Sai Silks Kalamandir’s IPO is all set for its debut, with the offering scheduled to open on September 20th and conclude on September 22nd. This IPO aims to raise approximately ₹1201 crores. It consists of a fresh issue of ₹600 crores and an offer for sale of up to 27,072,000 equity shares, each with a face value of ₹2.
In terms of allocation, 35% is reserved for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net Worth Individuals (HNIs).
About Sai Silks
Sai Silks (Kalamandir), established in 2005, specializes in offering a wide range of high-quality sarees suitable for various occasions, including weddings, parties, and everyday wear. They also provide lehengas, men’s ethnic wear, children’s ethnic wear, and value fashion products, including fusion and western wear for women, men, and children.
Sai Silks operates four different store formats:
- Kalamandir: This format caters to the middle-income segment and offers contemporary ethnic fashion. It includes a variety of sarees like Tusser, Silk, Kota, Kora, Khadi, Georgette, Cotton, and Matka.
- VaraMahalakshmi Silks: Here, the focus is on premium ethnic silk sarees and handlooms, primarily targeting wedding and occasional wear. They offer sarees such as Banarasi, Patola, Kota, Kanchipuram, Paithani, Organza, Kuppadam, with a strong emphasis on handloom Kancheepuram silk sarees.
- Mandir: This format caters to high net worth individuals and offers ultra-premium designer sarees. The collection includes designer sarees like Banarasi, Patola, Ikat, Kanchipuram, Paithani, Organza, and Kuppadam.
- KLM Fashion Mall: This store offers affordable value fashion products, including fusion wear, daily wear sarees, and western wear for women, men, and children.
As of May 31, 2022, the company operates more than 46 stores across four South Indian states: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, with a total retail space of 550,815 square feet. In terms of financial performance, the company reported revenue from operations of INR 1,129.32 crore in FY 2022, INR 677.25 crore in FY 2021, and INR 1,175.56 crore in FY 2020. The EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased from INR 103.71 crore in FY 2020 to INR 133.05 crore in FY 2022, with the EBITDA Margin rising from 8.82% in FY 2020 to 11.78% in FY 2022.
| Parameter | Details |
| Sai Silks IPO Dates | September 20 – September 22, 2023 |
| Sai Silks IPO Price | INR 210 – INR 222 per share |
| Fresh Issue | INR 600 crore |
| Offer For Sale | 27,072,000 shares |
| INR 568.51 – INR 601 crore | |
| Total IPO Size | INR 1,168.51 – INR 1,201 crore |
| Minimum Bid (Lot Size) | 67 shares |
| INR 14,874 | |
| Face Value | INR 2 per share |
| Retail Allocation | 35% |
| Listing On | BSE, NSE |
| Retail Quota | 35% |
| QIB Quota | 50% |
| NII Quota | 15% |
| Discount | N/A |
| DRHP Draft Prospectus | Link |
| RHP Draft Prospectus |
Sai Silks Kalamandir IPO Allotment & Listing Dates
| Event | Date |
|---|---|
| IPO Open Date | September 20, 2023 |
| IPO Close Date | September 22, 2023 |
| Basis of Allotment Date | September 27, 2023 |
| Initiation of Refunds | September 29, 2023 |
| Credit of Shares to Demat Account | October 03, 2023 |
| IPO Listing Date | October 04, 2023 |
| Cut-off time for UPI mandate confirmation | 5 PM on September 22, 2023 |
Sai Silks (Kalamandir) IPO – Lots Size & Price
| Application | Lots (Min) | Lots (Max) | Shares (Min) | Shares (Max) | Amount (Min) |
| Retail | 1 | 13 | 67 | 871 | ₹14,874 |
| S-HNI | 14 | 67 | 938 | 4,489 | ₹2,08,236 |
| B-HNI | 68 | – | 4,556 | – | ₹10,11,432 |
Competitive Strengths:
- Leading Market Presence: Sai Silks (Kalamandir) is one of the prominent ethnic and value-fashion retail companies in South India. It boasts a diverse portfolio of established formats, supported by a focused sales and marketing strategy.
- Ethnic Wear Leader: The company holds a strong position as a leading ethnic wear retail brand in India. Its scalable business model positions it well to capitalize on the growth potential within the ethnic and value-fashion apparel industry in India.
- Omni-channel Presence: Sai Silks has a robust presence both in the offline and online marketplace. It has effectively implemented an omni-channel network to reach a wider customer base.
- Proven Track Record: The company has a commendable track record of consistent growth, profitability, and favorable unit economics. This success is underpinned by an efficient operating model.
- Experienced Management: Sai Silks benefits from an experienced set of promoters, management, and in-house teams with a demonstrated track record of successful execution.
Company Promoters:
- Nagakanaka Durga Prasad Chalavadi
- Jhansi Rani Chalavadi
The promoter holding for Sai Silks (Kalamandir) IPO is as follows:
- Pre-Issue Shareholding: 95.24%
- Post-Issue Shareholding: 60.80%
The objectives of the issue are as follows:
- Setting up of Retail Outlets: The funds raised from the IPO will be used to establish new retail outlets.
- Expenses for Brand Promotion: Part of the proceeds will be allocated towards brand promotion expenses to enhance market visibility and recognition.
- Pre-payment of Term Loan Facility: The company plans to use a portion of the funds to pre-pay its existing term loan facility.
- Meeting Long-Term Working Capital Requirement: The IPO funds will be utilized to meet long-term working capital requirements, ensuring smooth business operations.
- General Corporate Purposes: Some of the proceeds will be allocated for general corporate purposes, which may include various operational needs.
- Issue Expenses: A portion of the funds will cover the expenses associated with the IPO itself.
Sai Silks Kalamandir Company Financial Report
| Metric | FY 2020 | FY 2021 | FY 2022 | FY 2023 |
|---|---|---|---|---|
| Earnings Per Share | 3.59 | 0.43 | 4.79 | 8.11 |
| PE Ratio | – | – | – | 25.89 – 27.37 |
| Return on Net Worth (RONW) (%) | 18.18 | 2.11 | 19.19 | 24.56 |
| Net Asset Value (NAV) | – | – | 24.99 | 33.02 |
| Return on Capital Employed (ROCE) (%) | 24.39 | 8.51 | 21.71 | 23.55 |
| EBITDA Margin (%) | 8.82 | 9.21 | 11.78 | 9.21 |
| Debt to Equity Ratio | 0.71 | 0.89 | 0.87 | 0.89 |
Peer group of Sai Silks (Kalamandir)
- Vedant Fashions Limited
- TCNS Clothing Co. Limited
- Go Fashion (India) Limited
- Aditya Birla Fashion and Retail Limited
- Shoppers Stop Limited
- Trent Limited
| Role | Name | Address | Phone | Website | |
|---|---|---|---|---|---|
| Lead Manager | MOTILAL OSWAL INVESTMENT ADVISORS LIMITED | Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai- 400 025, Maharashtra, India | +91 22 7193 4380 | sskl.ipo@motilaloswal.com | www.motilaloswalgroup.com |
| Registrar | BIGSHARE SERVICES PRIVATE LIMITED | S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri East, Mumbai – 400 093 | +91 22 6263 8200 | ipo@bigshareonline.com | www.bigshareonline.com |
| Sai Silks (Kalamandir) Contact | SAI SILKS (KALAMANDIR) LIMITED | 6-3-790/8, Flat No. 1, Bathina Apartments, Ameerpet, Hyderabad 500 016, Telangana, India | +91 40 6656 6555 | secretarial@sskl.co.in | www.sskl.co.in |
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