Jewelery retailer Senco Gold Ltd has sought approval from market regulator SEBI to raise Rs 525 crore through an initial public offering (IPO).
Documents submitted to SEBI: Senco Gold has submitted preliminary documents related to the IPO with the Securities and Exchange Board of India (SEBI). Accordingly, it will issue fresh equity shares worth Rs 325 crore as well as sell shares of Rs 200 crore held by existing shareholder SAIF Partners India.
Apart from this, Senco Gold also plans to allot equity shares worth Rs 65 crore before the IPO. This will reduce the size of the shares to be issued for sale during the IPO.
What will the company do with the money? Senco Gold will use Rs 240 crore from the IPO to meet its working capital requirements. The rest of the amount will be used for general company purposes. Let us inform that Senco Gold has 127 shops in 89 cities and towns across the country, out of which 57 are being operated on the franchise model.