Sai Silks Kalamandir’s initial public offering (IPO), founded by Nagakanaka Durga Prasad Chalavadi, received a favorable response from investors on the final day of bidding, which was September 22.
The IPO was subscribed 4.34 times, with bids for 16.69 crore equity shares against an offer size of 3.84 crore shares, according to subscription data available on the exchanges.
Qualified institutional buyers and high net worth individuals showed strong support for the issue on the closing day, bidding 12.35 times and 2.47 times the allotted quota, which is 50 percent and 15 percent of the issue size, respectively.
In contrast, retail investors displayed less enthusiasm for the offer, subscribing to 75 percent of the shares reserved for them, representing 35 percent of the total offer.
Sai Silks Kalamandir’s Rs 1,201-crore public issue had a subscription rate of 33 percent until September 20-21.
The IPO of this Andhra Pradesh-based company, which offers ethnic apparel products including various types of ultra-premium and premium sarees, consists of a fresh issuance of shares worth Rs 600 crore and an offer-for-sale (OFS) of shares worth Rs 601 crore by the promoters. The price band for the offer is set at Rs 210-222 per share.
On September 18, a day before the issue opened, Sai Silks Kalamandir secured Rs 360 crore from several anchor investors, including HSBC, Societe Generale, BNP Paribas Arbitrage, Citigroup, ICICI Prudential Mutual Fund, SBI Mutual Fund, Abakkus Growth Fund, and HDFC Mutual Fund.
The basis of allotment for IPO shares will be finalized by Sai Silks in consultation with the BSE, the designated stock exchange, by the end of September 27. The equity shares will be credited to the demat accounts of successful investors by October 3. Refunds (if any, for Anchor Investors) or unblocking of funds from ASBA accounts will occur by the end of September 29.
The trading in Sai Silks’ equity shares is scheduled to commence on October 4, following the IPO schedule. However, please note that considering the new timeline of T+3 (issue closing date + three working days) for listing equity shares, the scheduled listing date for Sai Silks shares may change. The market regulator, SEBI, has made the T+3 listing timeline voluntary for IPOs opening with effect from September 1 and mandatory for IPOs launching from December 1, 2023.
