IPO of Sai Silks Kalamandir | The IPO comprises a fresh issue of shares worth Rs 600 crore and an offer for sale of 2.7 crore shares by the promoter group.
Telangana-based ethnic wear retailer Sai Silks Kalamandir has decided to launch its maiden public offering on September 20. This would be the ninth IPO this month.
The IPO comprises a fresh issue of shares worth Rs 600 crore by the company and an offer for sale (OFS) of 2,70,72,000 shares by the promoter group. The OFS size has been increased from ₹1.8 crore announced in the draft Red Herring prospectus filed in July last year.
Nagakanaka Durga Prasad Chalavadi, Jhansi Rani Chalavadi, Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam and Venkata Rajesh Annam are the selling shareholders.
The company will announce the price range for the offer, which ends on September 22nd, soon. The Anchor Book, part of QIB, will open for subscription for one day on September 18, the day before the issue launch.
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Half of the public issue volume is reserved for qualified institutional buyers (QIB), 15 percent for high net worth individuals (non-institutional investors) and the remaining 35 percent for private investors. Up to 60 percent of the QIB is earmarked for anchor investors.
Sai Silks Kalamandir (SSKL), which claimed to be among the top 10 ethnic wear retailers, particularly sarees, in South India in terms of sales and net profit in FY22, will use the net proceeds from fresh issues to open 30 new stores a cost of Rs 125.08 crore, two warehouses with an expenditure of Rs 25.4 crore and a working capital requirement of Rs 280.07 crore. The company will also repay its debt of Rs 50 crore through the issue proceeds.
Also read: Signature Global will conduct its IPO on September 20 to raise Rs 730 crore
With a network of 54 stores across Andhra Pradesh, Telangana, Karnataka and Tamil Nadu as of July 2023, the company founded by Nagakanaka Durga Prasad Chalavadi offers a diverse range of products including ultra-premium and premium saris, lehengas and ethnic men’s sarees. and wear children’s clothing.
SSKL has recorded solid financial performance in recent years. Net profit rose significantly by 69.2 percent year-on-year to Rs 97.6 billion, supported by strong operating performance. Operating revenue rose 19.7 per cent to Rs 1,351.5 crore in the fiscal year ended FY2023 during the same period.
At the operational level, EBITDA (earnings before interest, taxes, depreciation and amortization) rose 60 per cent to Rs 212.5 crore in FY23, with a margin increase of 394 basis points to 15.72 per cent YoY.
Also read: Updater Services receives approval from Sebi to proceed with IPO plans
Motilal Oswal Investment Advisors, HDFC Bank and Nuvama Wealth Management are the merchant banks for the offering while Bigshare Services is the registrar for the issue.
Signature Global, Yatra Online, Zaggle Prepaid Ocean Services, SAMHI Hotels, RR Kabel, EMS, Jupiter Life Line Hospitals and Ratnaveer Precision Engineering are other IPOs that were launched in September.
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