Senco Gold Ltd

Target and deal summary

• Target: August Jewellery Private Limited (AJPL), brand Melorra.
• Deal type: investment in AJPL equity share capital.
• Status: documentation underway; expected completion by 31 October 2026.
• Earlier target completion date was 30 September 2026.
• Regulatory approvals: SEBI LODR Regulation 30 applicable.
• Form of consideration: not disclosed.
• Ownership stake: not disclosed.
• Background: AJPL operates the Melorra brand; incorporation date and turnover not disclosed.
• Rationale: acquisition aims to hold equity in AJPL; terms unchanged from initial intimation.

Key details

• Parties: Senco Gold Limited; August Jewellery Private Limited (AJPL).
• Purpose: Extend strategic and marketing tie-up with AJPL (Melorra) to 31 March 2027.
• Key terms: Tenure extended to 31 March 2027; terms unchanged; no share exchange or acquisition.
• Related party status: Not a related party transaction.
• Impact: No change in ownership; continuation of existing marketing collaboration.
• Other disclosures: Annexure-1 with regulatory details; available on company website.
• Amendment/termination: Extension constitutes amendment to tenure under existing agreement.

Director re-appointment

• Special resolution to reappoint Bhaskar Sen as Independent NED for 1 year; results by 3 Nov 2026.

Senco Gold Ltd: Trading Window closed from Thursday, 1st October, 2026 till the end of 48 hours after the declaration of the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended 30th September, 2026.

Rating actions

• Fixed Deposit Programme Rs 880 crore rated [ICRA]A+ (Stable); reaffirmed/assigned for enhanced amount.
• Commercial Paper Rs 500 crore rated [ICRA]A1; reaffirmed.
• Fund-based/Non-fund-based working capital facilities Rs 2,400 crore rated [ICRA]A+(Stable)/[ICRA]A1; reaffirmed.
• Unallocated limits Rs 600 crore rated [ICRA]A+(Stable)/[ICRA]A1; reaffirmed.
• Total rated amount increased to Rs 4,380 crore.

Rationale & key metrics

• Consolidated analysis considers SGL and subsidiaries due to strong linkages.
• Consolidated revenue CAGR about 23% from FY2020 to FY2026.
• Q1 FY2027 consolidated revenue up about 67% YoY.
• FY2026 OPM 11.8% and NPM 6.7%; aided by gold prices and inventory gains.
• Projected FY2027 OPM 7.5-8.0%; NPM 3-4%.
• Leverage elevated (TOL/TNW ~1.8x); debt coverage ~4.8x–4.9x; potential moderation.
• High working capital intensity; liquidity adequate with enhanced limits.
• Geographical concentration in West Bengal (~63% revenue); expansion planned pan-India.
• Regulatory risk and gold price volatility; competitive, fragmented market.

Outlook & material changes

• Outlook: Stable.
• Material change: fixed deposit limit enhanced; total rated amount increased.

Financial highlights

• FY2026 consolidated operating income Rs 8,430 crore; OPM 11.8%.
• FY2026 consolidated gearing TOL/TNW 1.8x; interest coverage 4.8x.

Director change

• Re-appoints Mr. Bhaskar Sen as Non-Executive Independent Director for a one-year term.
• Term from 18 September 2026 to 17 September 2027, subject to shareholder approval.
• Board approved based on Nomination Remuneration and Compensation Committee's recommendation.
• Independence criteria under Companies Act 2013 and Listing Regulations satisfied.
• Not debarred from holding office by SEBI or other authority.
• Profile: B.Com (Hons); CAIIB; four decades in banking.
• Former Chairman & Managing Director, United Bank of India.
• Previously Executive Director, Dena Bank; Independent Director, Bandhan Bank.
• Associated with SENCO since 2021.

Re-appointment of Independent Director

• Re-appointment approved for Mr. Bhaskar Sen as Non-Executive Independent Director for a second one-year term.
• Term from September 18, 2026 to September 17, 2027, subject to shareholder approval.
• Profile: B.Com (Hons), CAIIB; 40+ years in banking; ex-Chairman/MD United Bank of India.
• Previous roles: Executive Director, Dena Bank; Independent Director, Bandhan Bank.
• Associated with Senco since 2021.
• Not related to any other Directors.
• Not debarred by SEBI or other authorities.