sai silks: Sai Silks files preliminary IPO documents with Sebi; eyes up to Rs 1,200 cr

Ethnic clothing retailer Sai Silks (Kalamandir) Limited has filed preliminary documents with financial market regulator Sebi to raise up to Rs 1,200 crore through an initial public offering (IPO). The IPO includes a new issue of Capital Shares worth Rs 600 crore and an offer for sale of up to 18,048,440 Capital Shares by Promoters and Promoter Group entities, according to the Red Diversion Prospectus Project (DRHP).

The net proceeds from the new issue will be used for the establishment of 25 new stores, the establishment of two warehouses, support for working capital needs, payment of debt and general corporate purposes.

According to market sources, the issue size is expected to be Rs 1,200 crore.

Investment Advisors, and are the lead bookkeeping managers for the issue.

The shares are proposed to be listed on the BSE Limited and the National Stock Exchange (India) Limited.

Sai Silks is one of the leading retailers of ethnic clothing, especially sarees, in South India in terms of revenue and after-tax profit for fiscal years 2019, 2020 and 2021.

Through its four store formats – Kalamandir, VaraMahalakshmi Silks, Mandir and KLM Fashion Mall – the company offers products to various market segments, including high-end ethnic fashion, middle-income ethnic fashion and economy fashion.

As of May 31, 2022, the company operated 46 stores in four major

States – Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.