IPO of Sai Silks (Kalamandir): Sai Silks (Kalamandir) is likely to submit draft IPO valued at Rs 1,000-1,200 crore soon

MUMBAI: Sai Silks (Kalamandir), a Hyderabad-based clothing retailer, plans to submit draft IPO documents to the Securities and Exchange Board of India (Sebi) soon, insider bankers said. The company plans to raise Rs1,000-1,200 crore through the share sale, they said. Financial, , and have been appointed as bankers for the IPO. E-mail inquiries to Sai Silks, Motilal Oswal, Edelweiss and HDFC Bank went unanswered

The company plans to use the proceeds from the IPO to expand, bankers said. As of September 30, 2021, Sai Silks had a network of 45 retail outlets across South India, according to a recent release from CARE Rating. Kalamandir, Sai Silks flagship brand, has stores in Telangana, Andhra Pradesh and Karnataka.

Over the past year, various fashion retailers have raised money through IPOs. In February, the celebration carries the company

went public to raise Rs 3,149 crore while raising about Rs 1,014 crore last November. Fab India has received a nod from Sebi to proceed with its Rs 4,000 crore IPO.

Sai Silks derives most of its sales from women’s clothing, accounting for around 80% of sales.

In February 2013, the company attempted to enter the primary market by providing a safety net for retail investors, but was forced to pull out of the IPO.

The Company’s total operating income increased by 13% from Rs. 1,045 crores in FY19 to Rs. 1,177 crores in FY20. It fell to Rs 6.79 crore in FY21 due to the Covid-induced lockdown. The company posted an operating profit of Rs. 450 crores in the first half of FY22 with a gross profit of around Rs. 49 crores, as per .

The company expects steady sales growth at all of its stores in the second half of FY22, supported by festival and wedding seasons during the period, according to CARE Ratings.