Sai Silks IPO – Review, Bid, Size, Allotment, Subscription, GMP & RHP
Last Updated Date: Sep 22, 2023The IPO of Sai Silks (Kalamandir) Limited consists of a Fresh Issue accompanied by an Offer for Sale as well. The company is seeking the IPO route to raise up to Rs. 1,000- Rs. 1,200 crores to accomplish the IPO objective and run its operations more efficiently.
The Hyderabad-based company has filed the Draft papers with the capital market regulator to seek its approval for the IPO launch.
The Sai Silks IPO is a mainline IPO whose details and stats we will discuss in this Sai Silks Kalamandir IPO Review.
| Face Value | Rs 2 |
| Price Band | Rs 210 to Rs 222 |
| Listing At | BSE, NSE |
| Min. Order Quantity | 67 Shares |
| Listing Date | October 4, 2023 |
| Offer for Sale | Rs 601.00 Cr |
| Fresh Issue | Rs 600.00 Cr |
| IPO Size | Rs 1,201.00 Cr |
| Tick Size | 1 |
Sai Silks IPO Overview
Sai Silks is among the largest retailers of ethnic apparel operating in India from Hyderabad. They offer and cater to a wide variety of customers with their unique designs and attires designed with details.
Sai Silks IPO will be a combination of a Fresh Issue of Equity Shares aggregating up to Rs. 600 crores and an Offer for Sale for 18,048,440 equity shares. Promoters and Promoter Group will be offloading their shares in the IPO.
Sai Silks IPO Important Dates
| Events | Date |
| IPO Opening Date | September 20, 2023 |
| IPO Closing Date | September 22, 2023 |
| Basis of Allotment Finalization | September 27, 2023 |
| Refunds Initiation | September 29, 2023 |
| Credit of Shares to Demat Account | October 3, 2023 |
| Share Listing Date | October 4, 2023 |
IPO dates of an IPO are declared by the company after receiving approval from SEBI on its DRHP. This is a mandatory requirement before launching the IPO in the market.
Sai Silks filed the preliminary papers on 21st July 2022 with SEBI and will act further on flooring the IPO after the approval is received. The DRHP consists of all the details related to the company, its operations, history, company board and promoters, financial statements and every other detail related to the company.
Sai Silks IPO dates will be available shortly after the DRHP approval.
Sai Silks IPO Price, Size, Share Offerings
| Face Value | Rs 2 |
| Price Band | Rs 210 to Rs 222 |
| Offer for Sale | Rs 601.00 Cr |
| Fresh Issue | Rs 600.00 Cr |
| IPO Size | Rs 1,201.00 Cr |
Sai Silks IPO Size comprises the Fresh Share Issue and Offer for Sale. The face value of the equity shares is Rs. 2 each. The Sai Silks IPO Price will be determined through the Book Building Process.
The equity shares offered in the IPO will be listed on BSE and NSE. Post-listing, the shares will be traded in the stock market and their price changes will be derived through the market forces of Demand and supply.
Sai Silks IPO Grey Market Premium
| Date | GMP (Rs.) | Kostak Rate (Rs.) | Subject to Sauda (Rs.) |
| NA | NA | NA | NA |
Grey Market Premium is an influential factor in an IPO. The trading trends of this market have a direct impact on the stock market. The equity shares of the issuer company are traded in this market before their listing on the stock exchange.
Sai SIlks IPO GMP will be an assistance for the investors and traders to estimate the share price and bid in the IPO accordingly at the right price. Since the price will be determined through the Book Building Process after the subscription period, bidders will bid according to the price band.
Sai Silks IPO Subscription Status
| Day / Date | QIB | NII | RII | Total Subscription |
| 1st Day – 20th Sep | 0.00x | 0.04x | 0.12x | 0.07x |
| 2nd Day – 21st Sep | 0.50x | 0.27x | 0.27x | 0.34x |
| 3rd Day – 22nd Sep | 1.47x | 0.66x | 0.37x | 0.75x |
| Shares Offered or Net Issue | 10,819,807 | 8,114,854 | 18,934,659 | 54,099,027 |
Sai Silks IPO Subscription period will range from 3 trading days to 10 trading days. The subscription will be reserved in the following manner for the different categories of investors:
for qualified institutional buyers (QIBs), half of the net offer i.e., 50% will be reserved, for Non-Institutional Investors (NII), 15% of the issue will be reserved for allocation and further the remaining 35% of the issue will be available for allocation to the Retail Individual Investors (RII).
Sai Silks IPO Allotment Status
Sai Silks IPO Allotment process will lead to the shares being credited into the accounts of successful bidders. The allotment process is one of the final steps after the IPO has closed for subscription and the company has determined the final share price.
Allotment of shares is done online where the equity shares are credited in the Demat Accounts of the successful bidders.
Sai Silks IPO Live Performance
Check out the Sai Silks IPO Performance from its price, day changes, percentage changes, and other details to help you make investment or withdrawal decisions.
