Sai Silks (Kalamandir) Limited is gearing up for an initial public offering (IPO) scheduled to begin offering on September 20, 2023. Sai Silks (Kalamandir) IPO is a prominent company in the ethnic apparel and value fashion products industry and is attracting attention from investors. In this comprehensive article, Sai Silks (Calamandil) IPOkey dates, key information about the company, potential strengths and risks, and an extensive review to help investors make informed decisions.
Sai Silks (Kalamandil) IPO details
| IPO start date | September 20, 2023 |
| IPO deadline | September 22, 23 |
| IPO listing date | October 4, 2023 |
| Type of problem | Book Built Issue IPO |
| face value | 2 rupees per share |
| IPO price range | 210 to 222 rupees per share |
| lot size | 67 stocks |
| Exhibition location | BSE and NSE |
| Total issue size | Rs. 120.1 billion yen |
| Latest issue | Rs. 600 million |
| OFS | Rs. 60.1 billion yen |
IPO schedule
| IPO start date | September 20, 2023 |
| The IPO will close in | September 22, 23 |
| Basis for allocation | September 27, 23 |
| Initiate refund | September 29, 2023 |
| Credit of shares to Demat. | October 3, 2023 |
| Listing date | October 4, 2023 |
| Deadline time for UPI obligation confirmation | September 22, 23 |
About Sai Silks (Kalamandir) Limited
Established in 2005, Sai Silks (Kalamandir) Limited has established itself as a prominent provider of ethnic apparel and value fashion products. Drawing inspiration from India’s rich culture, tradition and heritage, the company offers a diverse range of products. This includes luxury sarees suitable for weddings, party wear, everyday wear, lehengas, ethnic wear for men, ethnic wear for children, and valuable fashion products for women, men and children.
Sai Silks operates in four different store formats.
Calamandil: This format offers contemporary ethnic fashion suitable for middle-income customers. It includes a variety of sarees like tussar, silk, kota, kola, khadi, georgette, cotton, and matka.
Varamahalakshmi Silk: Featuring premium ethnic silk sarees and handlooms, this format targets weddings and everyday wear. Focusing on handlooms such as Kachipuram silk sarees, we feature sarees such as Banarasi, Patola, Kota, Kancheepuram, Paithani, Organza and Kuppadam.
Mandir: It offers ultra-luxury designer sarees targeted at the wealthy. The collection includes designer sarees like Banarasi, Patola, Ikat, Kanchipuram, Paithani, Organza, Kuppadam, etc.
KLM Fashion Mall: It focuses on value fashion at an affordable price point. Includes fusion wear, daily wear sarees and western wear for women, men and children.
Apart from physical stores, Sai Silks reaches its customers through e-commerce channels such as its website sskl.co.in and various online e-commerce marketplaces.
As of July 31, 2023, the company operates over 54 stores across four states in southern India: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, covering a total area of approximately 603,414 square feet. It boasts a wonderful presence. The company’s revenue for financial years 2023, 2022 and 2021 was Rs 200 crore. 13,514.69 million rupees 11,293.23 million rupees 6,772.48 million people respectively.
Financial Snapshot Sai Silks (Kalamandir) IPO
Below is a snapshot of the financials of Sai Silks (Kalamandir) IPO.
| Fiscal year end/period end (amount in billions) | ||||
| detail | FY20 | FY21 | FY22 | 23rd year |
|---|---|---|---|---|
| assets | 692.76 | 665.42 | 842.49 | 1,220.45 |
| revenue | 1178.62 | 679.10 | 1,133.02 | 1,358.92 |
| Profit after tax | 42.1 | 5.13 | 57.69 | 97.59 |
| net worth | 231.51 | 242.99 | 300.66 | 397.33 |
| reserves and surplus | 208.05 | 218.93 | 276.60 | 373.27 |
| Total loan amount | 164.7 | 217.22 | 260.49 | 345.50 |
Target of IPO
Sai Silks (Kalamandir) IPO offers an attractive investment opportunity.
