13-Sep-2023
2 mins read
Sai Silks Kalamandir recently revealed plans to launch an Initial Public Offering (IPO), although the exact date has not yet been determined. The company aims to release it in the month of September. However, the total funds to be raised through the IPO is yet to be announced. The IPO will include a fresh issuance of Rs 600 crores, along with an offer for sale of up to 18,048,440 equity shares at Rs 2 each. The allocation for retail investors is set at 35%, while Qualified Institutional Buyers (QIB) will have a 50% quota, and High Net-worth Individuals (HNI) will have a 15% allocation.
Sai Silks (Kalamandir) Company Profile
Established in 2005, Sai Silks (Kalamandir) Ltd. specialises in the provision of ethnic and value-oriented fashion attire. Drawing inspiration from the rich culture, traditions, and heritage of India, the company features an extensive portfolio of products. This includes a variety of ultra-luxury and luxury sarees designed for various occasions, such as weddings, parties, and everyday use. In addition, they offer lehengas, men’s and children’s traditional attire, as well as a selection of value fashion items including fusion and western styles for all ages.
Sai Silks operates through four distinct retail formats:
- Kalamandir: This store focuses on offering modern ethnic fashion aimed at middle-income customers, featuring a range of sarees like Tusser, Silk, and Cotton among others.
- VaraMahalakshmi Silks: Catering to those looking for premium silk sarees and handlooms suitable for weddings and special occasions, this store specialises in items such as Banarasi and Kanchipuram sarees.
- Mandir: This upscale store targets high net worth clientele and offers an exclusive collection of designer sarees like Banarasi, Ikat, and Kuppadam.
- KLM Fashion Mall: This format focuses on providing affordable value fashion, including everyday sarees, fusion wear, and western styles for men, women, and children.
Along with its brick-and-mortar stores, Sai Silks has a robust digital presence through its proprietary website, sskl.co.in, and the company is also active on various other e-commerce platforms. As of late May 2022, the company has over 46 retail stores in operation, spread across four states in southern India: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. These stores collectively cover an area of around 550,815 square feet. Financially, the company generated revenues of approximately Rs 11.29 billion, Rs 6.77 billion, and Rs 11.76 billion for the fiscal years 2022, 2021, and 2020, respectively.
Objectives of the Sai Silks (Kalamandir) Limited IPO
The company plans to allocate the net earnings from the IPO for several strategic purposes. These include the establishment of 25 additional retail locations and the construction of two new warehouses to bolster its operational capabilities. The funds will also be used in meeting the working capital needs of the business. Also, the company prepares to prepay or repay a few of its existing loans, either full or partially. The remaining proceeds will be utilised for various general corporate activities.
Financials of Sai Silks (Kalamandir) Limited IPO (In Rs Crore)
| Period Ended | 31-Mar-20 | 31-Mar-21 | 31-Mar-22 |
| Assets | 692.76 | 665.42 | 842.49 |
| Revenue | 1,178.62 | 679.1 | 1,133.02 |
| Profit After Tax | 42.1 | 5.13 | 57.69 |
| Net Worth | 231.51 | 242.99 | 300.66 |
| Reserves and Surplus | 208.05 | 218.93 | 276.6 |
| Total Borrowing | 164.7 | 217.22 | 260.49 |
Important Dates for Sai Silks (Kalamandir) Limited IPO
| IPO Date | Yet to be announced |
| Listing Date | Yet to be announced |
| Face Value | Rs 2 per share |
| Price | Yet to be announced |
| Lot Size | Yet to be announced |
| Total Issue Size | Yet to be announced |
| Fresh Issue | Aggregating up to Rs 600 Crore |
| Offer for Sale | 18,048,440 shares of Rs 2 |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Shareholding pre issue | 126,339,085 |
Sai Silks (Kalamandir) IPO Reservation
| QIB Shares Offered | Not more than 50.00% of the Net offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
Sai Silks (Kalamandir) Limited IPO Promoter Holding
| Pre-Issue Shareholding | 54.16% |
| Post Issue Shareholding | Yet to be announced |
Promoters of the Sai Silks (Kalamandir) Limited IPO
The promoters of Sai Silks (Kalamandir) Limited IPO are Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi.
Lead Managers of Sai Silks (Kalamandir) Limited IPO
The lead managers of Sai Silks (Kalamandir) Limited IPO are Motilal Oswal Investment Advisors Limited, Hdfc Bank Limited and Nuvama Wealth Management Limited.
How to Apply for Sai Silks (Kalamandir) Limited IPO
Wait for the public issue to open for subscription, then click on this link to apply for Sai Silks (Kalamandir) Limited IPO with Bigul https://ipo.bonanzaonline.com/.
How to Check the Allotment Status of Sai Silks (Kalamandir) Limited IPO
The registrar for Sai Silks (Kalamandir) Limited IPO is Bigshare Services Pvt Ltd. To check your allotment status, please click on this link https://ipo.bigshareonline.com/ipo_status.html
FAQS
- What is Sai Silks (Kalamandir) Limited IPO?
Sai Silks (Kalamandir) Limited is planning an Initial Public Offering (IPO) to raise funds for various strategic initiatives. Though the exact date and total funds to be raised are yet to be confirmed, it will include a fresh issuance of Rs 600 crores and an offer for sale of up to 18,048,440 equity shares at Rs 2 each.
- Who are the promoters of Sai Silks (Kalamandir) Limited IPO?
The promoters behind the IPO are Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi.
- Who are the lead managers of the IPO?
The lead managers handling the IPO are Motilal Oswal Investment Advisors Limited, HDFC Bank Limited, and Nuvama Wealth Management Limited.
- How can I apply for Sai Silks (Kalamandir) Limited IPO?
Once the public issue opens for subscription, you can apply for the IPO via this link: Apply for Sai Silks (Kalamandir) IPO with Bigul.
- What are the objectives for the funds generated from the IPO?
The company intends to use the capital raised from the IPO to inaugurate 25 additional stores, establish two new warehouses, fulfill its working capital needs, and either repay or partially prepay its existing financial obligations.
- What are the IPO’s reservation details?
50% of the IPO is reserved for Qualified Institutional Buyers (QIBs), 15% for High Net-worth Individuals (HNIs), and 35% for retail investors.
- What is the pre- and post-IPO promoter shareholding?
The promoter shareholding prior to the IPO is 54.16%. The post-IPO shareholding details are yet to be announced.
- How do I check the allotment status of Sai Silks (Kalamandir) Limited IPO?
The registrar for the IPO is Bigshare Services Pvt Ltd. You can check your allotment status by visiting this link.
- What are the key dates for the IPO?
Both the IPO and listing dates are yet to be announced.
- What is the face value of the shares?
The face value of each share is Rs 2.
- What is the lot size and price for the IPO?
Both the lot size and the price of the IPO have yet to be announced.
- Where will the shares be listed?
The shares are expected to be listed on BSE and NSE.