BackSai Silks Kalamandir IPO opens today: GMP, review, other key details. Should you subscribe?
Sai Silks Kalamandir IPO opens today, with a price band of ₹210-222 per share. The IPO will close on September 22.
PremiumSai Silks Kalamandir IPO opens for subscription today (Wednesday, September 20), and will close on Friday, September 22. The company has set the price band in the range between ₹210 to ₹222 per equity share of face value of ₹2 each. Sai Silks IPO raised over ₹360 crore from anchor investors on Monday, September 18.
Sai Silks Kalamandir IPO has reserved not more than 50% of the shares in the public issue for Qualified Institutional Buyers (QIB), not less than 15% for Non Institutional Investors (NII), and not less than 35% of the offer is reserved for Retail Investors.
Sai Silks IPO lot size is 67 equity shares and in multiples of 67 equity shares thereafter.
The company's listed industry peers are Vedant Fashions Ltd (P/E ratio of 71.29), Go Fashion (India) Ltd(P/E ratio of 87.74), Aditya Birla Fashion and Retail Ltd, Trent Ltd ((P/E ratio of 163.76), and Shoppers Stop Ltd (P/E ratio of 69.34).
In an interview with CNBC-TV 18, Prasad Chalavadi, Promoter, Founder and MD of Sai Silks, while discussing about the IPO, future plans of the company said, “Strategy for the company is to grow in a cluster model. Payback period for new stores along with inventory will be 16-17 months. Current debt levels at ₹300 crore, want to repay only ₹50 crore."
Sai Silks Kalamandir IPO details
Sai Silks IPO comprises a fresh issuance of ₹600 crore worth of shares and an offer for sale (OFS) of up to 2.70 crore equity shares by promoter and promter group.
The company intends to use the net proceeds from the offering to finance capital expenditures for the establishment of 30 additional stores and two warehouses, as well as for working capital needs, debt repayment, and general corporate purposes.
Motilal Oswal Investment Advisors Ltd, HDFC Bank Ltd, Nuvama Wealth Management Ltd are the book running lead managers to the offer. Bigshare Services Private Ltd is the offer's registrar.
In the year 2005, Sai Silk was incorporated. They rank among South India's top 10 ethnic clothing merchants in terms of revenue and profit after tax for the fiscal years FY21, FY22, and FY23. Lehengas, men's ethnic wear, children's ethnic wear, as well as value fashion products that include fusion wear and western wear for women, men, and children are just a few of the products that Sai Silk offers. These products are suitable for weddings, parties, as well as occasional and daily wear.
Sai Silks Kalamandir IPO review
Reliance Securities Ltd believes that given its high client demands and intricate inventory management, the Indian ethnic wear industry is challenging to replicate. Nowadays, it is fashionable to wear ethnic clothing for occasions and celebrations other than weddings, such as national festivals and other special events.
The supply chain and inventory management are system driven and algorithmically handled throughout the full supply and distribution chain, with production occurring both internally and through third parties.
“Sai Silks Kalamandir 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 Sai Silks Kalamandir a strong competitive advantage in the women’s ethnic wear, strong margins and returns profile over the past few years, we expect consistent growth in its key metrics through its store expansion over the next few years, we recommend a SUBSCRIBE to the issue," the brokerage said.
According to Dilip Davda, the contributing editor at at Chittorgarh.com, after unsuccessful try for its maiden IPO in February 2013, the company has emerged one of the top 10 retailers in ethnic wares with major focus on sarees.
"After suffering a bit due to COVID impact till FY22, it has reported good numbers for FY23, indicating prospects ahead with additional new stores. Based on FY23 earnings, the issue appears fully priced. Well-informed investors may park funds for medium to long term rewards," added Dilip.
Sai Silks Kalamandir IPO GMP today
Sai Silks IPO GMP today or grey market premium is +7 similar to the previous two trading session. This indicates Sai Silks Kalamandir share price were trading at a premium of ₹7 in the grey market on Wednesday, according to topsharebrokers.com
Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sai Silks Kalamandir share price is ₹229 apiece, which is 3.15% higher than the IPO price of ₹222.
Sai Silks Kalamandir IPO GMP on Sunday was ₹0, which meant shares were trading at their issue price of ₹222 with no premium or discount in the grey market according to topsharebrokers.com
'Grey market premium' indicates investors' readiness to pay more than the issue price.
Also Read: Sai Silks Kalamandir IPO to open on September 20
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