Sai Silk (Kalamandir) Limited IPO: All you need to know

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Sai Silk (Kalamandir) Limited IPO

Sai Silk (Kalamandir) Limited Limited is offering shares to the public from 20 September 2023 to 22 September 2023. Each share costs between ₹210 and ₹222 and has a face value of ₹2. You can buy a minimum of 67 shares for ₹14,874. They plan to list these shares on 4 October 2023. The total value of this offering is ₹1,201 Crores, which includes a fresh issue worth ₹600 Crores and an offer for sale worth ₹601 Crores.

Sai Silk (Kalamandir) Limited IPO: Business Overview

Founded in 2005, Sai Silks (Kalamandir) Limited sells traditional Indian clothes and trendy outfits.

They are inspired by India's rich culture and offer a variety of products. This includes fancy sarees for events like weddings, everyday sarees, party dresses, and traditional outfits for men and kids. They also have a mix of modern Western-style clothes for women, men, and children.

Sai Silks operates through four distinct store formats, each catering to specific customer preferences and needs:

Kalamandir: This store is tailored for the middle-income group and offers a range of contemporary ethnic fashion. Customers can find a diverse range of sarees including Tusser, Silk, Kota, Kora, Khadi, Georgette, Cotton, and Matka.

VaraMahalakshmi Silks: Specializing in premium silk sarees and handlooms, this store targets those looking for wedding and special occasion wear. Their collection boasts luxurious choices such as Banarasi, Patola, Kota, Kanchipuram, Paithani, Organza, and Kuppadam sarees. Additionally, there's a specific emphasis on handloom varieties like Kanchipuram silk sarees.

Mandir: Targeted toward the elite and high net-worth individuals, Mandir presents an array of ultra-premium designer sarees. The collection includes exquisite pieces like designer Banarasi, Patola, Ikat, Kanchipuram, Paithani, Organza, and Kuppadam sarees.

KLM Fashion Mall: Catering to those seeking value for money, KLM Fashion Mall offers a variety of affordable fashion choices. The store has various fusion wear, everyday sarees, and Western clothing suitable for women, men, and children.

The company also sells its items online through its website and on other shopping websites.

Sai Silk (Kalamandir) Limited IPO Limited IPO: Details

IPO Open and Close DateSep 20, 2023 to Sep 22, 2023
IPO price range₹210 to ₹222 per share
Lot Size67 Shares
IPO size₹1,201Cr
Basis of AllotmentWednesday, 27 September 2023
Credit of Shares to DematTuesday, 3 October 2023
Listing DateWednesday, 4 October 2023

(Source: DRHP)

Sai Silk (Kalamandir) Limited IPO: Reservations

QIB Shares OfferedNot more than 50% of the Net Offer
NII (HNI) Shares OfferedNot less than 15% of the Net Offer
Retail Shares OfferedNot less than 35% of the Offer

(Source: DRHP)

Motilal Oswal Investment Advisors Limited, Edelweiss Financial Services Limited, and HDFC Bank Limited have been appointed as the book-running lead managers for the Sai Silk Limited IPO, while Bigshare Services Private Limited will serve as the registrar to the issue. The shares are expected to be listed on both BSE and NSE, with a tentative listing date of October 4, which falls on a Wednesday.

The Objective of the Issue:

  • The company plans to use the money from the sale for the following purposes:
  • They want to use the money to open 25 new stores.
  • They plan to use the money to build two new warehouses.
  • They want to use the money to cover the company's day-to-day expenses.
  • Repayment or pre-payment, in full or part, of certain borrowings availed by the company.
  • General corporate purposes.

Sai Silk (Kalamandir) Limited  IPO: Financial Performance

ParticularsFY23(in Rs Crores)FY22(in Rs Crores)FY21(in Rs Crores)
Total Revenue1358.921133.01679.09
Profit/Loss After Tax96.6757.675.13
Current Assets804.72560.75409.33
Current Liabilities572.53407.71300.29

(source: RHP)

The Current Assets have increased from ₹ 560.75 Crores in March 2022 to ₹ 804.72 Crores in March 2023, with an increase of 43.50% indicating overall Asset performance.

In terms of revenue, the Company has experienced significant growth in operating revenue resulting in an increase in Total revenue, rising from ₹ 1133.01 Crores in FY22 to ₹ 1358.92 Crores in FY23, with a conspicuous increase of 19.93%. Moreover, Net profits have also seen an increase, going up from ₹ 57.67 Crores in FY22 to ₹ 96.67 Crores in FY23, which has increased by 67.62% over the past year.

Key Performance IndicatorValues
EPS (Rs)8.11
P/E (x)27.37

(Source: DRHP)

Sai Silk (Kalamandir) Limited IPO: Strengths

  • They are one of the top traditional clothing and affordable fashion stores in South India. They have popular store types and a clear sales plan.
  • They are a top clothing brand in India. Their business model can grow easily, and they're ready to take advantage of the increasing demand for traditional and affordable fashion in India.
  • They have a solid presence both in physical stores and online, offering shopping through multiple channels.
  • They have a history of making profits and growing their business efficiently.
  • The company's leaders and teams have a lot of experience and have shown they can get things done well.

Sai Silk (Kalamandir) Limited Peer Comparision

Name of the CompanyRevenue (In Crore)PAT (In Crore)EPS ( in Rs)P/E RatioMcap (In Crore)
Sai Silks (Kalamandir) Limited1358.9296.678.11NANA
Vedant Fashions Limited355.06108.8617.6871.2931,099.53
TCNS Clothing Co. Limited (standalone)272.35-28.12-2.75NA2,413.71
Go Fashion (India) Limited160.1914.7715.3387.747,432.99
Aditya Birla Fashion and Retail Limited2916.13-194.54-0.38NA21,551.05
Shoppers Stop Limited946.8114.2610.5969.347,816.47
Trent Limited2268.0645.0112.51163.7673,180.65

(Source: BSE Results)

(As on 31st, March 2023)