Sai Silk Kalamandir IPO

Sai Silk Kalamandir Limited is among the biggest ethnic clothing stores in south India, especially for sarees, in terms of revenues and profit after tax for the fiscal years 2019 through 2021. (Source: Technopak Report). Sai Silk Kalamandir IPO will hit the stock market in November 2022.

About Sai Silk Kalamandir

With a variety of products at different price ranges, they cater to clients in all market segments through their four store formats, which include Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.

They offer their products to various market segments through these stores, including premium ethnic fashion, ethnic fashion for middle-class consumers, and value-fashion.

They use their 46-store network as of May 31, 2022, to spread awareness of India’s vibrant culture, traditions, and heritage by providing a wide range of products, such as lehengas, men’s and children’s ethnic wear, and value fashion items, such as fusion wear and western clothing for adults, children, and teenagers. Sarees come in a variety of styles that are suitable for weddings, parties, & casual wear.

Business

From 14% in Fiscal 2007 to 32% in Fiscal 2020, organized retailing’s share of the apparel market expanded. The market’s current stage of development shows a clear segregation of structured retail channels for clothing.

The category leaders in the various groupings of western (formal and casual), Indian, and athleisure are also emerging during this time.

In the past, unorganized operators in tiny format stores with only a few number of organized players controlled the ethnic retail trade of sarees. (Referring to Technopak Report)

Sai Silk Kalamandir Limited has began operations in 2005 when their founders realized the opportunity and filled the market’s void. They currently have one of the most varied selections of saree SKUs among Indian women’s clothing manufacturers.

Brands

Their managing director, Nagakanaka Durga Prasad Chalavadi, a first-generation entrepreneur, created the company.

They started their business in 2005 with a 3,213 square foot “Kalamandir” store in Hyderabad, Telangana, & over the years they have grown to 46 stores across four south Indian states, namely Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, with a combined area of roughly 550,815 square feet as of May 31, 2022.

The average store size for their Kalamandir format stores as of May 31, 2022 was 12,811 square feet, 3,400 square feet for their Mandir format stores, 5,972 square feet for their VaraMahalakshmi format stores, and 18,700 square feet for their KLM Fashion Mall format stores. This information was calculated based on Their currently operating stores.

Sai Silk Kalamandir IPO

Sai Silk Kalamandir Limited, headquartered in Telangana has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 600 Crore and 18,048,440 equity shares on 21 July 2022.

The offer includes a fresh issue of INR 600 Crore and there is offer for sale (OFS) of 18,048,440 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
		31-Mar-22	31-Mar-21	31-Mar-20
Total Assets		842.49	665.42	692.76
Total Revenue		1,133.02	679.10	1178.62
Profit After Tax		57.69	5.13	42.10

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2020	3.59	3.59	3
Financial Year 2021	0.43	0.43	2
Financial Year 2022	4.79	4.79	1
Weighted Average	3.14	3.14

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel that the following qualitative factors & business strengths enable them to compete successfully in the industry, and that these factors will be used to calculate the offer price:

• One of the top ethnic and value-fashion retailers in South India, with a portfolio of well-known formats and a targeted sales and marketing approach.
• The leading ethnic wear retail brand in India has a scalable business model and is well-positioned to capitalize on the expansion of the country’s ethnic and value-fashion apparel markets.
• Strong omni-channel network and presence in both the retail and online markets.
• Growth, profitability, and unit economics track record with an effective operational model.
• Promoter, management, and internal teams with demonstrated execution skills.

Sai Silk Kalamandir Peer Comparison

S. No.	Face Value	Company Name	PE
1	1	Vedant Fashions Limited	84.55
2	2	TCNS Clothing Co. Limited	N/A
3	10	Go Fashion (India) Limited	148.46
4	10	Aditya Birla Fashion and Retail Limited	N/A
5	5	Shoppers Stop  Limited	N/A
6	1	Trent Limited	405.17

1. All financial data for listed industry peers is on a standalone/consolidated basis and comes from the audited consolidated/standalone financial statements of the respective firms for the year ending March 31, 2021, which can be found on the Stock Exchanges’ websites.
2. The P/E ratio is calculated by dividing the closing market price of equity shares on the NSE on July 11, 2022 by the diluted EPS derived from the peer group company’s annual report for the year ended March 31, 2021.

