Sai Silks Kalamandir IPO Opens for Subscription: Key Details

Sai Silks Kalamandir IPO Opens for Subscription: Key Details. Image/Mint

IPO Subscription Period

The Sai Silks Kalamandir IPO subscription period commenced on Wednesday, September 20, and is set to conclude on Friday, September 22, providing investors a limited window to participate.

Price Band and Anchor Investor Funding

Sai Silks Kalamandir has fixed the price band for its IPO in the range of ₹210 to ₹222 per equity share, with a face value of ₹2 per share. The IPO garnered significant interest from anchor investors, raising over ₹360 crore on September 18.

Allocation for Different Investor Categories

The allocation of shares in the IPO has been divided among various investor categories. Notably, not more than 50% of the shares are reserved for Qualified Institutional Buyers (QIBs), not less than 15% for Non-Institutional Investors (NIIs), and not less than 35% is earmarked for Retail Investors.

Lot Size and Multiples

The lot size for the Sai Silks IPO is 67 equity shares, with subsequent multiples of 67 equity shares for additional subscriptions.

Peer Comparison

The company’s industry peers that are already listed include Vedant Fashions Ltd, Go Fashion (India) Ltd, Aditya Birla Fashion and Retail Ltd, Trent Ltd, and Shoppers Stop Ltd, each with its own price-to-earnings (P/E) ratio.

Utilization of IPO Proceeds

Sai Silks Kalamandir plans to utilize the net proceeds from the IPO for various purposes, including financing capital expenditures for establishing 30 additional stores and two warehouses, working capital needs, debt repayment, and general corporate purposes.

Lead Managers and Registrar

Motilal Oswal Investment Advisors Ltd, HDFC Bank Ltd, and Nuvama Wealth Management Ltd are the book running lead managers for the IPO, while Bigshare Services Private Ltd is the registrar.

Expert Opinions

Reliance Securities Ltd views the Indian ethnic wear industry as challenging to replicate due to high client demands and intricate inventory management. The company aims to enhance brand recall through various marketing initiatives, which is expected to provide it with a competitive advantage. They recommend subscribing to the issue.

Dilip Davda, contributing editor at Chittorgarh.com, suggests that Sai Silks Kalamandir has emerged as one of the top 10 retailers in ethnic wear, particularly sarees. While the issue appears fully priced based on FY23 earnings, well-informed investors may consider the IPO for medium to long-term rewards.

Grey Market Premium (GMP)

As of the latest update, Sai Silks Kalamandir IPO’s grey market premium (GMP) stands at +7. This suggests that the IPO shares are trading at a premium of ₹7 in the grey market. Considering the upper end of the price band and the current GMP, the estimated listing price for Sai Silks Kalamandir shares is ₹229, which is approximately 3.15% higher than the IPO price of ₹222.

Investors should exercise caution and conduct their due diligence before participating in the IPO, taking into consideration their investment objectives and risk tolerance.