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SAI SILK (KALAMANDIR) LIMITED'S IPO 2023
Sai Silks (Kalamandir) Limited’s are retailers in ethnic apparel, particularly sarees in south India. They run four format stores namely Kalamandir, VaraMahalakshmi, Mandir and KLM Fashion Mall. Their market segment includes premium ethnic fashion, ethnic fashion for middle income and value-fashion. As of 31st July 2023, they have around 54 stores in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.
The company expects that their brand name and visibility would enhance by listing their shares in the equity market. You can visit the Sai Silks Kalamandir Limited Website - sskl.co.in to know more about their business and also view
Sai Silks Kalamandir Limited - The Journey
Initially, their business started as a partnership firm under the name “Sai Silks” on 10th August, 2005. Subsequently, the firm was converted into a private limited company Sai Silks (Kalamandir) Private Limited on 3rd July,2008. The company further converted into a public limited company on 21st May, 2009 as “Sai Silks (Kalamandir) Limited”
Apparel Industry in India
The apparel market in India was estimated at approximately US$ 51 billion as of Fiscal 2021 and is one of the larger growing segments of the Indian retail sector.
Apparel and accessories are estimated to have the highest share in the Primary Non-Food sector and are expected to show the highest growth at 20.38% CAGR over the next 5 years.
The share of apparel in the overall Indian retail basket is expected to be 9.4% by Fiscal 2027, which would be the highest within discretionary spend categories.
|
Fiscal year |
Size in Billion |
|
|
Estimated |
2020 |
US$ 55.9 |
|
Estimated |
2022 |
US$ 51.4 |
|
Expected |
By 2027 |
US$ 133.53 |
The factors influencing the growth of apparel market are higher brand consciousness, increasing digitization, greater purchasing power and increasing urbanization.
Apparel Market in India in Fiscal 2022
|
Total Apparel |
Western wear |
Indian wear |
|
|
Men |
41% |
||
|
Women |
37% |
||
|
Kids |
21% |
||
|
Total |
70% |
30 % |
In the women wear market, Indian wear contributed approximately 67 % to the total market. Also, women's wear is expected to be the fastest growing segment in Indian Apparel market. However, for men and kids, the contribution of western wear is significant.
Sai Silks Kalamandir Limited IPO (Initial Public Offering) Details
Sai Silks Kalamandir Ltd IPO – Goals & Objectives
Sai Silks Kalamandir Limited proposes to utilise the Net Proceeds towards funding the following objects:
|
Particulars |
Amount (in Rs. Million) |
|
Capital for establishing 30 new stores |
1,250.84 |
|
Capital for establishing 2 warehouses |
253.99 |
|
Need for Working capital expenditure |
2,800.67 |
|
Repayment of Company’s borrowings |
500.00 |
|
General purposes. |
To be finalised upon determination of the Offer Price and updated in the Prospectus prior to filing with the RoC. The amount utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds. |
Sai Silks Kalamandir Limited IPO Dates
|
Event |
Indicative Date |
|---|---|
|
Bid/ Offer Open Date: |
20th September,2023 (Wednesday) |
|
Bid/ offer closes on: |
22nd September,2023 (Friday) |
|
Allotment Finalisation |
On or about Wednesday, September 27, 2023 |
|
Refund Initiation |
On or about Friday, September 29, 2023 |
|
The credit of Shares to Demat |
On or about Tuesday, October 3, 2023 |
|
Listing Date |
On or about Wednesday, October 4,2023 |
Sai Silks Kalamandir Limited IPO Price details
|
IPO |
Details |
|
Face value of equity share |
Rs. 2 each |
|
IPO price band |
Rs.210-222 per share |
|
Lot size |
67 shares |
|
Lot amount |
Rs.14070 – 14874 per lot |
|
Fresh Issue |
Rs.6000 million |
|
Offer for sale |
27,072,000 Equity Shares (27072000 * 222) approx. Rs 6000 million |
|
Total issue size |
12000 million (upper end of the price band) |
|
Listing Stock Exchanges |
Bombay Stock Exchange National Stock Exchange |
|
Book Running Lead Managers |
Motilal Oswal Investment Banker HDFC Bank Limited Nuvama Wealth Management Limited Bigshare Services Private Limited |
Sai Silks Kalamandir Limited share price is set to be Rs.210-222 per share for its initial public offering.
