Senco Gold IPO: All You Need To Know

Significant competition from well-established players in local markets. Emerging competition from unorganised players via e-commerce.

The trademark for the company's name, Senco Gold & Diamonds, has been objected to. Third-party usage of the company name can confuse customers, lead to negative publicity, and adversely affect goodwill.

The company has been subject to a search and seizure operation by the income tax department and other government agencies.

The business is dependent on skilled artisans, designers, and sales teams. Failure to attract the right employees or any negative actions by franchisee personnel who fall outside Senco Gold's purview may harm the business's image.

The jewellery industry is subject to rapid and unpredictable changes in fashion trends and customer preferences.

Senco obtains gold on a loan basis, primarily from bullion banks, which remain subject to RBI regulations. Any adverse change in the regulations governing gold on a loan basis may affect the financial condition and results of operations.

The lion's share of revenue comes from the sale of gold jewellery.

Volatility in the market price of gold and diamonds has a bearing on the inventory value, income, profitability, and scale of operations.

Binding agreement with DeBeers India to maintain minimum levels of 'Forevermark' jewellery and pay minimum fees to DeBeers, irrespective of sales of associated diamond jewellery.