Sai Silks Kalamandir IPO Opens Today: Check Latest GMP, Price Band Here; Should You Subscribe To The Issue?

The three-day initial public offering (IPO)M of Sai Silks Kalamandir has opened for subscription today. The public issue will remain open for bidding till September 22 (Friday). The price band of Sai Silks has been set in the range between Rs 210 to Rs 222 per equity share of a face value of Rs 2 each. Ahead of the IPO launch, the ethnic apparel retailer has raised over Rs 360.30 crore from 26 anchor investors on Monday (September 18).

The offer comprises a fresh issuance of shares worth Rs 600 crore by the company and an offer-for-sale (OFS) of 2.70 core equity shares by the promoter group. The ethnic apparel retailer is looking to raise Rs 1,201 crore from the public issue.

Nagakanaka Durga Prasad Chalavadi-founded company said that out of the total allocation of shares to anchor investors, 1,17,24,694 shares were allocated to 8 domestic mutual funds via a total of 16 schemes.

The company has reserved not more than 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.

The company intends to utilize net fresh issue proceeds for setting up new stores, and warehouses, and for working capital requirements. Sai Silks is also expected to repay its Rs 50 crore debts via issue proceeds.

Sai Silks IPO Review:

Analysts have recommended investors to subscribe to the issue as the company has a robust competitive advantage in the women's ethnic wear segment. The Hyderabad-based saree retailer also boasts of strong margins and return profile over the last few years.
The company has reported a healthy financial performance in the past years. For the financial year ended March 2023, the company's revenues rose 20% year-on-year (YoY) to Rs 1351 crore, while its net profit grew 69% YoY to Rs 97.6 crore. The company's revenue from operations during the same period rose 19.7% to Rs 1,351.5 crore in FY23. EBITDA in FY23 jumped 60% to Rs 212.5 crore with a margin expansion of 394 basis points (bps) at 15.72%, compared to the previous year.

Reliance Securities believes that given the high client demands and intricate inventory management, the Indian ethnic wear industry is challenging to replicate. The brokerage said, "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 women apparel market contributed nearly 37% of the total apparel market of India in FY22 and is estimated at Rs 1.53 lakh crore. This market is estimated to reach Rs 3.98 lakh crore by FY27.

Sai Silks IPO GMP today

According to topsharebrokers.com, Sai Silks IPO grey market premium (GMP) today is +7 similar to the last two trading sessions. This suggests that Sai Silks Kalamandir shares were trading at a premium of Rs 7 in the grey market today.

Given the upper end of Sai Silks IPO price band at Rs 222 and the current premium in the grey market Sai Silks Kalamandir shares are expected to be listed at Rs 229 a piece, up 3.15% compared to the IPO price band.

Sai Silks IPO Lot Size:

Investors can bid for a minimum of 67 shares in one lot and in multiples thereof. The minimum amount of investment required by retail investors is Rs 14,874. The minimum lot size investment for sNII is 14 lots, and for B-HNI is 68 lots.