Sai Silks Kalamandir Limited - Investment Potential
Qualitative Factors (claimed for Sai Silks IPO)
-
Leading ethnic wear and value fashion retail apparel company based in south India.
-
Well positioned to leverage growth in ethnic wear and value fashion
-
Omni channel network of sales and distribution
-
Efficient Operating Model
-
Well experienced promoters.
Quantitative Factors (as per the Restated Financial Statements)
Basic and Diluted Earnings Per Share (EPS)
|
Period |
Basic EPS (in Rs) |
Diluted EPS (in Rs) |
Weight |
|
March 31,2023 |
8.11 |
8.11 |
3 |
|
March 31,2022 |
4.79 |
4.79 |
2 |
|
March 31,2021 |
0.43 |
0.43 |
1 |
|
Weighted |
5.72 |
5.72 |
Return on Net Worth (RoNW):
|
Period |
RoNW (%) |
Weight |
|
March 31,2023 |
24.56 |
3 |
|
March 31,2022 |
19.19 |
2 |
|
March 31,2021 |
2.11 |
1 |
|
Weighted |
19.03 |
Key Financial and Operational Metrics (KPIs)
This is to understand and analyze Sai Silks Kalamandir’s business performance
|
Financial Performance Indicators |
|||
|
(Rs million, except percentages) |
|||
|
Particulars |
2021 |
2022 |
2023 |
|
Revenue from Operations |
6,772.48 |
11,293.23 |
13,514.69 |
|
EBITDA |
623.61 |
1330.48 |
2125.31 |
|
Net Profit |
51.31 |
576.87 |
975.88 |
|
Debt to Equity Ratio |
0.89 |
0.87 |
0.87 |
|
Operational Performance Indicators |
|||
|
Stores |
42 |
46 |
54 |
In FISCAL 2023,
-
Sai Silks Kalamandir has posted a net profit of Rs.975.88 million which is supported by strong operational performance indicators.
-
Revenue from operations has increased year on year to Rs.13514 million.
-
The EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) is increased to Rs.2125 million.
Risk Factors
An investment in equity shares involves a high degree of risk. Investors should carefully consider all the information in this Red Herring Prospectus, including the risks and uncertainties described below, before making an investment in the Equity Shares.
Risks related with Sai Silks Kalamandir Limited
-
The Offer Price, market capitalization to total revenue multiple and price to earnings ratio based on the Offer Price of the Company, may not be indicative of the market price of the Equity Shares on listing.
-
The Proforma Financial Statements included in this Red Herring Prospectus are not indicative of future financial condition or results of operations.
-
Industry information included in this Red Herring Prospectus has been derived from an industry report prepared by Technopak Advisors Private Limited exclusively commissioned and paid for by us for such purpose.
Frequently Asked Questions
How to apply for the Sai Silks Kalamandir IPO?
The investor can apply for the IPO through a trading app or through an authorized brokerage. In any of the cases, IPO applications for Sai Silks Kalamandir should follow ASBA process.
What is the ASBA process?
ASBA stands for Application Supported by Blocked Amount in which the IPO application money remains blocked in the investor's account till finalization of the allotment of issue. This application money shall only be debited from the investors account by the issuer only if their application is allotted with shares or else the money will be released in cases of cancellation or failure.
Who all can apply?
Public Financial Institutions, Resident Indian individuals, Eligible NRIs, HUFs (in the name of the karta), companies, corporate bodies, scientific institutions societies, trusts, family offices and FPIs who are individuals, corporate bodies and family offices, and Anchor Investors
When is the IPO opening and closing date?
The Sai Silks Kalamandir IPO is opened from 20th September, 2023 until 22nd September, 2023 (UPI mandate end time is 5.00 pm on closing date)
What is the issue price for Sai Silks Kalamandir IPO?
The issue price band is Rs.210- 222 per share and the share can be bought only as a lot of 67 shares equivalent to Rs. 14874.
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