Sai Silk Kalamandir IPO: Consumer-Apparel Retail company IPO to begin from September 20; Key Details here

Team Updater September 14, 2023
Sai Silk Kalamandir is into Consumer-Apparel Retail and is looking raise funds through 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.

Sai Silk Kalamandir IPO is a public offering of shares by Nagakanaka Durga Prasad ChalavadiandJhansi Rani Chalavadi. The IPO will open on September 20 and will close on September 22. The price band is ₹210 to ₹222 per share and the lot size is 67 shares. The issue size is ₹1,201. crore. The shares are expected to be listed on NSE, BSE on October 04 (^). Some additional information that you may find useful are: Company opened 4/8 stores during FY22/FY23 with total stores during FY21/FY22/FY23 at 54/46/42 stores. Company has closed one (1) store during FY21. During FY23 company has average store area of 11,174 sq.ft. with Average revenue from operations per square feet (for all stores) at Rs. 22,397/sq.ft. and Average revenue from operations per square feet (for Mature Stores) at Rs. 22,850/sq.ft. Company spent average capex per store of Rs. 5.17 crores during FY23.: (**) - based on higher price band (^) indicative date


IPO
Sai Silk Kalamandir to raise around Rs 1,169 crores through public issue

Sai Silk Kalamandir IPO is a public offering of shares by Nagakanaka Durga Prasad ChalavadiandJhansi Rani Chalavadi. The IPO will open on September 20 and will close on September 22. The price band is ₹210 to ₹222 per share and the lot size is 67 shares. The issue size is ₹1,201. crore. The shares are expected to be listed on NSE, BSE on October 04 (^). Some additional information that you may find useful are: Company opened 4/8 stores during FY22/FY23 with total stores during FY21/FY22/FY23 at 54/46/42 stores. Company has closed one (1) store during FY21. During FY23 company has average store area of 11,174 sq.ft. with Average revenue from operations per square feet (for all stores) at Rs. 22,397/sq.ft. and Average revenue from operations per square feet (for Mature Stores) at Rs. 22,850/sq.ft. Company spent average capex per store of Rs. 5.17 crores during FY23.: (**) - based on higher price band (^) indicative date

Promoters of the company are Nagakanaka Durga Prasad ChalavadiandJhansi Rani Chalavadi Currently promoters hold 95.23% stake in the company.

Quick Pointers


  • Company aims to raise between Rs 1,169 to 1,201 crs through this IPO.
  • The net proceeds of the issue will be utilized to 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 and 3) Funding working capital requirements - Rs. 280 crores
  • Anchor bidding is expected to commence one day prior to the IPO dates. Tentative anchor bidding date would be 18-Sep-23.
  • Price band for the IPO has been fixed at Rs 210 to 222 per share and bid lot are in multiple of 67 shares. The implied market cap post-issue at Rs 3,253 to 3,405 crs.
  • As per the tentative schedule, allotment date of this IPO is most likely on September 27 and share are expected to be listed on NSE, BSE on October 04.
  • Company has direct competition in the Apparel retail space. It is competing with listed players including Vedant Fashions , TCNS Clothing, Go Fashio, Aditya Birla Fashion and Retai, Shoppers Stop and Trent Ltd. amongst others.
  • Motilal Oswal Investment Advisors, HDFC Bank, Nuvama Wealth Management has been appointed as Merchant Banker to the issue. Bigshare Services Pvt. Ltd. has been appointed as official registrar of the issue.

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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.

Company opened 4/8 stores during FY22/FY23 with total stores during FY21/FY22/FY23 at 54/46/42 stores. Company has closed one (1) store during FY21. During FY23 company has average store area of 11,174 sq.ft. with Average revenue from operations per square feet (for all stores) at Rs. 22,397/sq.ft. and Average revenue from operations per square feet (for Mature Stores) at Rs. 22,850/sq.ft. Company spent average capex per store of Rs. 5.17 crores during FY23.

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.



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Check Allotment Status of IPO

Please check below or visit Bigshare Services Private Limited at here to check allotment status of IPO

Source: DRHP, RHP, Company, Company Website, Industry | Logo/Images published in the article may be copyright of respective companies.

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