Mumbai: The initial public offer (IPO) of apparel retailer Sai Silks (Kalamandir) was subscribed 50% on the first day of issue on Monday.
The Rs.89 crore IPO of Sai Silks received bids for 62.98 lakh shares against 1.27 crore shares on offer, translating into 50% subscription till 1700 hours on Monday, as per data available on the NSE.
The company, primarily into women’s ethnic wear business, is aiming to garner Rs.89 crore with the IPO shares in the price band of Rs.70-75 apiece. The issue would close on 13 February.
The proceeds from the share sale would be utilized for setting-up retail outlets, brand promotion activities, term loan repayment and meeting working capital requirements.
The shares are proposed to be listed on the BSE and the National Stock Exchange.
The book-running lead managers to the issue are Ashika Capital Ltd and Vivro Financial Services Pvt Ltd.
The Hyderabad-based company would offer a safety net scheme to its prospective retail investors for six months after the close of the issue.
Under the safety net scheme, if the market value of the shares falls below the issue price at any time during scheme period, promoters would buyback shares at the sale price from original allottees. However, the buyback would be subject to a maximum of 1,000 equity shares per allottee.