People who are interested in the retail textile sector should take note that the IPO of Sai Silks (Kalamandir) Public Limited will remain open from 20 to 22 September, 2023. Sai Silks is a Telangana-based retailer of ethnic apparel. Its products include sarees, party dresses, traditional outfits and Western clothing for all sorts of occasions and price ranges.
If you are looking to invest in a new entrant in this sector, you can check out the details of the company and its upcoming IPO here. We have covered all the important details to help you make an informed decision.
Also Read: How To Apply For An IPO?
Table of Content
IPO Details
The IPO for Sai Silks (Kalamandir) Public Limited is supposed to go live on Wednesday, 20th September, 2023. Take a quick look at some of its key details:
| IPO Open Date | September 20, 2023 |
| IPO Close Date | September 22, 2023 |
| Issue Type | Book Built Issue IPO |
| Face Value | Rs. 2 per share |
| Price Band | Rs. 210 to Rs. 222 per share |
| Minimum Lot Size | 67 shares |
| Total Issue Size | 54,099,027 shares (aggregating up to Rs. 1,201 crore) |
| Fresh Issue | 27,027,027 shares (aggregating up to Rs. 600 crore) |
| Offer for Sale | 27,072,000 shares (aggregating up to Rs. 601 crore) |
| Listed on | BSE and NSE |
About the Company
Sai Silks (Kalamandir) Limited was established by Mr Chalavadi Naga Kanaka Durga Prasad and Mrs Chalamandi Jhansi Rani. It’s a retail textile business group and is one of the top sellers of ethnic apparel, especially sarees in South India.
The company was launched in 2005 under the name of ‘Sai Silks’ after which the name changed to ‘Sai Silk (Kalamandir) Private Limited.’ In 2009, the company changed its name to ‘Sai Silks (Kalamandir) Public Limited’ with a new incorporation certificate.
The company started its journey in Hyderabad as a small retailer of sarees. As of 2023, its business is spread across Andhra Pradesh, Tamil Nadu, Telangana and Karnataka. A substantial portion of its revenue comes from its sale of sarees. Some of its famous brands for sarees include Kalamandalam, Kancheepuram Varamahalakshmi Silks, Mandir and KLM Fashion Mall.
The unique feature of Sai Silks (Kalamandir) Limited is that it provides its customers with a one-of-a-kind shopping experience at quite an affordable price.
Also Read: Benefits of Investing in IPO
IPO Tentative Timeline
Check the tentative dates of Sai Silks (Kalamandir) Public Limited IPO:
| IPO Open Date | Wednesday, September 20, 2023 |
| IPO Close Date | Friday, September 22, 2023 |
| Cut-off time for UPI mandate confirmation | 5 p.m. on September 22, 2023 |
| Basis of Allotment | Wednesday, September 27, 2023 |
| Initiation of Refunds | Friday, September 29, 2023 |
| Credit of Shares to accounts | Tuesday, October 3, 2023 |
| Listing Date | Wednesday, October 4, 2023 |
IPO Lot Size
The details of the lot size of Sai Silks (Kalamandir) Limited IPO are given below:
| Applications | Lots | Shares | Amount |
| Retail (min) | 1 | 67 | Rs. 14,874 |
| Retail (max) | 13 | 871 | Rs. 1,93,362 |
| S-HNI (min) | 14 | 938 | Rs. 2,08,236 |
| S-HNI (max) | 67 | 4,489 | Rs. 9,96,558 |
| B-HNI (min) | 68 | 4,556 | Rs. 10,11,432 |
Company Financials
Before you decide to invest in the IPO of Sai Silks (Kalamandir) Public Limited, take a look at the key financial details of this company:
| Particulars | For the Financial Year Ending (in Rs. Million) | ||
| March 31, 2023 | March 31, 2022 | March 31, 2021 | |
| Total Assets | 12,204.50 | 8,424.87 | 6,654.24 |
| Total Liabilities | 8,231.16 | 5,391.26 | 4,224.34 |
| Total Expenses | 12,253.51 | 10,557.30 | 6,717.87 |
| Total Revenue | 13,589.20 | 11,330.16 | 6,790.95 |
| Profit After Tax | 975.88 | 576.87 | 51.31 |
| EBITDA | 2,125.31 | 1,330.48 | 623.61 |
Strengths of the Company
The strengths of Sai Silks (Kalamandir) Public Limited IPO are discussed below.
- It’s a recognised apparel retail brand in India with a scalable model. Moreover, it’s uniquely positioned to make use of growth in the ethnic and value-fashion apparel industry in our country.
- The company is an important ethnic and value-fashion retail company in the southern part of India. Its portfolio comprises established formats and has a focused sales and marketing strategy.
- Sai Silks has an established and strong presence in online and offline marketplaces. The business also has the advantage of an omni-channel network.
- Sai Silks (Kalamandir) Public Limited holds a good record of profitability, growth unit economics and an efficient operating model.
- Its promoters, management and in-house teams are knowledgeable and experienced and have good execution capabilities.
Risks
The risks involved with Sai Silks (Kalamandir) IPO are as follows:
- The business is mostly focused on the sale of women’s sarees. It’s vulnerable to changes in demand and consumer preferences. These factors may hurt the overall business.
- Current locations of Sai Silk’s stores may become unattractive and suitable new locations may be unavailable at a reasonable price. The business remains exposed to risks related to real estate. Any negative development concerning these factors may hurt the entire business, financial condition and results of operation.
- While the business gets substantial revenue from its stores in South India, adverse developments in these regions may affect its results of operations and revenue.
Also Read: Risk of investing in IPO
Summary
Before you make a decision, it is a good idea to go through the Red Herring Prospectus (RHP) of the upcoming Sai Silks (Kalamandir) Limited IPO. This document contains all the details you need to understand the fundamentals of the company, including its financials, business model and future scope.
But don’t worry if you don’t have the time to go through the detailed document. Give this blog a read and take a glance at the tables provided. It’ll help you to decide on your investment.
