Sai Silk Kalamandir Limited (SSKL) gets listed on BSE. Mr. Prasad Chalavadi, Founder & MD, SSKL being felicitated by Mr. Subhash Kelkar, CIO, BSE at the SSKL listing on BSE today in Mumbai – Photo By GPN
MUMBAI, 27 SEPTEMBER, 2023 (GPN): Sai Silks (Kalamandir) Ltd (SSKL) recently made its debut today on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) after its initial public offering (IPO). The company had initially priced its shares at Rs 222 per share, but upon listing, the stock opened at Rs 231 on the NSE and Rs 230 on the BSE, reflecting a 4 percent premium over the issue price.
The IPO had received a decent response from investors and was subscribed 4.47 times.The portion for qualified institutional buyers (QIB) was subscribed 12.17 times, non-institutional investors subscribed 2.54 times and the category for retail individual investors (RIIs) got 0.91 per cent subscription.
SSKL is among the leading ethnic and value fashion retail company in South India having a portfolio of established formats with focused sales and marketing strategy.
It has a strong presence in offline and online marketplace with an omnichannel network and is the leading apparel retail brand in India with a scalable model, which is well positioned to leverage growth in the ethnic and value-fashion apparel industry, it said.
The Indian ethnic wear business is a difficult business to replicate, given its high customer needs and complex inventory management. Dressing in ethnic wear is now a common trend not only at wedding celebrations but also country-wide festivals and other occasions and celebrations.
Production is in-house and through third parties and its entire supply chain and inventory management is system driven and algorithmically managed at every stage in its supply and distribution chain.
SSKL has a track record of consistent growth and profitability, and it is strategizing to expand its footprint with a plan to set up 25 new stores. The issue was at a P/E valuation of around 27.3x, which was fairly priced, according to analysts.
SSKL intends to continue to enhance the brand recall of products through the expansion of footprint digital marketing campaigns, brand ambassador content and outdoor advertising. This gives SSKL a strong competitive advantage in the women’s ethnic wear, strong margins and returns profile over the past few years.
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