Senco Gold Limited has announced a strategic acquisition that will significantly strengthen its position in the digital jewellery market. The company's board of directors has approved an investment of ₹68.00 crores to acquire a 68% equity stake in August Jewellery Private Limited (AJPL), the owner of the popular Melorra brand.

Strategic Investment Details

The acquisition represents a cash consideration transaction that will make AJPL a subsidiary of Senco Gold Limited. The investment involves acquiring 68% of AJPL's equity share capital through a primary investment where fresh equity shares will be issued.

About August Jewellery Private Limited

AJPL was incorporated on January 16, 2015, under the Companies Act 2013, with its registered office in Bangalore, Karnataka. The company operates under the Melorra brand, specializing in fast fashion lightweight jewellery that creates trend-forward designs inspired by global runways.

Business Operations and Market Presence

AJPL operates 21 stores across India and focuses on manufacturing, producing, designing, marketing, and selling various kinds of gold, silver, precious stones, semi-precious stones, and jewellery items. The brand uses advanced technology to continuously develop and launch fresh designs every week, catering to contemporary consumer preferences.

Financial Performance Overview

The company's turnover data reveals significant fluctuations over the past three years:

Strategic Rationale and Business Impact

The proposed investment aligns with Senco Gold Limited's long-term growth strategy and digital transformation initiatives. The acquisition is designed to reinforce the company's digital and omnichannel strategy, specifically targeting the fast-growing young consumer segment in the jewellery market.

Synergies and Integration Benefits

AJPL's robust design capabilities and e-commerce expertise complement Senco Gold's core competencies in traditional jewellery retail. The integration is expected to create significant synergies across multiple areas:

• Enhanced operational efficiencies through combined resources
• Improved innovation capabilities in product development
• Superior customer experience across digital and physical platforms
• Strengthened market position in the lightweight fashion jewellery segment

Transaction Structure and Documentation

Senco Gold Limited will execute comprehensive documentation to formalize the acquisition, including a Share Subscription Agreement (SSA), Shareholders' Agreement (SHA), and other related documents as required during the transaction process.

Related Party Considerations

The proposed acquisition does not fall within related party transactions. None of the promoter, promoter group, or group companies of Senco Gold Limited have any interest in AJPL, except as creditors. The funds from this primary investment will be utilized for growth and expansion initiatives, as well as discharge of existing liabilities.

This strategic move positions Senco Gold Limited to capitalize on the growing demand for contemporary, lightweight jewellery while expanding its digital footprint in the competitive gems and jewellery industry.

Senco Gold shares surged 14% on Wednesday as the jewellery sector witnessed strong gains following robust Q3 performance updates. The rally came despite broader market weakness, with equity indices trading lower due to profit-taking amid heightened geopolitical concerns.

Market Performance Overview

Broader markets declined on Wednesday, with key indices posting losses despite optimism around the Q3 earnings season.

Both midcap and smallcap indices posted modest gains, contrasting with the decline in benchmark indices. Market breadth remained negative on the National Stock Exchange, with 1,662 stocks declining against 1,363 advancing out of 3,130 stocks traded.

Jewellery Sector Leads Gains

The jewellery sector emerged as a standout performer, with multiple companies posting significant gains on strong Q3 updates.

Titan Company led the Nifty 50 pack with a 5% surge after reporting impressive 40% annual growth in standalone revenue during the December quarter of FY26. The company's performance was aided by surging gold prices, which boosted the entire jewellery sector.

Sectoral Performance

Sectoral indices traded mixed, with some segments posting gains while others declined.

Top Performing Sectors:

• Consumer Durables: +1%
• IT: +1%
• Chemicals: Modest gains
• Pharma: Modest gains
• Metals: Modest gains

Underperforming Sectors:

• Realty: -1%
• Auto: Declined
• Oil & Gas: Declined
• Banking: Declined

Nifty 50 Movers

Among Nifty 50 constituents, technology and financial services stocks led the gainers, while healthcare and automotive stocks weighed on the index.

Top Gainers: Titan, Jio Financial, HCL Tech, Wipro, and Infosys Top Losers: Cipla, Max Healthcare, TMPV, Maruti Suzuki, and Power Grid

Midcap and Smallcap Highlights

Midcap technology stocks showed strong performance with Tata Elxsi, Hitachi Energy, Tata Tech, KPIT Tech, and Persistent Systems surging 4-8%. However, M&M Financial Services, Prestige Estate, Oil India, Jubilant Foods, and IndusInd Bank fell 2-5%.

In the smallcap segment, Neuland Lab, Radico, Wockhardt, Tata Chemicals, and JBM Auto soared 3%, while Ola Electric, IIFL, Cholamandalam Holdings, IGIL, and Zen Tech depreciated by 3-4%.

Market Breadth and Activity

Despite the negative market breadth, trading activity remained robust with 87 stocks hitting 52-week highs and 91 stocks slipping to 52-week lows. Additionally, 51 stocks locked in the upper circuit while 44 counters hit the lower circuit during the session, indicating mixed investor sentiment across different segments.