Sai Silks Kalamandir IPO Lists with Premium

Sai Silks Kalamandir IPO Lists with Premium

VoM News Desk | September 27, 2023 | 12:12 PM IST | Breaking News | Follow on Google News

Sai Silks Kalamandir IPO Lists with Premium

Sai Silks Kalamandir’s initial public offering (IPO) made a successful debut on the stock exchanges, with its share price listing at a premium. The IPO had garnered significant investor interest during its subscription period.

Listing at a Premium

On the National Stock Exchange (NSE), Sai Silks Kalamandir’s share price was listed at ₹231 per share, reflecting a 4.1% premium over the issue price of ₹222. Similarly, on the Bombay Stock Exchange (BSE), the share price of Sai Silks Kalamandir was listed at ₹230 per share.

Successful Subscription Period

The Sai Silks Kalamandir IPO had opened for subscription from Wednesday, September 20, to Friday, September 22. During this period, the subscription status indicated strong demand, with an overall subscription of 4.40 times.

Specifically, the IPO saw robust participation from different investor segments. The retail investors’ portion was subscribed 88%, while the Non-Institutional Investors (NII) portion saw a subscription of 2.47 times. The Qualified Institutional Buyers (QIB) portion garnered significant interest and was fully subscribed, reaching a subscription level of 12.35 times.

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IPO Details and Utilization of Proceeds

The Sai Silks IPO consisted of a fresh issuance of ₹600 crore worth of shares and an offer for sale (OFS) of up to 2.70 crore equity shares by the promoter and promoter group. The company intends to utilize the net proceeds from the IPO for various purposes, including funding capital expenditures for the establishment of 30 additional stores and two warehouses. Additionally, the funds will be used for working capital requirements, debt repayment, and general corporate purposes.

Key Players in the Offering

Motilal Oswal Investment Advisors Ltd, HDFC Bank Ltd, and Nuvama Wealth Management Ltd played significant roles as the book running lead managers for the IPO. Bigshare Services Private Ltd acted as the registrar for the offering.

Grey Market Premium (GMP) Analysis

The grey market premium (GMP) for Sai Silks Kalamandir IPO remained at +8, similar to the previous trading session. This indicated that shares of Sai Silks Kalamandir were trading at a premium of ₹8 in the grey market on the day of listing.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Sai Silks Kalamandir shares was ₹230 apiece. This represented a 3.6% increase over the IPO price of ₹222.

It’s worth noting that on Sunday, September 17, the GMP for Sai Silks Kalamandir IPO was ₹0, indicating that shares were trading at their issue price of ₹222 with no premium or discount in the grey market. The GMP can fluctuate and reflects investors’ willingness to pay above the IPO price for the shares. The range for GMP can vary from ₹0 to ₹14, with higher values signifying stronger demand and a larger premium.

VoM News Desk

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