Sai Silks Kalamandir Limited IPO

SSKL IPO in Feb-2023 – Subscribe? – Know the risk factors

Sai Silks Kalamandir Limited IPO

Sai Silks Kalamandir Limited IPO Date Price GMP

Sai Silks Kalamandir limited IPO (SSKL) – The company filed a DRHP document for an INR 1200 crore of initial public offering. The offer consists of fresh issue of INR 600 crores and 18,048,440 Equity Shares offer for sale (OFS). Sai Silks Kalamandir is one of the most coveted ethnic fashion brands in South India. The company has nine stores spread across Telangana, Andhra Pradesh, & Karnataka and planning to expand across India. The brands of Kalamandir cater to customers across all market segments that include premium ethnic fashion, ethnic fashion for the middle income, and value fashion. Among the above brands, Sai Silks (Kalamandir) Limited’ has four types of store formats.

  • Kalamandir,
  • VaraMahalakshmi Silks
  • Mandir
  • KLM Fashion Mall

Read the complete company insights in the article – “Sai Silks (Kalamandir) Limited”

 Sai Silks Kalamandir Limited IPO – Financial Analysis

Total revenue was severely impacted by the spread of COVID-19 followed by lock down in FY 2021. The total income has declined from INR 1179.6 Crores in FY 2020 to INR 679.1 Crores in FY 2021. However, the total income again reached the pre-covid level of INR 1133 Crores in FY 2022. Profit after tax has increased from INR 42.1 Crores in FY 2020 to INR 57.1 Crores in FY 2022 which is a growth of CAGR of 35% between the Fiscals 2020 and 2022.

 Read complete Financial Analysis and Valuation – “Sai Silks (Kalamandir) Limited”.

Sai Silks Kalamandir Limited IPO pricing and issue size

Sai Silks Kalamandir Limited filed DRHP for INR 600 crores of fresh issue and offer for sale (OFS) up to 18,048,440 Equity Shares by the Promoter and selling shareholders at a face value of INR 2 each. Initial promoters such as Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi are selling a majority of their stake of up to 6,410,005 Equity Shares and up to 7,949,520 Equity Shares respectively.

Book Running Lead Managers and registrar of this IPO are

  • Motilal Oswal Investment Advisors Limited
  • Edelweiss Financial Services Limited
  • HDFC Bank Limited
  • The registrar for this IPO is Bigshare Services Private Limited. 

Share Reservations among QIBS (Qualified Institutional Buyers), NIBS (Non-Institutional Bidders), AND RIBS (Retail Individual Bidders)

  • No more than 50% of the Offer is available for the QIB portion
  • The company may allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis
  • 5% of the Net QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only
  • No less than 15% of the Offer will be allocated to NIBs
  • Not less than 35% of the Net Offer shall be available for allocation to retail individual bidders (RIBs)

Utilization of Net Proceeds from Sai Silks Kalamandir Limited IPO

The company will not receive any amount from the offer for sale. However, Sai Silks Kalamandir Limited is proposing below to utilize the net proceeds from the fresh issue of the IPO.

  • Funding capital expenditure towards setting up 25 new stores. INR 122.59 Crores is allocated to this purpose.
  • The company also proposes to set up two warehouses. The total expenditure proposed for this purpose is INR 25.4 Crores.
  • Approximately INR 236 Crores is proposed to meet the working capital of the company.
  • The company will also repay or pre-pay INR 60 crores to reduce its outstanding borrowings. The company had total outstanding borrowings of INR 260 crores as of June 15, 2022.

Related Reading on company insights Prasol Chemicals Limited, Concord Biotech Limited, Sah Polymers Company

Risk Factors in Investing in Sai Silks Kalamandir Limited upcoming IPO

  • Sai Silks Kalamandir Limited is concentrated in South India only. Any natural or unnatural events in South India may affect the company.
  • The business is highly concentrated on the sale of women’s sarees and is vulnerable to variations in demand and changes in consumer preference.
  • The high Debt-to-Equity ratio and low EPS and low net cash flow from operation.
  • Low entry barrier to this business. Any other company with a high pocket can open stores and give strong competition.
  • Competitors are well established both online and offline. Competing with established players in states other than South India will be difficult.
  • Finally, the demand for these products is vulnerable to any economic slowdown.

Do you Invest in Sai Silks Kalamandir Limited IPO?

  • Sai Silks Kalamandir Limited has significantly expanded it’s business and scale of operations with 25 stores opening.
  • The company is also planning to expand its operation into other states.
  • However, the company does not have strong financial performance in terms of ROE, ROCE, net profit, EPS, etc. over the years.
  • There is huge competition and the business is mostly seasonal.
  • I prefer to avoid Sai Silks Kalamandir Limited IPO.
  • However, the valuation of Sai Silks Kalamandir Limited IPO remains to see before investing.

Sai Silks Kalamandir Limited upcoming IPO

sai silks kalamandir limited ipo date price gmpIPO details
Sai Silks Kalamandir Limited IPO Subscription DatesFeb 11, 2023 to Feb 13, 2023
Sai Silks Kalamandir Limited IPO Listing DateComing soon
Sai Silks Kalamandir Limited IPO Price Band₹70 to ₹75 per share
Fresh Issue₹600 Crores
Offer for sale18,048,440 Equity Shares
Equity Shares outstanding before the Issue126,339,085 Equity Shares
Minimum bid (lot size)
Retail Investors
1 lot (200 shares)
Maximum bid (lot size)
Retail Investors
13 lots (2600 shares)
Face Value₹2 Per Equity Share
Listed onBSE & NSE

Sai silks kalamandir website and Leadmanagers

Contact DetailsLead Managers
6-3-790/8, Flat No. 1
Bathina Apartments, Ameerpet
Hyderabad 500 016
Telangana, India
Telephone: +91 40 6656 6555
1. Motilal Oswal Investment Advisors
2. Edelweiss Financial Services Limited
3. HDFC Bank Limited

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SSKL IPO Allotment Status

 SSKL IPO allotment will be available on  Bigshare Services Private Limited’s website. To know your allotment status, get ready with your PAN number and click on this link.

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