Subscribe to Sai Silks IPO – Open Free Demat Account Now!
Sai Silks – Company Review
Which started as a partnership firm in 2005 with just two partners in the name, Sai Silks has now become a Public Limited Company worth millions emerged as ‘Sai Silks (Kalamandir) Limited’.
Sai Silks is one of the largest apparel retailers in South India with its wide range of products handcrafted to offer the best of designs to the customers.
The company has four widely known and established brands, namely –
- Kalamandir
- Kancheepuram Varamahalakshmi Silks
- Brand Mandir
- KLM Fashion Mall
As of now, Sai Silks has widened its horizons in the state of Karnataka, Tamil Nadu, Telangana, and Andhra Pradesh.
Products or Services
Sai Silks started off its journey with the main focus on Women’s ethnic wear fashion and over the years, it has presented numerous attires and patterns. Alongside with keeping the focus on women’s attire, the company also added men’s and kids’ ethnic wear under its roof.
At present, you can find Women’s Dress materials, men’ Wear, Kids’ Wear, and Gold & Silver Jewelry in the store of Sai Silks.
Whether you want a beautifully detailed saree or ready to wear apparel for women, men or kids, you have it at Sai Silks.
The company entered in the Jewelry segment with its company, Sai Swarnamandir Jewellers Private Limited.
Promoters and Holding
The Promoters of Sai Silks (Kalamandir) Limited are:
- Nagakanaka Durga Prasad Chalavadi
- Jhansi Rani Chalavadi
The management of the company comprises of:
- Ravindra Vikram Mamidipudi, in the position of Chairman & Independent Director
- Nagakanaka Durga Prasad Chalavadi, in the position of Managing Director
- Kalyan Srinivas Annam, in the position of Whole-time Director
- Doodeswara Kanaka Durgarao Chalavadi, in the position of Whole-time Director
- Pramod Kasat, in the position of Independent Director
- Sirisha Chintapalli, in the position of Independent Director
- Kunisetty Venkata Ramakrishna, in the position of Independent Director
- Mohana Durga Rao Chalavad, in the position of Senior Vice President (Operations)
- Venkata Rajesh Annam, in the position of Senior VP (Business Operations)
- Rachamadugu Balaji Bharadwaj, in the position of Senior VP (IT & E-Commerce)
- Konduri Venkata Lakshmi Narasimha Sarma, in the position of Chief Financial Officer
- Chakradhar Boorlagadda, in the position of Head of Sourcing & Strategy
- Matte Koti Bhaskara Teja, in the position of Company Secretary and Compliance Officer
Is Sai Silks Good for Investment?
Fashion is the talk of the town all the time. There is barely any person who can escape the temptation of beautiful ethnic clothes representing a rich heritage and culture.
The company has a strong presence in South India with six retail brands. They presently have 12 retail outlets offering Women, Men, and Kids apparel.
Made with top quality raw materials to offer the best value for money with wholesome products in different styles.
Sai Silks Financial Statements
| Amount (in INR & Million) | |||
| 31-Mar-23 | 31-Mar-22 | Mar-21 | |
| Assets | 12,204.50 | 8,424.87 | 6,654.24 |
| Revenue | 13,589.20 | 11,330.16 | 6,790.95 |
| Expense | 12,253.51 | 10,557.30 | 6,717.87 |
| Profit After Tax | 966.73 | 576.87 | 51.31 |
After the big pandemic hit in 2020, the revenue of Sai Silks was diminished to almost half, but now it has again gained strength and reflected a lofty revenue figure.
The total revenue of the company in 2023, 2022, and 2021 was – Rs. 13,589.20 million, Rs. 11,330.16 million, and Rs. 6,790.95 million, respectively.
The company has maintained a profitable record in the past years. The profit of the company in 2023, 2022, and 2021 was – Rs. 966.73 million, Rs. 576.87 million, and Rs. 51.31 million, respectively.
| Earnings per Equity Share (in Million) | |||
| 31-Mar-23 | 31-Mar-22 | Mar-21 | |
| Basic & Diluted | 8.11 | 4.79 | 0.43 |
The EPS of Sai Silks also went up and down in the past three years. As on March 2021, the EPS stood at Rs. 0.43, which came down to Rs. 4.79 in March 2022. By the end of the financial year 2023, the EPS rose to Rs. 8.11.
Sai Silks IPO Review
Sai Silks IPO is going to be a mix of Fresh share issue and Offer for sale. The Fresh Issue will be for Rs. 600 crores and Share Sale will be of 18,048,440 Equity Shares.
The Promoter selling shareholders are Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi. The Promoter Group Selling Shareholders are – Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam, and Venkata Rajesh Annam.
The selling shareholders entitles to the proceeds from the Offer for Sale and the company will receive fresh issue proceeds.
Sai Silks will be funding the capital expenditure of 25 new stores and 2 warehouses with the raised money. Further, it will also apply the funds towards working capital requirements, and payments towards debt availed by the company.
