Hyderabad-based ethnic retailer, Sai Silks (Kalamandir), has initiated its initial public offering (IPO) process on Wednesday. The subscription period will last until September 22. Known as one of the top ten South Indian retailers in ethnic apparel, particularly sarees, the company's IPO includes a fresh issue of equity shares worth up to Rs 600 crore and an offer for sale of up to 2.7 crore shares by selling shareholders, amounting to Rs 1,201 crore (Rs 1 crore = $120,409).
The price band for the IPO has been set at Rs 210-222 ($1 = Rs 83.05) per share, with a minimum bid size of 67 shares in one lot. The allotment basis is expected to be finalized on September 27 and subsequently, Sai Silks' shares are planned to be listed on both the Bombay Stock Exchange and National Stock Exchange on October 4.
Currently, Sai Silks' shares are trading on the grey market at a premium of Rs 7. The company operates through four store formats—Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall—catering to different market segments such as premium ethnic fashion, middle-income group ethnic fashion, and value-fashion.
Market experts have encouraged investors to subscribe to the IPO due to Sai Silks' solid competitive stance in the women's ethnic wear sector. The company has consistently shown strong margins and an attractive return profile over recent years. They anticipate continued growth in key performance metrics as the company plans to expand its store network.
Sai Silks is recognized as a leading ethnic wear and value-fashion retail enterprise in southern India with a portfolio of established formats. It's also known for its significant presence in both offline and online marketplaces through an omni-channel network and a history of growth, profitability, and efficient operating model.
Ventura Securities also emphasized the company's effective use of IT infrastructure to enhance operational efficiencies, scale, and productivity.
Sai Silks has an ambitious growth strategy to extend its store network in South India while preserving its market leadership in women's ethnic wear, particularly sarees. For the financial year ending in March 2023, the company reported a 20% year-on-year revenue increase to Rs 1,351 crore, along with a remarkable 69% YoY surge in net profit to Rs 97.6 crore.
Motilal Oswal Investment Advisors, HDFC Bank, and Nuvama Wealth Management have been appointed as the book-running lead managers for the IPO.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.