Hyderabad-based saree retailer Sai Silks' IPO to open on September 20
IPO) of Sai Silks (Kalamandir) Ltd will open for public subscription on September 20 and close on September 22.
The bidding for anchor investors will open on September 18.
The issue of the Hyderabad-based saree retailer comprises fresh release of equity shares up to Rs 600 crore and an offer for sale of up to 2.7 crore by selling shareholders.
The company proposes to utilise net proceeds of the fresh issue towards funding capital expenditure for setting up 30 new stores, two warehouses, working capital requirements, repayment of debt and other general corporate purposes.
Sai Silks is amongst the top 10 retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit after tax in FY22.
Through its four store formats — Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall — it offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion.
As of July, 2023, it operated 54 stores in four major south Indian states Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, with an aggregate area of approximately 603,414 square feet.
For the financial year ended March, 2023, the company reported a total revenue of Rs 1351 crore with a net profit at Rs 97.6 crore.
The women apparel market contributes approximately 37% of the total apparel market of India in FY22 and is estimated at Rs 1.53 lakh crore and the same is expected to grow at a CAGR of 21.1% for the next 5 years to reach Rs 3.98 lakh crore by FY27.
Motilal Oswal Investment Advisors, HDFC Bank and Nuvama Wealth Management are the book running lead managers to the IPO.
