Sai Silks (Kalamandir) Limited IPO (1)
Sai Silks (Kalamandir) is a well-established name in the textile market, especially in south India. The company boasts of over 54 stores across South India, targeting a wide range of customers through their established distribution network. This company was established in 2005 and today it has scaled up its assets to reach a whooping Rs. 1,220 crores.
Sai Silks (Kalamandir) IPO will open for subscription from 20th September 2023 to 22nd September 2023.
Here are all the important details of Sai Silks (Kalamandir) IPO, including issue price, IPO allotment date, GMP, benefits, risks of investing in this IPO, and more.
The key details of Sai Silks (Kalamandir) IPO are as under.
The size of the IPO and different categories of the issue are:
| Category | Details |
| IPO Opening Date | 20th September 2023 |
| IPO Closing Date | 22nd September 2023 |
| Listing | NSE, BSE |
| Issue Type | Book Built Issue IPO |
| Face Value of Shares | Rs. 2 per share |
| IPO Price Band | Rs. 210 – Rs. 222 per share |
| IPO Size | Rs. 1,201 crores |
| Offer for Sale | Rs. 601 crores |
| Fresh Issue | Rs. 600 crores |
The important dates for Sai Silks (Kalamandir) IPO are highlighted below:
| Event | Date |
| Opening date | 20th September 2023 |
| Closing Date | 22nd September 2023 |
| Allotment date | 27th September 2023 |
| Refund Date | 29th September 2023 |
| Share Credit Date | 03rd October 2023 |
| Listing Date | 4th October 2023 |
Investors can subscribe to Sai Silks (Kalamandir) IPO shares in pre-defined lots. The details of the lot sizes for this IPO are mentioned below:
| Category | Details |
| Investments in lots | Minimum – 1 lot Maximum – 13 lots |
| Investment amount | Minimum – Rs. 14,070 – 14,874 Maximum – Rs. 1,93,362 |
| Shares | Minimum – 67 Maximum – 871 |
Here’s the summary of reservation for different applicant categories in this IPO:
| Category of Investor | Reservation Percentage |
| Retail Individual Investor | 10% |
| QIB (Qualified Institutional Buyer) | 75% |
| NII (Non-Institutional Bidders) | 15% |
This IPO is a combination of Offer for Sale and Fresh Issue. The objectives of the IPO are mentioned below:
Sai Silks (Kalamandir) Limited (SSL) is a prominent name in South India’s retail landscape, consistently ranking among the top 10 in ethnic apparel, especially sarees, for Fiscal 2020, 2021, and 2022. With 54 stores across four South Indian states and a retail space covering 603,414 square feet as of July 2023, SSL offers an extensive range of products that cater to a diverse clientele. Their portfolio includes premium sarees for weddings and parties, lehengas, men’s and children’s ethnic wear, fusion and western wear for women, men, and children.
SSL’s success has been instrumental in the growth of the organised retail sector in the apparel market, which has increased from 14% in Fiscal 2007 to 32% in Fiscal 2020. This transformation is especially evident in the ethnic saree category, which was traditionally dominated by unorganised small-format stores. Today, SSL boasts one of India’s most extensive saree collections among women’s apparel brands.
The company began its journey in 2005 with the first Kalamandir store and strategically expanded its footprint within prime city locations. They recognized the importance of online sales during the COVID-19 pandemic and established an omni-channel presence, catering to customers both offline and online.
SSL manages its inventory and supply chain effectively through four warehouses spanning 164,000 square feet in Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu. They prioritise diversity and sustainability in their sourcing practices, collaborating with 4,832 master weavers, weavers, and vendors from across India.
Store Formats:
In addition to their physical stores, SSL extends its reach through e-commerce platforms, providing a comprehensive shopping experience. SSL’s commitment to diversity, sustainability, and a broad product range has solidified its position as a leader in the South Indian ethnic apparel market, with a remarkable revenue of Rs. 1,351 crores as of March 31, 2023, and a customer base of over 5.98 million in India.