Sai Silks IPO Details
Here are a few more details you need to know before investing in Sai Silks IPO –
Sai Silks IPO Issue Object
The Sai Silks has proposed diverse objectives for making the IPO offer and some of the objectives are:
- Funding capital expenditure towards setting-up of 25 new stores (“New Stores”);
- Funding capital expenditure towards setting up of two warehouses;
- Funding working capital requirements of our Company;
- Repayment or pre-payment, in full or part, of certain borrowings availed by our Company; and
- General corporate purposes.
Sai Silks IPO – Basis of Offer Price
The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.
Qualitative factors are:
- Among the leading ethnic and value-fashion retail companies in south India having a portfolio of established formats with focused sales and marketing strategy.
- Leading ethnic wear retail brand in India with a scalable model, which is well positioned to leverage growth in the ethnic and value-fashion apparel industry in India.
- Strong presence in the offline and online marketplace with an omni-channel network.
- Track record of growth, profitability and unit economics with an efficient operating model.
- Experienced Promoter, management and in-house teams with proven execution capabilities.
Quantitative factors are:
| Basic & Diluted EPS | RONW (%) | NAV (Rs.) | |
| 31-Mar-23 | 8.11 | 24.56 | 33.02 |
| 31-Mar-22 | 4.79 | 19.19 | – |
| Mar-21 | 0.43 | 2.11 | – |
Sai Silks IPO Lead Managers
Here is the list of Lead managers –
- Motilal Oswal Investment Advisors Limited
- Edelweiss Financial Services Limited
- HDFC Bank Limited
Sai Silks IPO Registrar to offer
Check out the details of the registrar here –
Bigshare Services Private Limited
Office No S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali Caves Road,
Andheri (East) Mumbai – 400093
Telephone: 022 62638200
E-mail: ipo@bigshareonline.com
Investor Grievance e-mail: investor@bigshareonline.com
Website: www.bigshareonline.com
Contact Person: Jibu John
SEBI Registration No.: INR000001385
Sai Silks IPO – Other Details
- Statutory Auditor – M/s Sagar & Associates
- Legal Counsel to the Company – J. Sagar Associates
- Bankers to the Company – Canara Bank, HDFC Bank Limited, IDBI Bank Limited, and State Bank of India
Sai Silks IPO – Conclusion
The Sai Silks IPO is filled with immense opportunities for the company. They will be able to fund and maintain their operational efficiency with working capital. Further, with their plan to open new stores, they will be able to expand into new areas and emerge in the market strongly.
The company will lower its debt liability through the IPO proceeds and attain a better debt-equity ratio. The share capital of the company is going to increase with the issue of new equity shares.
The Sai Silks IPO can be a good add-on to your portfolio given the increasing growth and demand in the apparel sector and the growth of the company.
To Subscribe to Sai Silks IPO – Open Demat Account Now!
Sai Silks IPO Review FAQs
Check out the FAQs on Sai Silks IPO –
What is the Issue Size of Sai Silks IPO?
The Company is making an initial public offer of 54,099,027 equity shares. They vividly portray the aspects of the issue in this article. You can check the stats on the fresh issue, Offer for sale, and net issue.
What is the Price band of Sai Silks IPO?
The price band for this particular IPO ranges between Rs 210 to Rs 222. As far as the face value of the share is concerned, it is Rs.2 per share.
What is the Sai Silks IPO Open Date?
The opening and closing dates for this IPO have been updated. The IPO is set to open on September 20, 2023, while the closing date is set for September 22, 2023.
What is the Sai Silks IPO Allotment Date?
They also have the news regarding the respective allotment dates of this IPO. The basis of Allotment finalization is on September 20, 2023, refund initiation is on September 21, 2023, credit of shares is on October 3, 2023, and share listing date is on October 4, 2023.
What is the Sai Silks IPO Listing Date?
Shares of this company shall be listed in the exchanges on October 4, 2023. The date, when the listing would be done, is stagnant on October 4, 2023.
Who is the Registrar of Sai Silks IPO?
One of the reputed registrars is managing the issue of this IPO, i.e. Bigshare Services Private Limited. Their website will help you regarding the further information you are on the lookout for.
Who is the Promoter of Sai Silks IPO?
Here are the promoters of this IPO – Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi. You can refer to the RHP for further information on the promoter. You will find the link to RHP in the article.
What is the GMP of Sai Silks IPO?
They have obtained the GMP of this IPO and it is Rs. X. Further insights into the Kostak rate and subject to sauda or SS are also included in this report.
Is Sai Silks IPO Good for Investment?
They have further provided the financial status of the company in this article, from the past few years.
You can refer to the same, and also check the line of operations they are into and then decide to invest in the IPO.
What is the PAT of Sai Silks Company?
They have the information on company financials, and according to that, they have the figures from the last few years to provide. PAT for the financial year 2023 in Million is 576.87, 2022 is 51.31, and 2021 is 420.96.
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