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Senco Gold Ltd is strengthening its digital and omnichannel strategy with plans to acquire a 68% stake in August Jewellery Pvt Ltd, which operates the Melorra brand, for Rs 68 crore. The deal is aimed at expanding the company's reach among young consumers by combining Melorra's design and e-commerce capabilities with Senco Gold's existing strengths.
The jewellery retailer announced on Sunday that it has signed agreements for the acquisition, which will be completed in multiple tranches by February 2027, subject to the fulfilment of specified conditions, according to a regulatory filing.
Following the transaction, August Jewellery will become a subsidiary of Senco Gold. Including the investment by an entity belonging to its promoter group, the overall stake in August Jewellery is expected to reach 79%.
The investment will be made through the issuance of fresh equity, with the proceeds earmarked for business growth and expansion, as well as the settlement of existing liabilities, the company said.
Senco Gold said the acquisition aligns with its strategy to strengthen its digital and omnichannel presence, particularly among the fast-growing young consumer segment. Melorra's design-led offerings and e-commerce capabilities are expected to complement Senco Gold's existing operations and create operational synergies.
The company added that the transaction does not require governmental or regulatory approvals.
Source: PTI
