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Last Updated on October 10, 2023 by BFSLTeam BFSLTeam

Sai Silks (Kalamandir) Limited IPO

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?

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 DateSeptember 20, 2023 
IPO Close DateSeptember 22, 2023 
Issue TypeBook Built Issue IPO 
Face ValueRs. 2 per share
Price BandRs. 210 to Rs. 222 per share
Minimum Lot Size67 shares 
Total Issue Size54,099,027 shares (aggregating up to Rs. 1,201 crore)
Fresh Issue27,027,027 shares (aggregating up to Rs. 600 crore)
Offer for Sale27,072,000 shares (aggregating up to Rs. 601 crore)
Listed onBSE 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 confirmation5 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: 

ApplicationsLotsSharesAmount
Retail (min)167Rs. 14,874
Retail (max)13871Rs. 1,93,362
S-HNI (min)14938Rs. 2,08,236
S-HNI (max)674,489Rs. 9,96,558
B-HNI (min)684,556Rs. 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: 

ParticularsFor the Financial Year Ending (in Rs. Million)
March 31, 2023March 31, 2022March 31, 2021
Total Assets12,204.508,424.876,654.24
Total Liabilities8,231.165,391.264,224.34
Total Expenses12,253.5110,557.306,717.87
Total Revenue13,589.2011,330.166,790.95
Profit After Tax975.88576.8751.31
EBITDA2,125.311,330.48623.61

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.

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