Sai Silks (Kalamandir) Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
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IPO Snapshot
Key metrics and details at a glance.
Price Band
₹222
Per ShareLot Size
67 Shares
Minimum Investment
₹14,874
Issue Size
₹1,201 Cr
Face Value
₹2
Per ShareIPO Type
Book Building
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Sai Silks (Kalamandir) Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
54.16%
Promoter Holding (Post-Issue)
38.92%
Issue Type
Book Building
ISIN
INE438K01021
About the Company
The Company is amongst the top 10 retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit after tax in Fiscal 2020, 2021 and 2022. Through our four store formats, i.e., Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall, the company offers its products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion. As of July 31, 2023, the company operated 54 stores in four major south Indian states, i.e., Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.
Industry Overview
The share of organised apparel retail which was 32% in 2020 is expected to increase to 48% in 2027. The share of organised retail in women's apparel, which was 14% in Fiscal 2015, increased to 31% in Fiscal 2022 and is expected to reach 44% by Fiscal 2028, amounting to Rs. 1,754.44 billion.
Company History
The Company's business was started as a partnership firm under the name and style of "Sai Silks" on August 10, 2005 with Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi as its partners. Subsequently, Kalyan Srinivas Annam and Subash Chandra Mohan Annam joined the partnership firm on April 1, 2006 and Suchitra Annam, Sowjanya Annam and Venkata Rajesh Annam joined on March 4, 2008. Further, the name of the partnership firm was also changed to "Sai Silks (Kalamandir)" on March 4, 2008 to incorporate the brand in its name. The partnership firm was subsequently converted into a private limited company and a certificate of incorporation was obtained dated July 3, 2008 under the name and style of 'Sai Silks (Kalamandir) Private Limited' from the Registrar of Companies, Andhra Pradesh at Hyderabad. The Company was further converted into a public limited company pursuant to a special resolution passed by its Shareholders on May 14, 2009 and a fresh certificate of incorporation consequent upon conversion to public limited company was obtained on May 21, 2009 from the Registrar of Companies, Andhra Pradesh. The name of our Company was changed to its present name, 'Sai Silks (Kalamandir) Limited'.
Growth Strategy
- Expand our footprint within India through owned stores and franchise network by leveraging our brand appeal.
- Increase focus on sale of products through e-commerce.
- Leverage technology to bring cost efficiency and enhance customer experience.
Customer Base
Wholesalers and Retailers
Financial Performance
Revenue, profit after tax and total assets across the last 3 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.
Objects of the Issue
How the company plans to utilize IPO proceeds.
Use of Proceeds
The funds raised through this IPO will be used for:
Initial public offering of 5,40,99,027^ equity shares of face value of Rs. 2 each ("Equity Share") of Sai Silks (Kalamandir) Limited (The "Company" or the "Issuer") for cash at a price of Rs. 222 per equity share including a share premium of Rs. 220 per equity share (the "Offer Price") aggregating to Rs. 1201.00^ crores (the "Offer"). The offer comprised of a fresh issue of 27,027,027^ equity shares by the company aggregating to Rs. 600.00^ crores (the "Fresh Issue") and an offer for sale of 27,072,000^ equity shares (the "Offered Shares") aggregating to Rs. 601.00^ crores (the "Offer for Sale"), comprising offer for sale of (a) 6,409,345^ equity shares aggregating to Rs. 142.29^ crores by Nagakanaka Durga Prasad Chalavadi, 7,949,520^ equity shares aggregating to Rs. 176.48^ crores by Jhansi Rani Chalavadi (collectively, the "Promoter Selling Shareholders"), and (b) 3,083,865^ equity shares aggregating to Rs. 68.46^ crores by Dhanalakshmi Perumalla, 656,295^ equity shares aggregating to Rs. 14.57^ crores by Doodeswara Kanaka Durgarao Chalavadi, 6,346,975^ equity shares aggregating to Rs. 140.90^ crores by Kalyan Srinivas Annam, 2,120,500^ equity shares aggregating to Rs. 47.08^ crores by Subash Chandra Mohan Annam and 505,500^ equity shares aggregating to Rs. 11.22^ crores by Venkata Rajesh Annam (collectively the "Promoter Group Selling Shareholders" and together with the promoter selling shareholders, the "Selling Shareholders") (the "Offer for Sale, and Together with the fresh issue, the "Offer"). The offer constitutes 35.27^% of the post-offer paid-up equity share capital of the company. The face value of the equity share is Rs. 2 each. The offer price is 111 times the face value of the equity shares. ^Subject to finalisation of basis of allotment.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Among the leading ethnic and value-fashion retail company in south India having a portfolio of established formats with focused sales and marketing strategy.
- Leading 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.
- Strong presence in offline and online marketplace with an omni-channel network.
- Track record of growth, profitability, and unit economics with an efficient operating model.
- Experienced Promoter, management, and in-house teams with proven execution capabilities.
- The company business is highly concentrated on the sale of women's sarees and is vulnerable to variations in demand and changes in consumer preference, could have an adverse effect on its business, results of operations and financial condition.
- An inability to effectively market its products, or any deterioration in public perception of the company brands, could affect customer footfall and consequently adversely impact its business, financial condition, cash flows and results of operations.
- Current locations of its stores may become unattractive, and suitable new locations may not be available for a reasonable price or acceptable terms, if at all. In addition, the company is exposed to risks associated with leasing real estate and any adverse developments could materially affect its business, results of operations and financial condition. Further, the company is generated substantially all of its sales from stores located in Southern India and any adverse developments affecting its operations in these regions could have an adverse impact on the company revenue and results of operations.
- The current and continuing impact of the ongoing COVID-19 pandemic on its business and operations has been significant. The impact of the pandemic on its operations in the future, including its effect on the ability or desire of customers to visit the company stores, is uncertain and may be significant and continue to have an adverse effect on its business prospects, strategies, business, operations, the company future financial performance, and the price of its Equity Shares.
- The Proforma Financial Statements included in this Draft Red Herring Prospectus are not indicative of its future financial condition or results of operations.