SSKL has four store formats — Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.

MUMBAI, 14 SEPTEMBER, 2023 (GPN): Ethnic apparel Player Sai Silks (Kalamandir) Ltd IPO (initial public offering) will open for public subscription on September 20.The bidding for the anchor investors will open on September 18.

The Hyderabad-based Sai Silks (Kalamandir) Ltd. today announced The initial public offering comprises a fresh issue aggregating up to Rs.600 crore and an offer for sale up to 2,70,72,000 equity shares by selling shareholders. The IPO will close on September 22. The price band has been fixed at Rs. 210-222 per share. Bids can be made for a minimum of 67 shares and in multiples of 67 shares thereafter.

The offer of Sai Silks (Kalamandir) Ltd (SSKL) comprises fresh issue of equity shares worth up to Rs 600 crore and an Offer for Sale (OFS) component of up to 2.70 crore equity shares by promoters and promoter entities, according to the Red Herring Prospectus (RHP).

Under the OFS, Nagakanaka Durga Prasad Chalavadi, Jhansi Rani Chalavadi, Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam and Venkata Rajesh Annam will be selling the shares.

Sai Silks has revised its OFS size from 1.80 crore equity shares to 2.70 crore equity shares.

Half of the public issue size has been reserved for Qualified Institutional Buyers (QIB), 15 per cent for non-institutional investors, and the remaining 35 per cent for retail investors. Out of the QIB portion, up to 60 per cent of the portion is set aside for anchor investors.

Proceeds from the fresh issue worth up to Rs 125 crore will be used for funding capital expenditure towards setting up 30 new stores and up to Rs 25 crore for setting up two warehouses.

Also, the company plans to infuse up to Rs 280 crore for funding the working capital requirements and up to Rs 50 crore for repayment or pre-payment, in full or part, of certain borrowings availed by the firm.

The remaining funds will be used towards general corporate purposes. SSKL is promoted by Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi.

Motilal Oswal Investment Advisors Ltd, HDFC Bank Ltd and Nuvama Wealth Management Ltd (formerly known as Edelweiss Securities Ltd) are the book-running lead managers to the issue.

The equity shares of the company will be listed on the BSE and NSE.

It has four store formats — Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.

As of July 31, 2023, the company had a network of 54 stores in four major south Indian states — Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.

As of July 31, 2023, the company had a network of 54 stores in four major south Indian states — Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.

For the financial year that ended March 2023, SSKL reported a total revenue of Rs 1,351 crore with a net profit of Rs 97.6 crore.

About the company –

Sai Silks Kalamandir (SSKL) was founded by Nagakanaka Durga Prasad Chalwadi. The company has come a long way since its inception and has emerged as a prominent player in the ethnic apparel retail sector.

With a network of 54 stores as of July 2023, SSKL has a strong presence in Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu.

Sai Silks Kalamandir is known for its diverse range of products, which includes ultra-premium and premium sarees, lehengas, as well as men’s and children’s ethnic wear.

The company’s ability to cater to a wide spectrum of customers and offer a variety of traditional clothing options has been a key driver of its success.

In FY22, SSKL reported robust revenue growth. The company’s revenue from operations increased by 19.7% to reach Rs 1,351.5 crore compared to the previous fiscal year.

One of the standout aspects of SSKL’s financial performance is its net profit. In FY22, the company achieved a remarkable 69.2% year-on-year increase in net profit, reaching Rs 97.6 crore.

This impressive growth in net profit indicates the company’s effective cost management and revenue generation capabilities.

This growth in revenue reflects SSKL’s ability to attract customers and maintain a strong market presence.

From an operational perspective, SSKL exhibited impressive performance in FY23. The company’s EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by 60% to Rs 212.5 crore.

Moreover, the margin expanded by 394 basis points to 15.72% compared to the previous fiscal year. This margin improvement is a noteworthy achievement, demonstrating SSKL’s ability to maintain profitability and efficiency.

Sai Silks (Kalamandirl Ltd IPO Final Details

Issue Date’s : 20- 22 Sep 2023
Price Band : ₹210 – ₹222
Market Lot : 67 Shares
Appl Amt : ₹14,874
Size : ₹1201 Cr Approx
QIB : 50%
NII : 15%
Retail Portion : 35%

Retail Form : 2,82,607

HNI Small Form : 2,884
HNI Big Form : 5,667
Face Value : ₹2

Listing At : BSE, NSE
Registrar : Big Share
Allotment : 29-Sep-2023
Listing : 04-Oct-2023. Ends

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