The Sai Silks Kalamandir IPO is now open for subscription, starting on Wednesday, September 20, and concluding on Friday, September 22. The company has set a price range of ₹210 to ₹222 per equity share, with a face value of ₹2 per share. Sai Silks raised over ₹360 crore from anchor investors on Monday, September 18.
The IPO has allocated 50% of the shares for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Investors. The lot size for Sai Silks IPO is 67 equity shares, with multiples of 67 equity shares thereafter.
Listed industry peers of the company include Vedant Fashions Ltd (P/E ratio of 71.29), Go Fashion (India) Ltd (P/E ratio of 87.74), Aditya Birla Fashion and Retail Ltd, Trent Ltd (P/E ratio of 163.76), and Shoppers Stop Ltd (P/E ratio of 69.34).
Prasad Chalavadi, Promoter, Founder, and MD of Sai Silks, shared insights about the IPO and the company’s future plans. He mentioned that the company’s strategy is to grow using a cluster model. The payback period for new stores, including inventory, is expected to be 16-17 months. Despite the current debt levels of ₹300 crore, they aim to repay only ₹50 crore.
The Sai Silks IPO includes a fresh issuance of ₹600 crore worth of shares and an offer for sale (OFS) of up to 2.70 crore equity shares by the promoter and promoter group. The net proceeds from the offering will be used for various purposes, including capital expenditures for setting up 30 additional stores and two warehouses, working capital needs, debt repayment, and general corporate purposes.
As of the latest reports, the Sai Silks IPO GMP (Grey Market Premium) is +7, indicating that the shares are trading at a premium of ₹7 in the grey market. This suggests that the estimated listing price for Sai Silks Kalamandir shares is ₹229 apiece, which is 3.15% higher than the IPO price of ₹222. It’s worth noting that the grey market premium can change over time and may vary from day to day.
In summary, Sai Silks Kalamandir’s IPO is generating investor interest with a positive grey market premium, and the company has outlined plans for growth and utilization of the IPO proceeds.
