Jewellery retailer Senco Gold & Diamonds plans to reduce its short-term debt and fuel its expansion plans, leveraging the funds raised through its recently concluded qualified institutional placement (QIP), says MD & CEO Suvankar Sen.

The company raised ?459 crore via the QIP.

Its short-term debt, currently at around ?1,500 crore, primarily includes gold loans. Nearly ?1,000 crore of the total loans is in the form of metal gold loans, while the remaining ?500 crore comprises cash credit.

Senco plans to open 18-20 stores annually, with a mix of 8-10 company-operated stores and the remaining through franchise partnerships.

This initiative aims to deepen its presence across tier-2, tier-3, and tier-4 towns, particularly in the eastern and northern regions.

Out of the ?459 crore, about ?150 crore will be used for the new stores.

The company recently established Sennes Fashion as a wholly-owned subsidiary of Senco, focusing on lab-grown diamonds, leather, and perfumes.

Sen said the non-jewellery segment will not require investments of more than ?40-50 crore, which will be deployed gradually over a period of time.

The immediate focus will be on funding inventory for existing high-performing stores and new stores that are set to open.

The company has a market capitalisation of ?9,027 crore. Its shares have risen 54% over the last year.

Courtesy: CNBC TV 18