Sai Silks (Kalamandir) IPO to open on Sept 20; Check price band, lot size and other details

The initial public offering (IPO) of Sai Silks (Kalamandir) will open for bidding on Wednesday, September 20. The three-day bidding process will conclude on Friday, September 22. The company has set the price band at Rs 210-222. Potential investors can bid for a minimum of one lot of 67 equity shares and in multiples thereof.
 

Incorporated in 2005, Sai Silks (Kalamandir) provides ethnic apparel and value-fashion products, including ultra-premium and premium sarees suitable for weddings, party wear, occasional and daily wear, lehengas, men's ethnic wear, children's ethnic wear and value fashion products comprising fusion wear and western wear for women, men and children.

The company is looking to raise Rs 1,201 crore from its primary offering including a fresh share sale of Rs 600 crore, while and offer for sale (OFS) of up to 2,70,72,000 equity shares by its promoter and promoter group shareholders, who acquired the stake in the range of Rs 1.17-19.81 per share. Anchor book will open on Monday, September 18.

Promoters Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi, along with other promoter group investors including Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam and Venkata Rajesh Annam will participate in OFS.

The net proceeds from the fresh issue will be utilised towards funding capital expenditure towards setting up 25 new stores and setting-up of two warehouses; working capital requirements; repayment or pre-payment of certain borrowings; and general corporate purposes. On the other hand, proceeds from OFS will go to selling shareholders of the company.

As of July 31, Sai Silks (Kalamandir) owned 54 stores in four south Indian states namely Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, with an aggregate area of 6,03,414 square feet. It also offers products through e-commerce channels which comprises its website and other online e-commerce marketplaces.

For the year ended on March 31, Sai Silks (Kalamandir) reported a net profit of Rs 97.59 crore with a revenue from operations at Rs 1,358.92 crore. Its net profit came in at Rs 57.69 crore and a revenue from operations at Rs 1,133.02 crore in FY22.

The company has reserved 50 per cent of the net offer for qualified institutional bidders (QIBs), 15 per cent for non-institutional investors (NIIs) and 35 per cent for retail investors.

Motilal Oswal Investment Advisors, HDFC Bank and Nuvama Wealth Management are the book-running lead managers to the issue, while Bigshare Services has been appointed as registrar to the issue. Shares of the company will be listed on the mainboard of both BSE and NSE.

Disclaimer: Under no circumstances should any person at this platform make trading decisions based solely on the information discussed herein. You should consult a qualified broker or other financial advisor prior to making any actual investment or trading decisions. All information is for educational and informational use only. Business Today does not guarantee, vouch for, endorse any of its contents and hereby disclaims all warranties, express or implied, relating to the same.

Also read: Stocks to watch on September 14, 2023: KEC International, Coffee Day, Vadilal Industries, Radico Khaitan, others