Sai Silks Kalamandir IPO: Everything you need to know

20 Sep 2023 , 06:56 AM

Sai Silks Kalamandir, an ethnic apparel retailer based in Telangana, is planning to launch its initial public offering (IPO) with the following details:

1. Price Band: The IPO’s price band is set at Rs 210 to Rs 222 per share.

2. Issue Size: The total issue size is Rs 1,200 crore, comprising a fresh issuance of shares worth Rs 600 crore by the company and an offer-for-sale (OFS) of 2,70,72,000 equity shares by the promoter group.

3. Investor Categories: The allocation of shares is as follows:

• 35% for retail investors.
• 50% for qualified institutional buyers.
• 15% for non-institutional investors.

4. IPO timeline details: 

• The IPO will be open for subscription from September 20 to September 22.
• The anchor book, which is a part of the Qualified Institutional Buyers (QIB) category, will be opened for subscription on September 18, 2023, one day before the IPO officially opens.
• The basis of allotment for the IPO will be finalized on Wednesday, September 27, 2023.
• Refunds for unsuccessful applicants will be initiated on Friday, September 29, 2023.
• For successful applicants, the credit of shares to their Demat (Dematerialized) accounts will take place on Tuesday, October 3, 2023.
• The shares of Sai Silks Kalamandir are expected to be listed on the stock exchange on Wednesday, October 4, 2023.

5. Lot Size: One lot consists of 67 shares, and at the upper end of the price band, the cost of one lot is Rs 14,874.

6. Lead Managers: The book running lead managers (BRLM) for the issue are Motilal Oswal, HDFC Bank, and Nuvama Wealth Management.

7. Selling Shareholders: The selling shareholders include Nagakanaka Durga Prasad Chalavadi, Jhansi Rani Chalavadi, Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam, and Venkata Rajesh Annam.

8. Utilization of Proceeds: The company plans to use the fresh issue proceeds for various purposes, including:

• Setting up 30 new stores at a cost of Rs 125.08 crore.
• Establishing two warehouses with spend of Rs 25.4 crore.
• Meeting working capital requirements totaling Rs 280.07 crore.
• Repaying Rs 50 crore of debts using the IPO proceeds.

9. Company Overview: Sai Silks Kalamandir operates 54 stores in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu as of July 2023. They offer a diverse range of products, including ultra-premium and premium sarees, lehengas, and men’s and children’s ethnic wear.

10. Financial Performance: In FY23, the company reported a net profit of Rs 97.6 crore, which was a 69.2% increase year-on-year (YoY). Their revenue from operations also grew by 19.7% YoY to reach Rs 1,351.5 crore. Furthermore, their EBITDA in FY23 increased by 60% YoY to Rs 212.5 crore, with a margin expansion of 394 basis points (bps) at 15.72% compared to the previous year.