The company Sai Silk Kalamandir is coming up with an IPO of INR 1,201.01 crores. The offer consists of a fresh issue of equity shares at a price band of INR 210-222 per share.The offer consists of a fresh issue of equity shares and an offer to sell shares of existing shareholders. The company intends to utilise the raised funds to open new stores, warehouses, meeting working capital requirements and to repay the borrowings of the company.
Sai Silks Kalamandir Limited IPO – Important Details
| Sai Silk Kalamandir IPO Date | September 20, 2023 to September 22, 2023 |
| Sai Silk Kalamandir IPO Listing Date | September 27, 2023 |
| Sai Silk Kalamandir IPO Price | INR 210 to INR 222 per share |
| Sai Silk Kalamandir IPO Lot Size | 67 Shares |
| Sai Silk Kalamandir IPO Total Issue Size | INR 1,201 crores |
| Sai Silk Kalamandir IPO Basis of Allotment | September 27, 2023 |
| Sai Silk Kalamandir IPO Initiation of Refunds | September 29, 2023 |
| Sai Silk Kalamandir IPO Credit of Shares to Demat | October 3, 2023 |
| Sai Silk Kalamandir IPO Issue Type | Book Built Issue IPO |
| Sai Silk Kalamandir IPO Listing At | BSE,NSE |
Sai Silks Kalamandir Limited IPO – Company Profile
The company is amongst the top 10 retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit. Through the four store formats, i.e., Kalamandir, VaraMahalakshmi Silks, Mandir and KLM Fashion Mall, the company offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion, with a variety of products across different price points, thereby catering to customers across all market segments.
The company leverages its store network of 54 stores, to focus on spreading India’s vibrant culture, traditions and heritage by offering a diverse range of products which includes various types of ultra-premium and premium sarees suitable for weddings, party wear, as well as occasional and daily wear.
Sai Silks Kalamandir Ltd IPO Objective
- Setting up 30 new stores: In order to support the growth strategy, the company intends to leverage its experience to expand the operations by opening new stores such that it offers us potential for better market share gains, increased brand recognition and economies of scale. For the purpose of setting up 30 new stores, the company intends to utilise INR 125.08 crores from the net proceeds.
- Setting up 2 warehouses: The company on the basis its experience, sample warehouses currently operational and historical costs, among other things, has proposed to utilise a portion of the Net Proceeds, i.e., ₹ 25.39 crores towards setting-up the two new warehouses in Hyderabad, Telangana and Chennai, Tamil Nadu.
- Funding working capital requirements: Additional working capital is planned to maintain this inventory which may enable us to achieve the growth targets and serve the customers on a consistent timeline. For the said purpose the company plans to utilise INR 280.06 crores.
- Repayment or prepayment, of certain borrowings: The company has entered into various financing arrangements with banks and financial institutions. The loan facilities availed by the Company includes borrowing in the form of, inter alia, term loans, vehicle loan and other fund-based working capital loans. As at July 31, 2023, the total outstanding borrowings amounted to ₹ 3,57.02 crores. The company proposes to utilise an estimated amount of ₹ 50.00 crores from the Net Proceeds towards full or partial repayment of certain borrowings.
Sai Silks Kalamandir IPO Risks And Challenges
The business heavily relies on women’s saree sales, making it susceptible to demand fluctuations and consumer trends. Promoter’s pledged shares pose shareholding dilution risk. Shifting consumer preference to e-commerce may adversely affect the business.
- The business is highly concentrated on the sale of women’s sarees and is vulnerable to variations in demand and changes in consumer preference, could have an adverse effect on the business, results of operations and financial condition.
- The promoter has pledged certain of his equity shares and entered into agreement for the pledge of shares with certain lenders. Any exercise of such pledge by the lender or enforcement of such pledge could dilute the shareholding of these promoters, which may adversely affect the business and future prospects.
- Change in customer preferences to purchase products from traditional brick and mortar stores to e-commerce may have an adverse impact on the business, results of operations and financial condition.
