Senco Gold Planning Rs 450-Crore Fundraise, Says CEO Suvankar Sen

Senco Gold Ltd. is planning to raise funds of up to Rs 450 crore from the market, according to Managing Director and Chief Executive Officer Suvankar Sen. The company's board will soon meet to discuss the possible fundraiser, he told NDTV Profit.

The fundraiser will enable Senco Gold carry on with its expansion plan of opening 18 to 20 stores every year, the top executive said.

Talking about the impact of the ongoing festive season on the company, Sen said he expected sales to grow 10-12% despite the damp due to rising prices of the precious metal after the Fed rate cut.

“Considering that we have Diwali, Dhanteras and the wedding season, I am assuming that there will be an increase in sales, in terms of value for the industry—about 10-12% compared to last year—because you have to keep in mind that the gold prices have moved up,” he said.

Gold prices in India have seen a sharp rise after the US Federal Reserve cut its interest rates by 50 basis points in September. The upward trend in pricing is also a result of the wars in the Middle East. The price of 22-carat gold in India on Friday was Rs 7,127.3 per gram, up by Rs 90 from a day ago.

While the sales value of gold will increase, there will be a volume degrowth, Sen said.

“When the gold prices are going up, there is always a budget that everyone keeps in mind and if you look at the overall economy, there might be a marginal increase in the disposable income that will go on to this sector. So value-wise, there will always be an increase,” he explained.

But because the gold prices are going up, there will be volume degrowth and that can be anything between 5-10%, the top executive said.

Shares of Senco Gold Ltd. gained over 2% to touch an intraday high of Rs 1,445 apiece on the NSE on Friday. The stock was seen trading flat in the afternoon session, 0.87% higher at Rs 1,426.65 a piece against benchmark Nifty 50's dip of 0.81% at around 1:50 p.m.