Sai Silks share price gains over 8% post tepid listing. Should you buy, sell or hold?

Sai Silks Kalamandir IPO listing today: Sai Silks Kalamandir shares were listed on the bourses with modest premium today. On the NSE, Sai Silks Kalamandir share price opened at ₹231 per share, 4.1% higher than the issue price of ₹222, and on the BSE, Sai Silks Kalamandir share price was listed at ₹230 per share.

Sai Silks Kalamandir share price touched intraday high of ₹243.90 and low of ₹230.95, on NSE today. At 11:45 IST, Sai Silks share price were trading at ₹241.65 apiece, up 4.61%. 

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According to market experts, the business was not quite understood by the people and the response appeared to be muted over the first two days of subscription.

“Sai Silks had an above par listing and better than expected performance. The stock is trading currently at ₹241, a gain of ₹19 or 9% higher. I believe, the business and company needs to demonstrate the growth going forward if they want the public to participate in their shares very actively,” said Kris Arun Kejriwal, Founder, Kejriwal Research and Investment Services an advisory firm.

Sai Silks IPO comprised of 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.

Also Read: Sai Silks Kalamandir share price debuts at a mere 4% premium at ₹231 on NSE

Sai Silks IPO share price outlook

According to Shivani Nyati, Head of Wealth of Swastika Investmart Ltd, in the long term, the company has the potential to grow its business, given its strong brand presence, expanding footprint, and focus on online sales. However, investors should be aware of the risks associated with the company, such as the competitive nature of the industry and the impact of economic downturns on consumer spending. Thus, cautious investors may consider exiting their position, but investors with a long-term view may hold it by keeping a stoploss.

Avinash Gorakshakar, Head Research of Profitmart Securities said that the listing price of ₹231 was expected. The industry in which the company operates is very competitive and therefore growth opportunity is limited although south market is good, expansion in North India market looks tough.

"It will be better to watch the companies results going ahead and then take a call here. As on date no fresh investment is suggested here," advised Gorakshakar.

According to Mahesh M. Ojha, AVP – Research and Business Development, Hensex Securities Pvt Ltd, Sai Silks (Kalamandir) Limited is among the leading ethnic and value-fashion retail company in south India. 

On debut, the IPO surged 8.5% . Considering the company’s scalable model positioned to leverage growth, Strong presence in offline and online marketplace with an omni-channel network, track record of growth, profitability, and unit economics with an efficient operating model. 

“We suggest investors to Book at least 50% Profits on the listing day itself, rest can be kept for Long term investment perspective,”advised Ojha.

Also Read: Signature Global makes decent Dalal Street debut; shares list with 15.5% premium at ₹445 apiece on BSE

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.