The highly anticipated initial public offering (IPO) of Sai Silks Kalamandir – a Telangana bssed ethnic apparel retailer is set to open for subscription today on September 20, 2023. Ahead of the IPO : the company has already garnered significant interest, raising Rs 360 crore from 26 anchor investors. This IPO consists of a fresh issuance of shares worth Rs 600 crore by the company and an offer for sale (OFS) of 2.7 crore equity shares worth Rs 601 crore by the promoter group. Here are ten key things investors should know before considering participation in this IPO.

Sai Silk Kalamandir IPO Date, Price Review All You need To Know

Sai Silk Kalamandir IPO Date, Price Review All You need To Know

The subscription window for Sai Silks Kalamandir’s IPO opens today i.e , September 20, 2023 and this will remain open until September 22, 2023. Investors have a limited time frame to make their decisions. The company’s IPO has already attracted substantial interest from anchor investors who have collectively invested Rs 360 crore. This indicates confidence in Sai Silks Kalamandir’s perspectives.

Investors may be attracted to this IPO due to the potential of growth, the  potential in the ethnic apparel sector  especially in the regions where cultural attire holds significance. With a limited subscription window investors should carefully assess their investment decisions and consider their risk tolerance and financial goals. It’s crucial to understand how the funds raised through the IPO will be utilized by the company. Investors should review the prospectus for this information.

Like every other investments that are made, this IPO too carries certain risks. Investors should be aware of these risks, which may be considered and only then a decision must be made.

Fresh Issuance and OFS

The IPO is a combination of fresh issuance of shares, raising capital for the company, and an offer for sale by the promoter group. The fresh issuance amounts to Rs 600 crore while the OFS is valued at Rs 601 crore.

Sai Silks Kalamandir’s IPO is the ninth to launch in the current month which is definitely reflecting the robust IPO market in India.

Telangana Based Ethnic Apparel Retailer

Sai Silks Kalamandir is known for its diverse range of ethnic apparel which is catering to the fashion needs of customers in Telangana and beyond.

In the fiscal year 2022, Sai Silks Kalamandir solidified its position as one of South India’s top 10 ethnic apparel retailers, with impressive revenues and post-tax profits. This success has led analysts to recommend subscribing to the company’s IPO, citing its robust competitive edge in the women’s ethnic wear segment and a track record of strong margins and returns.

Reliance Securities expressed confidence in the company’s growth prospects, emphasizing the expectation of continued expansion and positive performance metrics due to store expansions in the coming years. As a result, they recommended subscribing to the IPO.

The IPO itself consists of a fresh issue of equity shares valued at up to Rs 600 crore, accompanied by an offer for sale of up to 2.7 crore shares by selling shareholders, totaling Rs 1,201 crore. The IPO price range has been set at Rs 210-222 per share, with a minimum bidding requirement of 67 shares in one lot.

Should You Invest In Sai Silk Kalamandir IPO?

In the context of the broader Indian apparel market, women’s apparel holds a significant share, contributing approximately 37% of the total apparel market in FY22, amounting to Rs 1.53 lakh crore. This segment is expected to maintain a robust Compound Annual Growth Rate (CAGR) of 21.1% over the next five years, reaching an estimated Rs 3.98 lakh crore by FY27.

Sai Silks Kalamandir caters to various market segments through its four distinct store formats: Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall. This strategy encompasses premium ethnic fashion, ethnic fashion for middle-income customers, and value-oriented fashion.

The company’s future plans include a strategic expansion of its store network across South India, aiming to retain its leadership position in the women’s ethnic wear market, particularly in sarees.

Ventura Securities commended the company’s business strategy, highlighting its effective use of IT infrastructure to enhance operational efficiencies, scale, and productivity. They recommended a “Subscribe” rating. For the financial year ending March 2023, Sai Silks Kalamandir reported impressive results, with a 20% YoY increase in revenues, reaching Rs 1351 crore, and a remarkable 69% YoY surge in net profits, totaling Rs 97.6 crore.


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