Sai Silks Kalamandir IPO Day 1: The IPO of textile company Sai Silks (Kalamandir) Ltd opened for public subscription today, September 20. The IPO closes on September 22. Till 12 noon on Wednesday, Sai Silks Kalamandir IPO received 4,52,987 bids, compared to 3,84,86,309 shares on offer. The price range for the Rs 1,201.00 crore IPO is Rs 210-222 per share.
Sai Silks Kalamandir IPO GMP
According to market observers, Sai Silks Kalamandir is currently trading Rs 7 higher on the gray market. The gray market premium or GMP of Rs 7 is about 3.15 percent higher than the highest issue price of Rs 222 per share. This means that the gray market expects a stock market profit of 3.15 percent from the public issue.
The ‘gray market premium’ indicates that investors are willing to pay more than the issue price.
About the IPO of Sai Silks Kalamandir
Investors can register for the IPO between Wednesday (September 20) and Friday (September 22). The IPO allocation will take place on September 27. The company will make its stock market debut on October 4 with a listing of its shares on BSE and NSE.
The IPO is a book-built issue of Rs 1,201 crore, comprising a fresh issue of 2.7 crore shares worth Rs 600 crore and an offer for sale of 2.71 crore shares, amounting to Rs 601 crore.
Of the total 5,40,99,027 shares on offer, 50 percent are reserved for qualified institutional buyers, 15 percent for non-institutional investors and 35 percent for retail investors.
Investors must purchase a minimum of 67 shares.
Sai Silks Kalamandir: Should you subscribe?
Brokerage BP Equities gave a ‘Subscribe’ rating to the IPO and said: ‘At the higher price band, the issue is valued at a price-to-earnings ratio of 27x based on FY 2023 earnings, which is lower compared to peers and is reasonable for the retail trade. where the valuation matrix should only get better from now on. We therefore recommend a SUBSCRIBE rating for this song.”
Another brokerage Arihant Capital also gave ‘Subscribe’ to the IPO. It says: “The company has built its strengths organically from the ground up, which has been reflected in healthy growth in profitability and revenue over the years. The driven and professional management has been an important reason for the success. We believe the company is well positioned to grow into the future given its market leadership, focus on delivering good quality products and improving the customer experience. We encourage investors to subscribe.”
Other brokerages including Reliance Securities, Ventura Securities and Choice Securities also rated ‘Subscribe’ on the SSKL IPO.
About Sai Silks Kalamandir Ltd
Sai Silks (Kalamandir) Limited, or SSKL, was founded in 2005. It provides ethnic wear and budget fashion products.
Sai Silks offers a wide range of products including various types of ultra-premium and premium sarees suitable for weddings, party wear, occasional and daily wear, lehengas, men’s ethnic wear, kids’ ethnic wear and value fashion products comprising fusion wear and western wear for women , men and children.
Profit after tax stood at Rs 97.59 crore during the year ended March 2023, Rs 57.69 crore in FY22, Rs 5.13 crore in FY21 and Rs 42.10 crore. Sai Silks’ revenues stood at Rs 1,358.92 crore in FY23, Rs 1,133.02 crore in FY22, and Rs 679.10 crore in FY21, and Rs 1,178.62 crore in FY20.
The book running lead managers (BRLM) for the issue are Motilal Oswal, HDFC Bank and Nuvama Wealth Management.
