Apparel Retail Company Sai Silk Kalamandir files DRHP with SEBI for the proposed IPO; Key Details here

Sai Silk Kalamandir is into Consumer Apparel Retail and is looking raise funds through Fresh Issue & Offer for Sale

Sai Silk Kalamandir to raise Fresh Issue aggregating up to Rs. 600 crores and an Offer for Sale 27,072,000 Equity Shares through public issue IPO

Sai Silk Kalamandir IPO: Sai Silks (Kalamandir) Limited has filed Draft Red Herring Prospectus (DRHP) for proposed initial public offer (IPO) and raise funds through an offer of equity share capital having face value of Rs. 2 per share via initial public offering.

Initial Public Offer comprising of a Fresh Issue aggregating up to Rs 600 crores and an Offer for Sale up to 27,072,000 Equity Shares.. Motilal Oswal Investment Advisors, HDFC Bank, Nuvama Wealth Management have been appointed as lead merchant bankers for the proposed IPO. It has appointed Bigshare Services Pvt. Ltd. as Registrar and Share transfer Agent. Company is yet to finalize issue size and some other important details relating to the IPO.

Details about upcoming IPO:
As per the details available in DRHP, fundraising will consist of an Fresh Issue aggregating Rs. 600 Crs and offer-for-sale (OFS) of up to 27,072,000 equity shares by Nagakanaka Durga Prasad Chalavadi, Jhansi Rani Chalavadi, Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam and Venkata Rajesh Annam who will offload Up to 6,409,345Equity Shares, Up to 7,949,520 Equity Shares, Up to 3,083,865 Equity Shares, up to 656,295 Equity Shares, Up to 6,346,975Equity Shares, Up to 2,120,500 Equity Shares and Up to 505,500 Equity Shares respectively...

Objects of the issue:
1) Funding capital expenditure towards setting-up of 30 new stores - Rs. 125 crores, 2) Funding capital expenditure towards setting-up of two warehouses - Rs. 25.4 crores, 3) Funding working capital requirements - Rs. 280 crores, 4) Repayment or pre-payment, in full or part, of certain borrowings - Rs. 50 crores., and 5) General corporate purposes.

Promoters of Sai Silk Kalamandir are Nagakanaka Durga Prasad ChalavadiandJhansi Rani Chalavadi and holds 95.23% stake in the company.

About Company:
Established in 2005, Sai Silk is into ethnic apparel retail chain, particularly sarees, in south India. Company operates through four store formats, i.e., Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall. Company caters to premium ethnic fashion, ethnic fashion for middle income and value-fashion segments. As of July31, 2023, operated 54 stores in four major south Indian states, i.e., Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.

About Industry:
The share of organised apparel retail which was 32% in 2020 is expected to increase to 48% in 2027. (Source: Technopak Report) The share of organised retail in women’s apparel, which was 14% in Fiscal 2015, increased to 31% in Fiscal 2022 and is expected to reach 44% by Fiscal 2028, amounting to ₹ 1,754.44 billion.

Source: SEBI, BSE, NSE, DRHP, Sai Silk Kalamandir, Industry Data

Disclaimer: Above article only publishes details about the IPO for educational purpose and doesn't solicit or invite any interest to invest. Please visit respective sources to verify and know more details about the IPO. We advise investors to take opinion from certified/SEBI registered experts before taking any investment decisions.