Sai Silks (Kalamandir) Ltd’s financials are given in the table below:
| Year | Assets (Rs. in cr) | Revenue from operations (Rs. in cr) | Profit After Tax (Rs. in cr) | Basic EPS | Total Borrowing (Rs. in cr) |
| Mar-2023 | 1,220 | 1,351 | 98 | 8.11 | 345 |
| Mar-2022 | 842 | 1,129 | 58 | 4.79 | 260 |
| Mar-2021 | 665 | 677 | 5 | 4.79 | 217 |
Some of the key strengths of Sai Silks (Kalamandir) IPO that investors can take note of are
| Category | Details |
| Industry presence | Among the leading ethnic wear and value-fashion retail company in south India having a portfolio of established formats with focused sales and marketing strategyTrack record of growth, profitability and unit economics with an efficient operating modelLeading apparel retail brand in India with a scalable model which is well positioned to leverage growth in the ethnic and value-fashion apparel industry in India. |
| Management team | Experienced Promoter, management and in-house teams with proven execution capabilities |
| Business model | Strong presence in offline and online marketplace with an omni-channel networkSSL Leading the Transformation of Ethnic Apparel Retail in South India |
Here are some of the risks that investors of Sai Silks (Kalamandir) IPO should know:
| Category | Details |
| Market risk | Business is highly concentrated on the sale of women’s sarees and is vulnerable to variations in demand and changes in consumer preferenceChange in customer preferences to purchase products from traditional brick and mortar stores to e-commerce may have an adverse impact on the business, results of operations and financial condition |
| Operational risk | The nature of SSL’s business requires it to maintain sufficient inventories resulting in high inventory costs. If it is unable to maintain a level of inventory, its business, results optimal of operations and financial condition may be adversely affected. |
| Regional concentration | Company generated substantially all of their sales from stores located in Southern India and any adverse developments affecting the operations in these regions |
| Business risk | Current locations of SSL’s stores may become unattractive, and suitable new locations may not be available for a reasonable price or acceptable terms, if at allAny downgrade in company’s credit ratings could increase the borrowing costs |
Let’s take a look at the financial performance of Sai Silks (Kalamandir) against its top competitors:
| Particulars | Sai Silks Ltd | Vedant Fashions Ltd | TCNS Clothing Co. Ltd | Go Fashion (India) Ltd | Aditya Birla Fashion and Retail Ltd | Shoppers Stop Ltd | Trent Ltd |
| Revenue from operations (Cr.) | Rs. 1,351 | Rs. 1,355 | Rs. 1,202 | Rs. 665 | Rs. 12,418 | Rs. 4,022 | Rs. 8,242 |
| EBITDA (Cr.) | Rs. 213 | Rs. 671 | Rs. 126 | Rs. 212 | Rs. 1,500 | Rs. 693 | Rs. 1,154 |
| EBITDA margin (%) | 15.7% | 49.5% | 10.5% | 31.9% | 12.1% | 17.2% | 14.0% |
| Profit/Loss (Cr.) | Rs. 98 | Rs. 429 | Rs. (18) | Rs. 83 | Rs. (59) | Rs. 116 | Rs. 394 |
| ROE (%) | 28.0% | 34.6% | -2.9% | 17.3% | -1.9% | 82.3% | 15.5% |
| ROCE (%) | 23.6% | 48.1% | 3.2% | 25.7% | 16.5% | 65.7% | 27.6% |
| Basic EPS | 8.11 | 17.68 | -2.75 | 15.33 | -0.38 | 10.59 | 12.51 |
| Diluted EPS | 8.11 | 17.68 | -2.75 | 15.33 | -0.38 | 10.51 | 12.51 |
As of September 20th, 2023, the grey market premium for the shares of Sai Silks (Kalamandir) IPO is Rs. 0 as per market observers. This indicates that the shares are not yet expected to list at any premium over the listing cap price of Rs. 222.
The company had tried to launch its IPO in 2013 but it failed to garner sufficient investor interest. Since then, Sai Silks (Kalamandir) has shown consistent and considerable growth. It also reflects strong future growth prospects. Considering the rising textile sector in India, the company could achieve positive growth in the future, depending on its plan of action and expansionary strategies.
Investors can invest in this IPO through the Fisdom app.
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