Sai Silks Kalamandir Limited IPO Peer Comparison
| Company | Total Income (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Sai Silks (Kalamandir) Limited(Standalone) | 13,589.20 | 2 | – | 8.11 | 8.11 | 24.56% | 33.02 |
| Vedant Fashions Limited(Consolidated) | 13,951.71 | 1 | 71.29 | 17.68 | 17.68 | 30.65% | 57.66 |
| TCNS Clothing Co. Limited(Standalone) | 12,175.98 | 2 | NA | (2.75) | (2.75) | NA | 99.10 |
| Go Fashion (India) Limited(Standalone) | 6,771.94 | 10 | 87.74 | 15.33 | 15.33 | 15.91% | 96.36 |
| Aditya Birla Fashion and Retail Limited(Consolidated) | 125,343.60 | 10 | NA | (0.38) | (0.38) | NA | 35.24 |
| Shoppers Stop Limited (Consolidated) | 40,788.60 | 5 | 69.34 | 10.59 | 10.51 | 56.30% | 18.79 |
| Trent Limited(Consolidated) | 85,025.40 | 1 | 163.76 | 12.51 | 12.51 | 14.78% | 74.91 |
NA-means not applicable since the numerator or denominator is a negative number
Sai Silks Kalamandir Limited IPO Financial Information
| Particular | As at 31 March 2021 | As at 31 March 2022 | As at 31 March 2023 |
| Revenue (₹ in millions) | 6,772.48 | 11,293.23 | 13,514.69 |
| Equity (₹ in millions) | 2,429.90 | 3,006.61 | 3,973.34 |
| Expenses (₹ in millions) | 6,717.87 | 10,557.30 | 12,253.51 |
| Profit and Loss After Tax (₹ in millions) | 51.31 | 576.87 | 975.88 |
| RoNW (%) | 2.11% | 19.19% | 24.56% |
| Diluted EPS only (₹) | 0.43 | 4.79 | 8.11 |
| NAV per Equity Share (₹) | 20.19 | 24.99 | 33.02 |
| Total Assets (in millions) | 6,654.24 | 8,424.87 | 12,204.50 |
| Total Liabilities (in millions) | 9,642.60 | 5,418.26 | 8,231.16 |
Sai Silks Kalamandir Ltd IPO – Industry & Market Potential
India has one of the youngest populations globally compared to other leading economies. The median age in India was estimated to be 28.7 years for Fiscal 2022.A younger consumer class absorbs and interprets fashion trends faster, has a higher tendency towards discretionary spend and is also more digitally connected and exposed than their counterparts were in the past.
Currently, the Retail Market in India was valued at US$ 951 billion (₹ 76,06,572 crore) in Fiscal 2023 and is expected to grow at a CAGR of 13.8% to reach US$ 1,417 billion (₹ 1,13,39,918 crore) by Fiscal 2027.
Sai Silks Kalamandir IPO – Type of Offer
The company plans to raise INR 600 crores through a fresh share issue for expansion and debt repayment. Existing shareholders will sell INR 601 crores worth of their stake.
● Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 600 crores. This fund will be utilised to open new stores, warehouses, meeting working capital requirements and to repay the borrowings of the company.
● Offer for sale: Existing shareholders, including promoters and early investors, will sell a portion of their stake in the company worth INR 601 crores.
Sai Silks Kalamandir Limited IPO Offer Size
Sai Silk Kalamandir is launching an IPO valued at INR 1,201.01 crores, including a fresh equity share issuance priced between INR 210 and INR 222 per share. The funds will be used for expanding stores, warehouses, working capital, and repaying company debts.
Sai Silks Kalamandir Limited IPO Allotment Structure
Valiant Laboratories Ltd IPO Allotment Structure
SEBI regulations allocate IPO shares as follows: 50% for Qualified Institutional Buyers (QIBs), 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs. 2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs. 2 lakhs.
How to apply for a Sai Silks Kalamandir Limited IPO?
To apply for the Sai Silks Kalamandir IPO through Alice Blue, you would typically follow these steps:
1. Open a Demat and Trading Account: If you don’t have one already, you would need to open a Demat and trading account with Alice Blue.
2. Check for IPO Details: Once your account is active, you can check for the Sai Silks Kalamandir IPO details in the IPO section of the Alice Blue platform.
3. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
4. Submit the Application: Confirm all your details and submit your application.
You can apply for Sai Silks Kalamandir IPO at Alice Blue in just a few clicks!
Check Allotment Status: Post the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How to Check Sai Silks Kalamandir IPO Allotment Status on Alice Blue?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or their trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Sai Silks Kalamandir IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Sai Silks Kalamandir IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, it’s recommended to contact Alice Blue’s customer support for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Sai Silks Kalamandir IPO:
1. Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Sai Silks Kalamandir IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN and application number or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
2. NSE and BSE: You can also check the allotment status on the official websites of the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after the allotment process has been completed, a few days after the IPO window closes.
Sai Silks Kalamandir IPO Offer Registrar
The registrar for the Sai Silk Kalamandir Limited’s IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
Bigshare Services Private Limited
Telephone: +91 22 6263 8200
E-mail: [email protected]
Sai Silks Kalamandir IPO FAQs
1. What is the allotment date of the Sai Silks Kalamandir Limited IPO?
The allotment date of the Sai Silks Kalamandir Limited IPO is 27th September 2023.
2. What is the price band of Sai Silks Kalamandir Limited IPO?
The price band of Sai Silks Kalamandir Limited IPO is INR 210 to 222 per share.
3. What is the size of the Sai Silks Kalamandir Limited IPO?
Sai Silk Kalamandir is launching an IPO valued at INR 1,201.01 crores, including a fresh equity share issuance priced between INR 210 and INR 222 per share. The funds will be used for expanding stores, warehouses, working capital, and repaying company debts.
4. What is the listing date of the Sai Silks Kalamandir Limited IPO?
The listing date of the Sai Silks Kalamandir Limited IPO is 27th September 2023
