Saturday, December 9, 2023

Senco Gold IPO – Dates, GMP, Financials, Valuation and Assessment

Senco Gold IPO would open for subscription on 4th July, 2023. Firm is a pan-India jewelry retail participant. Senco Gold IPO GMP right now signifies Rs 70 to 80 per share with low quantity. Is that this like one other Kalyan Jewellers IPO that listed with a 15% discounted worth? On this article we would offer Senco Gold IPO Particulars, Financials, Objects of the IPO, Valuation, Assessment and Conclusion.

Senco Gold IPO Situation Particulars and Value

IPO Opening Date 04-Jul-23
IPO Closing Date 06-Jul-23
IPO Itemizing Date 16-Jul-23
Situation Kind Ebook Constructed Situation IPO
Face Worth Rs 10 per fairness share
IPO Value band Rs 301 to Rs 317 per fairness share
Lot Measurement 47 Shares
Min Order Amount 47 Shares
Itemizing at BSE and NSE
Complete Situation Measurement Rs. 405 Crores
    Contemporary concern     Rs. 270 Crores
    OFS     Rs. 135 Crores
QIB shares supplied Not lower than 50% of the provide
NII/HNI shares supplied No more than 15% of the provide
Retail shares supplied No more than 35% of the provide

Now we have used Senco Gold RHP filed on SEBI web site as supply information for this overview and evaluation.

Senco Gold IPO – Dates, GMP, Financials, Valuation and Review

About Senco Gold Restricted

They’re a pan-India jewelry retail participant with a historical past of greater than 5 a long time and have a fourth technology entrepreneur within the jewelry business as its Promoter.

They’re the most important organised jewelry retail participant within the japanese area of India based mostly on variety of shops. Amongst japanese India based mostly jewelry retailers, they’ve the widest geographical footprint in non-eastern states.

They primarily promote gold and diamond jewelry and in addition promote jewelry made from silver, platinum and valuable and semi-precious stones and different metals.

Its different choices additionally embody costume jewelry, gold and silver cash and utensils made from silver.

Its merchandise are bought beneath the “Senco Gold & Diamonds” commerce title, by a number of channels, together with its 75 Firm Operated Showrooms and 61 Franchisee Showrooms (together with 4 franchisee owned and Firm operated Showrooms) and numerous on-line platforms, together with its web site

How are Senco Gold Restricted Financials?

Listed here are the financials of the corporate.

In abstract, the corporate’s revenues and whole property witnessed vital development over time.  Whereas firm earns skinny margins, these are secure within the final 3 years.

Monetary Yr ending / Interval ending (Amt in Crores)
Particulars FY21 FY22 FY23
Complete Belongings 1,559.3 2,100.2 2,905.3
Complete Income 2,674.9 3,547.4 4,108.5
Revenue After Tax 11.8 39.8 31.7
Revenue % 0.44% 1.12% 0.77%

What are the Objects of the IPO?

The objects of the provide have each OFS and contemporary concern.

1) OFS – Below provide on the market, promoting shareholders would promote the shares and proceeds would go to them. The corporate wouldn’t get something.

2) Contemporary concern – Firm intends to make the most of the contemporary concern for the next:

  • Funding working capital necessities of the corporate and
  • Normal company functions.

What’s the valuation of Senco Gold’s IPO?

Senco Gold IPO worth band is Rs 301 to 317 per share.

  • If we contemplate final yr FY23 EPS of Rs 22.87, P/E ratio works out to be 14x
  • If we contemplate Final 3 Years Weighted EPS of Rs 19.43, P/E ratio works out to be 16x
  • The listed friends like Titan Firm Restricted is buying and selling at P/E 81x (Highest) and Kalyan Jewellers Restricted is buying and selling at P/E of 30x (Lowest) and business common P/E is 55x. Therefore, the IPO Value band at P/E of 14x to 16x is attractively priced.

What’s Senco Gold GMP now?

Senco Gold IPO GMP right now usually is between Rs 70 to 80 per share.

Whereas GMP as per ipowatch signifies Rs 55, as per Chanakya Nipothi, Senco Gold GMP is Rs 75.

What are Senco Gold IPO Dates?

IPO Opening Date Tuesday, 4 July 2023
IPO Closing Date Thursday, 6 July 2023
Foundation of Allotment Tuesday, 11 July 2023
Initiation of Refunds Wednesday, 12 July 2023
Credit score of Shares to Demat Thursday, 13 July 2023
Itemizing Date Friday, 14 July 2023
Minimize-off time for UPI mandate affirmation 5 PM on Jul 6, 2023

What are the optimistic Elements in Senco Gold IPO?

1) The corporate has a powerful model title with a legacy of over 5 a long time.

2) As per CRISIL report, the corporate is without doubt one of the largest jewelry retail gamers within the japanese area of India based mostly on variety of shops.

3) It runs on a enterprise mannequin the place it has a powerful firm operated showroom based mostly complemented with asset gentle franchise mannequin. This is able to result in operational leverage.

4) Firm had sturdy income development in the previous couple of years.

5) Although firm margins are skinny, it earns constant margins.

6) IPO worth is attractively priced in comparison with its friends.

What are the Threat or Unfavourable Elements in Senco Gold IPO?

1) Sturdy competitors within the Indian jewelry market poses a danger of shedding clients and market share, impacting firm enterprise and monetary situation.

2) Inadequate working capital might have a damaging impact on its enterprise, monetary situation, and operations.

3) Failure to acquire mandatory approvals, permits, and licenses might adversely have an effect on firm operations.

4) Previous authorized proceedings and investigations by tax and customs authorities might have an opposed influence on the enterprise and monetary situations.

5) Incapability to develop modern and widespread jewelry designs might cut back demand and influence its revenues.

6) Heavy dependency on sale of gold jewelry makes its enterprise weak to elements affecting gold procurement and gross sales.

Senco Gold IPO Assessment and Conclusion

Is Senco Gold IPO good or unhealthy for funding?

Senco Gold Restricted’s IPO has each optimistic and damaging elements for traders to think about.

Firm has sturdy model title with legacy of over 5 a long time. It is without doubt one of the largest jewelry retail gamers within the japanese area of India with sturdy income development in the previous couple of years. Its share worth is attractively priced.

Although firm margins are skinny, it earns constant margins.

Firm has danger elements like sturdy competitors, heavy dependency on key personnel and an excessive amount of dependency on sale of gold jewelry. Buyers shouldn’t neglect what occurred when Kalyan Jewelry got here for IPO. It bought listed with 15% low cost on the itemizing day (we gave Keep away from IPO advice). Now throughout a bull run, the share worth has risen by 70%.

Excessive danger traders who perceive all these danger elements can make investments on this IPO from medium to long run perspective.

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Suresh KP
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