of ~Rs. 405 Cr (at upper price band) consists of fresh issue worth Rs. 270 Cr and offer for sale worth Rs.135 Cr
• To utilize an estimated amount of ₹ 196 Cr from the net proceeds towards the funding of company’s working capital requirement

Investment Rationale:

• Leading organized jewelry player with a strong brand name
• Expansion of its presence through strong distribution channels
• Established low cap-ex business model to improve operating leverage
• Focusing on optimal product mix in order to achieve higher operating margins
• Focus on technology to enhance operational efficiency while targeting youth and upwardly mobile in India


Senco Gold has positioned well in the eastern India and other non-eastern regions with its legacy of last five decades of journey. It has delivered 24% revenue growth over FY21-23 with margin improvement from 6.6% in FY21 to 7.8% in FY23. Although, company’s decent performance in terms of profitability amongst its peers, it has observed challenges generating positive operating cash flow during the last 2 years. Further, debt to equity ratio at 1.2x as on Mar’23 may lead to further contraction in company’s profitability. However, the IPO is issued at 15.5x PE valuation based on its FY23 EPS which is at discount relative to average PE valuation of its peers.

Join Arthvidya Wealth Mantra Today!

Are you interested in learning about share market investing? Join Arthvidya Wealth Mantra for expert guidance and comprehensive classes on the share market. We provide valuable insights into navigating the complexities of investing and help you make informed decisions. When it comes to investing in the share market, many people wonder which shares to buy from the Nifty index. While it is crucial to conduct thorough research and analysis before investing, there are some shares that have shown promising performance.

Investing in the share market can be rewarding, but it also carries risks. It is crucial to diversify your portfolio, stay updated with market trends, and keep a long-term perspective. As the market is dynamic, it is advisable to continuously evaluate your investment strategy and make adjustments when necessary.


Join Arthavidya Wealth Mantra today and equip yourself with the knowledge and skills needed to navigate the share market effectively. Our expert instructors will guide you through the intricacies of investing, help you identify potential investment opportunities, and assist you in making informed decisions. Remember, investing in the share market requires patience, discipline, and a continuous learning mindset to achieve the best possible returns.

Remember, the key to unlocking your financial potential lies in gaining the right knowledge and taking informed actions. Arthvidya Wealth Mantra is your trusted partner in achieving your goals.

Wishing you success and prosperity in your share market endeavors!

Join Arthavidya Wealth Mantra today to learn Investment and Trading in Share Market. 8484036329 / 79 / 87

The above information is solely for educational purpose and not any investment advice.

Please like our FaceBook Page:

Subscribe to our YouTube Channel at