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The IPO comprises a fresh issue of equity shares worth up to Rs 600 crore and an offer for sale (OFS) of up to 2.70 crore equity shares by promoters and promoter group shareholders. The Hyderabad-based saree retailer seeks to raise Rs 1,201 crore ($144.7 million) from its primary offering. Bidding for anchor investors will commence on Monday, September 18.
Promoters Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi, along with other promoter group investors including Dhanalakshmi Perumalla, Doodeswara Kanaka Durgarao Chalavadi, Kalyan Srinivas Annam, Subash Chandra Mohan Annam, and Venkata Rajesh Annam will participate in the OFS. These shareholders acquired their stake in the range of Rs 1.17-19.81 per share.
Proceeds from the fresh issue will be allocated towards funding capital expenditure for setting up 25 new stores and two warehouses, meeting working capital requirements, repaying or pre-paying certain borrowings, and general corporate purposes. Meanwhile, proceeds from the OFS will go to the selling shareholders.
As of July 31, Sai Silks (Kalamandir) operated 54 stores across four south Indian states: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. The company also offers products through e-commerce channels, including its website and other online marketplaces.
For the fiscal year ended on March 31, Sai Silks (Kalamandir) reported a net profit of Rs 97.59 crore with revenue from operations at Rs 1,358.92 crore. The previous fiscal year saw a net profit of Rs 57.69 crore and revenue from operations at Rs 1,133.02 crore.
The company has reserved 50% of the net offer for qualified institutional bidders (QIBs), 15% for non-institutional investors (NIIs), and 35% for retail investors. Motilal Oswal Investment Advisors, HDFC Bank, and Nuvama Wealth Management are the book-running lead managers to the issue, while Bigshare Services has been appointed as registrar to the issue. Shares of the company will be listed on the mainboard of both BSE and NSE.
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