Sai Silks: Up 35% from IPO price in just two months, should you buy this newly listed stock?
Sai Silks (Kalamandir) has been seeing strong investor interest, rising almost 35 percent from its issue price in just 2 months. In a recent note, domestic brokerage house HDFC Securities has initiated coverage on the stock with a ‘buy’ recommendation and a target price of ₹385, indicating an upside of 29 percent from its current market price of ₹298.75, as on November 24. The bullish call is on the back of strong financial performance, a robust track record, and a healthy growth potential in the saree industry.
The ₹1,201 crore initial public offering (IPO) was open for subscription between September 20 and September 22 with a price range of ₹210-222. The issue included a fresh share sale of ₹600 crore and an offer for sale (OFS) of up to 2.70 crore equity shares by its promoter group shareholders. The issue was overall subscribed to 4.47 times.
The qualified institutional bidders' (QIBs) allocation was booked 12.17 times, while the portion for non-institutional investors was subscribed to 2.54 times. However, the quota reserved for retail investors saw only 91 percent bidding. The stock was listed on September 27, 2023, at ₹231 on the NSE, a 4 percent premium to the issue price.
From its listing price, the stock has advanced over 29 percent till date. Soon after listing, the stock witnessed some profit booking. However, it has shown tremendous recovery in November so far.
It has surged over 25 percent just in November after a 5.6 percent fall in October. The stock hit its record high of ₹302.40 in the previous session (November 24, 2023). Launched in FY05, Sai Silks (Kalamandir) Ltd (SSKL) is one of the largest apparel retailers in south India, offering products across ethnic wear (predominantly sarees) and value
. Read more on livemint.com