Sai Silk Kalamandir IPO Details

IPO Opening Date	November 2022
IPO Closing Date	November 2022
Issue Type	Book Building
Face Value	2 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	25,546,186 equity shares
Fresh Issue	600 Crore
Offer for Sale	18,048,440 equity shares

Sai Silk Kalamandir IPO Date

Sai Silk Kalamandir Limited IPO opening date is November 2022, and the closing date is November 2022. The Sai Silk Kalamandir issue may list in November 2022.

IPO Opening Date	November 2022
IPO Closing Date	November 2022
Basis of Allotment Date	November 2022
Initiation of Refunds	November 2022
Credit of Shares to Demat Account	November 2022
IPO Listing Date	November 2022

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	50	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	35	Minimum 1 lot based on availability

Sai Silk Kalamandir India Limited IPO Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Sai Silk Kalamandir IPO.

Sai Silk Kalamandir IPO GMP

Sai Silk Kalamandir Limited IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
November 2022
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Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Sai Silk Kalamandir Limited IPO Review

Sai Silk Kalamandir Limited IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Sai Silk Kalamandir IPO is good or bad.

Sai Silk Kalamandir Limited IPO Risk

• Since the majority of their business is devoted to the selling of women’s sarees, fluctuations in demand and shifts in customer preferences could have a negative impact on their operations.
• Their business, strategy, business, operations, and future financial performance could all suffer from their inability to promote their goods effectively or from any degradation in the public’s impression of their brands.
• Their current locations for their stores can lose their appeal, and suitable new locations might not be available at all, let alone at a price or on conditions they can live with.
• The COVID-19 pandemic’s current and ongoing effects have a negative influence on their company prospects, strategy, operations, future financial results, and the value of their equity shares.

Other Threats

1. The Proforma Financial Statements presented in this Draft Red Herring Prospectus do not represent the company’s actual results of operations or financial condition.
2. Their operations, financial state, and business could all suffer if they can’t keep their inventory at a healthy level.
3. The Offer’s objectives include supporting our Company’s working capital needs, which are based on a number of assumptions and estimations and may not accurately reflect their company’s real needs.
4. Their success, which depends on their capacity to recruit and keep qualified staff, depends on the caliber and consistency of the customer service provided at their stores.
5. They might experience labor unrest, slowdowns, and rising wage costs, all of which could hurt their firm, operations, cash flow & financial condition.

Sai Silk Kalamandir Limited IPO Brokerage views

Once the dates will be announced we will update the views of different brokerage firms regarding this IPO. Here is the views of different stock brokers regarding this Sai Silk Kalamandir IPO:

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Sai Silk Kalamandir Limited IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
November 2022	1
November 2022	2
November 2022	3

Sai Silk Kalamandir Limited Management

Their business started operating in 2005, & Nagakanaka Durga Prasad Chalavadi, their managing director, has more than 16 years of expertise in the retail industry.

He has played a key role in the development of their numerous forms & their operational effectiveness. Additionally, they have a strong senior management group with a lot of retail and fashion industry experience, which puts them in a good position to take advantage of any future growth prospects.

Their three warehouses in Karnataka, Andhra Pradesh, and Telangana, with a combined area of about 162,000 square feet, as of May 31, 2022, & a designated storage space located at one of their stores in Chennai, Tamil Nadu, manage their inventory, logistics, as well as their whole supply chain.

Sai Silk Kalamandir Limited‘ Promoters

• Nagakanaka Durga Prasad Chalavadi
• Jhansi Rani Chalavadi

Principal Shareholder’s Holding

Pre Issue Share Holding	54.16%
Post Issue Share Holding

Sai Silk Kalamandir Limited Prospectus