An IPO consists of both an initial issue and an offer for sale (OFS). Proceeds from the OFS will benefit the selling shareholders, while the net proceeds of the new issue will be allocated to:
- Funding capital investment to open 25 new stores.
- Funding the capital investment for the establishment of two warehouses.
- Financing the company’s working capital requirements.
- Full or partial repayment or prepayment of certain borrowings taken out by a company.
- General corporate purposes.
IPO valuation of Sai Silks (Kalamandir) IPO
Sai Silks kalamandir’s IPO price range is Rs 210 to Rs 222 per share.
- Considering last year’s FY23 EPS was Rs 8.11, the P/E ratio is 27 times.
- Considering the last three years’ weighted EPS of Rs 5.72, the P/E ratio is 39x.
- Listed peers such as Torrent Limited have a P/E ratio of 163x (highest), Shoppers Stop Limited has a P/E ratio of 69x (lowest), and the industry average P/E ratio is 98x. Therefore, an IPO price range of 27x to 39x P/E is attractive.
What is Sai Silks Kalamandir IPO GMP today?
Although authentic sources are difficult to come by, some websites and comments list Sai Silks Kalamandir IPO GMP as between 1 rupee and 3 rupees.
Sai Silks (Kalamandir) IPO – Positive elements and key strengths
- Diverse product portfolio: The company’s wide range of products reduces dependence on a single product category.
- Stable revenue growth: Sai Silks (Kalamandir) has consistently shown increasing revenue and has a strong presence in the market.
- Positive approach: The company’s expansion plans and strategic acquisitions show it is ready for the future.
- Attractive valuation: The IPO price is attractive.
Sai Silks (Kalamandir) IPO – Negative or risk factors
- The offer price, market capitalization to total revenue multiple, and price/earnings ratio may not reflect the market price of the shares at the time of listing.
- Our business is highly dependent on sales of women’s sarees and is subject to changes in demand and consumer preferences, which could affect our business, financial results and operations.
- Our current store location may become unattractive, and because leasing real estate involves risks, finding a suitable new location on reasonable terms may be difficult.
- The majority of our sales are derived from stores in southern India, and negative developments in this region could impact our revenues and operations.
- The COVID-19 pandemic has had a significant impact on our business, and the future impact on customer visits and business prospects remains uncertain and could affect our financial performance and stock price. there is.
- We have entered into a business asset transfer agreement to acquire the assets of Sai Retail India Limited, and if the expected benefits or future acquisitions, alliances, or acquisitions do not materialize, our financial condition may be adversely affected. There is a possibility.
- Our promoters have pledged their shares and have entered into agreements with lenders. If lenders exercise or enforce their commitments, the promoters’ shareholdings may be diluted and our business and prospects may be affected.
- The pro forma financial statements in this Red Herring prospectus do not reflect our future financial condition or results of operations.
Also read: SignaturesGlobal India IPO Review – Is this good or bad for your investment?
Sai Silks Kalamandir IPO Review – Should you invest or avoid?
This IPO brings both opportunities and risk factors. This time we will introduce the advantages and disadvantages of IPO investment.
Strong Points:
- Wide selection of products: We have a wide selection of ethnic products and value fashion products.
- Revenue Growth: Consistent revenue growth indicates market strength.
- Forward-thinking: Expansion plans and acquisitions demonstrate readiness for the future.
- Sai Silks Kalamandir’s share price is attractively priced.
Cons:
- We depend on the sale of sarees and are susceptible to changes in the market.
- Store location challenges and rental risks.
- Most of the sales come from South India.
- Uncertainty due to COVID-19 continues.
- Risks in Transfer of Business Assets and Future Transactions.
- Shares promised by promoters to lenders.
- Pro forma financial statements are not predictive of future financial results.
Investors can consider all the positive and negative factors and invest in this IPO.
Suresh KP is the founder of Myinvestmentideas. He is a NISM Certified Investment Advisor and he is a NISM Certified Research Analyst. He has been analyzing financial markets for the past 20 years. He can be contacted at suresh@myinvestmentideas.com.
