Sai Silks (Kalamandir) likely to file draft papers for Rs 1,000-1,200 crore IPO soon

Sai Silk (Kalamandir)
July 22, 2022

Mumbai Sai Silks (Kalamandir), a Hyderabad- grounded vesture retailer, is planning to soon file draft documents with the Securities and Exchange Board of India( Sebi) for an original public immolation, said bankers in the know. The company plans to raise 1,000- 1,200 crore through the share trade, they said.

Motilal Oswal Financial, Edelweiss NSE 0.61% and HDFC Bank NSE 2.41% have been appointed as the bankers for the IPO. Dispatch queries transferred to Sai Silks, Motilal Oswal, Edelweiss, and HDFC Bank went unanswered

The company intends to use the IPO proceeds to expand, said bankers. According to a recent note by CARE Rating, Sai Silks had a network of 45 retail outlets across South India as of September 30, 2021. Sai Silks’ flagship brand Kalamandir has stores in Telangana, Andhra Pradesh, and Karnataka.

In the once time or so, colorful fashion retailers have raised plutocrat through IPOs. In February, the festivity wear and tear company Vedant Fashions NSE-0.19% went public to raise Rs3,149 crore, while Go Fashion NSE 0.85% raised about Rs1,014 crores last November. Fab India has got a Sebi nod to go ahead with its Rs 4,000 crore IPO.

Sai Silks derives utmost of its profit from women’s garments, contributing around 80% of deals.

In February 2013, the company tried to enter the primary request by furnishing a safety net scheme for retail investors but had to withdraw from the IPO.

The company’s total operating income increased by 13%, from Rs 1,045 crores in FY19 to Rs 1,177 crores in FY20. It declined to Rs 679 crore in FY21 due to the Covid- led lockdown. The company posted an operating income of Rs. 450 crores in the first half of FY22 with a gross profit of around Rs. 49 crores, as per CARE Conditions NSE 0.35%.

The company is awaiting a steady growth in deals from all its stores in the alternate half of FY22, backed by jubilee and marriage season during the period, as per CARE Conditions.

Sai Silk (Kalamandir)

Incorporated in 2005, Sai Silks (Kalamandir) Ltd is in the business of merchandising of sarees under the brand name of Kalamandir, Mandir and Varmahalakshmi. Company has a substantially presence in south India with network of 12 retail outlets. Sai Silks (Kalamandir) substantially concentrate on Women s Ethnical wear and tear.

Company’s ranges of products are

1. Sarees

2. Women’s dress accoutrements

3. Men’s wear and tear

4. Sprat’s wear and tear

5. Gold Jewellery & Silver Jewellery

Presently, they vend different kinds of sarees for different occasions and ready- made apparels for women, men and kiddies in their retail outlets. Trade of gold jewellery in their retail outlets under ballot model with its group concern Sai Swarnamandir Jewellers Private Limited(” SSJPL”)

Objects of the Issue

1. Setting up of Retail Outlets;

2. Charges to be incurred for Brand Promotion;

3. Pre-payment of Term Loan installation;

4. Meeting Long Term Working Capital Requirement;

5. General Corporate Purposes; and

6. Issue Charges.