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HomeAccesoriesSai Silks' IPO to open on September 20, ET Retail

Sai Silks’ IPO to open on September 20, ET Retail


NEW DELHI: Ethnic apparel retailer Sai Silks (Kalamandir) Ltd on Wednesday said its initial share sale will open for public subscription on September 20. The bidding for the anchor investors will open on September 18.

The IPO of Sai Silks (Kalamandir) Ltd (SSKL) comprises fresh issue of equity shares aggregating up to Rs 600 crore and an Offer for Sale (OFS) component of up to 2.70 crore equity shares by promoters’ selling shareholders, according to the Red Herring Prospectus (RHP).

The Hyderabad-based saree retailer is yet to announce the price band for the IPO, which will conclude on September 22.

However, Sai Silks has revised its OFS size from 1.80 crore equity shares to 2.70 crore equity shares by promoters and promoter group entities.

Proceeds from the fresh issue worth up to Rs 125 crore will be used for funding capital expenditure towards setting up 30 new stores and up to Rs 25 crore for setting up two warehouses.

Also, it plans to infuse up to Rs 280 crore for funding the working capital requirements of the company and up to Rs 50 crore for repayment or pre-payment, in full or part, of certain borrowings availed by the firm.

The remaining funds will be used towards general corporate purposes. SSKL is promoted by Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi.

Through its four store formats – Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall — it offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion.

As of July 31, 2023, the company has a network of 54 stores in four major south Indian states – Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.

Motilal Oswal Investment Advisors Ltd, HDFC Bank Ltd and Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Ltd) are the book-running lead managers to the issue.

The equity shares of the company will be listed on the BSE and NSE.

For the financial year that ended on March 31, 2023, SSKL reported a total revenue of Rs 1,351 crore with a net profit of Rs 97.6 crore.

  • Published On Sep 14, 2023 at 02:47 PM IST

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