Sai Silks (Kalamandir) IPO will open for subscription from 20 September 2023. The company aims for an issue size of ₹1,201 Cr through this IPO.
Company Overview
| Full name | Sai Silks (Kalamandir) Limited |
| Sector | Retailing |
| Industry | Retailing |
| Company Website | https://sskl.co.in/ |
About Company
Incorporated in 2005, Sai Silks (Kalamandir) offers various types of ultra-premium and premium sarees suitable for weddings, party wear, occasional and daily wear, lehengas, men’s ethnic wear, children’s ethnic wear, and value fashion products comprising fusion wear and western wear for women, men, and children.
Sai Silks has four different format stores:
- Kalamandir: Here it offers contemporary ethnic fashion for the middle income, this includes varieties of sarees, such as Tusser, Silk, Kota, Kora, Khadi, Georgette, Cotton, and Matka.
- VaraMahalakshmi Silks: Here it offers premium ethnic silk sarees and handlooms targeting wedding and occasional wear, such as Banarasi, Patola, Kota, Kanchipuram, Paithani, and Organza, Kuppadam, with a focus on handlooms such as Kacheepuram silk sarees.
- Mandir: Here it offers ultra-premium designer sarees targeting high net worth individuals, such as designer sarees such as Banarasi, Patola, Ikat, Kanchipuram, Paithani, Organza, and Kuppadam.
- KLM Fashion Mall: Here it offers value fashion at affordable price points, such as fusion wear, sarees for daily wear, and western wear for women, men, and children.
As of 31 May 2022, the company has over 46 stores in four south Indian states namely Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, with an aggregate area of 550,815 square feet. The company recorded INR 1,129.32 crore, INR 677.25 crore, and INR 1,175.56 crore in revenue from operations in the FY 2022, 2021, and 2020 respectively. The EBITDA has increased from INR 103.71 crore in FY 2020 to INR 133.05 crore in FY 2022, while the EBITDA Margin has increased from 8.82% in FY 2020 to 11.78% in FY 2022.
The Objectives of the Issue
- Funding capital expenditure towards setting up 25 new stores.
- Funding capital expenditure towards setting up of two warehouses.
- Funding the working capital requirements of the company.
- Repayment or pre-payment, in full or part, of certain borrowings availed by the company.
- General corporate purposes.
IPO Timetable
| IPO Opening date | 20 September 2023 |
| IPO Closing | 22 September 2023 |
| Basis of Allotment | 27 September 2023 |
| Initiation Refund | 29 September 2023 |
| Credit to Demat Account | 03 October 2023 |
| Listing Date | 04 October 2023 |
IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹1,201 Cr – 54,099,027 shares |
| Fresh Issue | ₹600 Cr – 27,027,027 shares |
| Offer for sale | ₹601 Cr – 27,072,000 shares |
| Face value | ₹02 per share |
| Price Band | ₹210 to ₹222 per share |
| Lot size | 67 Shares |
| Shareholding pre issue | 126,339,085 |
| Shareholding post issue | 153,366,112 |
| Listing Exchange | BSE & NSE |
IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 67 | ₹14,874 |
| Retail (Max) | 13 | 871 | ₹193,362 |
| S-HNI (Min) | 14 | 938 | ₹208,236 |
| S-HNI (Max) | 67 | 4,489 | ₹996,558 |
| B-HNI (Min) | 68 | 4,556 | ₹1,011,432 |
Reservation Details
| QIB Shares Offered | 50% |
| NII (HNI) Shares Offered | 15% |
| Retail Shares Offered | 35% |
Financial Performance
| FY 2020 | FY 2021 | FY 2022 | FY 2023 | |
| Revenue | 1,175.56 | 677.25 | 1,129.32 | 1,351.46 |
| Expenses | 1,125.24 | 671.79 | 1,055.73 | 1,225.35 |
| Net income | 42.12 | 5.39 | 57.67 | 96.67 |
| Margin (%) | 3.58 | 0.80 | 5.11 | 7.15 |
Valuations & Margins
| FY 2020 | FY 2021 | FY 2022 | FY 2023 | |
| EPS | 3.59 | 0.43 | 4.79 | 8.11 |
| PE ratio | – | – | – | 25.89 – 27.37 |
| RONW (%) | 18.18 | 2.11 | 19.19 | 24.56 |
| NAV | – | – | 24.99 | 33.02 |
| ROCE (%) | 24.39 | 8.51 | 21.71 | 23.55 |
| EBITDA (%) | 8.82 | 9.21 | 11.78 | 9.21 |
| Debt/Equity | 0.71 | 0.89 | 0.87 | 0.89 |
Company Promoters
- Nagakanaka Durga Prasad Chalavadi
- Jhansi Rani Chalavadi.
Promoter Holding
| Pre Issue Share Holding | 95.23% |
| Post Issue Share Holding | 60.80% |
Lead Manager(s)
- Motilal Oswal Investment Advisors Limited
- Hdfc Bank Limited
- Nuvama Wealth Management Limited
IPO Registrar
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali
Caves Road, Andheri East, Mumbai – 400 093
Phone: +91 22 6263 8200
Email: ipo@bigshareonline.com
Website: www.bigshareonline.com
Contact Details
SAI SILKS (KALAMANDIR) LIMITED
6-3-790/8, Flat No. 1, Bathina Apartments,
Ameerpet, Hyderabad 500 016, Telangana, India
Phone: +91 40 6656 6555
Email: secretarial@sskl.co.in
Website: www.sskl.co.in
Allotment Status
Sai Silks (Kalamandir) IPO allotment status will be available on Bigshare Services’ website. Click on this link to get allotment status.
Final thoughts
Sai Silks (Kalamandir) IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
