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Hyderabad-based ethnic retailer, Sai Silks (Kalamandir), has initiated its preliminary public providing (IPO) course of on Wednesday. The subscription interval will final till September 22. Generally known as one of many high ten South Indian retailers in ethnic attire, significantly sarees, the corporate’s IPO features a contemporary concern of fairness shares value as much as Rs 600 crore and a proposal on the market of as much as 2.7 crore shares by promoting shareholders, amounting to Rs 1,201 crore (Rs 1 crore = $120,409).
The value band for the IPO has been set at Rs 210-222 ($1 = Rs 83.05) per share, with a minimal bid dimension of 67 shares in a single lot. The allotment foundation is predicted to be finalized on September 27 and subsequently, Sai Silks’ shares are deliberate to be listed on each the Bombay Inventory Trade and Nationwide Inventory Trade on October 4.
At the moment, Sai Silks’ shares are buying and selling on the gray market at a premium of Rs 7. The corporate operates by means of 4 retailer codecs—Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Trend Mall—catering to completely different market segments resembling premium ethnic vogue, middle-income group ethnic vogue, and value-fashion.
Market specialists have inspired buyers to subscribe to the IPO attributable to Sai Silks’ stable aggressive stance within the girls’s ethnic put on sector. The corporate has constantly proven sturdy margins and a lovely return profile over latest years. They anticipate continued progress in key efficiency metrics as the corporate plans to broaden its retailer community.
Sai Silks is acknowledged as a number one ethnic put on and value-fashion retail enterprise in southern India with a portfolio of established codecs. It is also identified for its vital presence in each offline and on-line marketplaces by means of an omni-channel community and a historical past of progress, profitability, and environment friendly working mannequin.
Ventura Securities additionally emphasised the corporate’s efficient use of IT infrastructure to reinforce operational efficiencies, scale, and productiveness.
Sai Silks has an bold progress technique to increase its retailer community in South India whereas preserving its market management in girls’s ethnic put on, significantly sarees. For the monetary yr ending in March 2023, the corporate reported a 20% year-on-year income improve to Rs 1,351 crore, together with a exceptional 69% YoY surge in web revenue to Rs 97.6 crore.
Motilal Oswal Funding Advisors, HDFC Financial institution, and Nuvama Wealth Administration have been appointed because the book-running lead managers for the IPO.
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