The Sai Silks Kalamandir IPO is currently open for subscription until September 22, 2023, presenting investors with an opportunity to tap into India’s thriving ethnic wear market. Here are the key details:
1) Price Band: Sai Silks Kalamandir has set the IPO price band at ₹210 to ₹222 per equity share, with a lot size of 67 equity shares and multiples of 67 shares thereafter.
2) Anchor Investor Allocation: The company raised over ₹360 crore from anchor investors on September 18, 2023.
3) IPO Reservation: Sai Silks IPO has reserved up to 50% of shares for Qualified Institutional Buyers (QIBs), a minimum of 15% for Non-Institutional Investors (NIIs), and at least 35% for Retail Investors.
Sai Silks Kalamandir – A Leading Player
Sai Silks Kalamandir, incorporated in 2005, ranks among the top 10 ethnic clothing retailers in South India in terms of revenue and profit after tax for FY21, FY22, and FY23. The company offers an extensive range of ethnic wear, including lehengas, men’s and children’s ethnic wear, as well as fusion wear and western wear for all age groups. Their products cater to weddings, parties, festivals, and everyday wear.
Utilization of IPO Funds
The net proceeds from the IPO will be used for various purposes, including financing capital expenditures for the establishment of 30 additional stores and two warehouses, working capital requirements, debt repayment, and general corporate purposes.
Sai Silks Kalamandir IPO Review
Rupesh Kumar Singh, Editor at News Next highlights that replicating the Indian ethnic wear industry’s complex inventory management and high customer demand is a challenging task. Ethnic wear has become fashionable not only for weddings but also for national festivals and special occasions, driving sustained demand.
The company employs a system-driven and algorithmic approach for supply chain and inventory management, utilizing both internal production and third-party resources. Sai Silks Kalamandir plans to enhance brand recall through digital marketing campaigns, brand ambassador content, and outdoor advertising.
Rupesh recommends subscribing to the IPO, given the company’s strong position in women’s ethnic wear, robust margins, and consistent growth metrics.
Expert Insights
Rupesh Kumar Singh noted that Sai Silks Kalamandir’s journey to becoming one of the top 10 ethnic wear retailers, particularly in sarees, was marked by persistence, even after an unsuccessful IPO attempt in February 2013. Despite facing challenges due to the COVID-19 impact until FY22, the company reported strong FY23 numbers, indicating promising prospects with new store expansions.
Based on FY23 earnings, the IPO appears fully priced, making it an attractive option for well-informed investors with a medium to long-term investment horizon.
Sai Silks Kalamandir IPO Grey Market Premium (GMP)
The grey market premium (GMP) for Sai Silks Kalamandir IPO stands at +7, signaling a premium of ₹7 in the grey market, according to recent data. This suggests investor interest in the IPO, with the estimated listing price expected to be ₹229 apiece, a 3.15% increase over the IPO price of ₹222.
Please note that the grey market premium reflects investor sentiment and can change over time.
