⁠Silky Overseas IPO Opens For Subscription — Check Offer Size, Price Band, GMP And More

The initial public offering of Silky Overseas Ltd. opened for subscription on Monday. The company is engaged in the manufacturing of bedding essentials. It specialises in blankets, bed sheets and comforters. Investors considering the NSE SME IPO must check out these key details before making a decision.

Silky Overseas IPO is a Rs 30.68-crore book-built issue, comprising an entirely fresh offering of 19.06 lakh equity shares.

The Silky Overseas IPO has a structured allocation for different investor categories. No more than 50% of the net issue is earmarked for Qualified Institutional Buyers. At least 35% is reserved for retail investors and a minimum of 15% is allocated to Non-Institutional Investors.

Investors can apply for a minimum of 800 shares and in multiples thereafter. For retail investors, the minimum and maximum application size is one lot, equivalent to 800 shares, amounting to Rs 1,28,800. High Net-worth Individuals must apply for at least two lots, totalling 1,600 shares, which requires an investment of Rs 2,57,600.

The Silky Overseas IPO bidding period will close on Wednesday, July 2. Allotment of shares is expected to be finalised on Thursday, July 3, followed by initiation of refunds and credit of shares to investors' demat accounts on Friday, July 4. The IPO is tentatively scheduled to list on the NSE SME platform on Monday, July 7.

Gretex Corporate Services Ltd. is the book-running lead manager for the Silky Overseas IPO, with Skyline Financial Services Pvt. serving as the registrar. Gretex Share Broking Pvt. has been appointed as the market maker for the issue.

The Silky Overseas IPO has been subscribed 0.04 times as of 12:09 p.m. on Monday.

• Qualified Institutional Buyers: nil

• Non-Institutional Investors: 0.01 times

• Retail Investors: 0.07 times

*The subscription status will be updated at regular intervals

According to InvestorGain, Silky Overseas SME IPO was commanding a grey market premium of Rs 16 as of 11:33 a.m. on June 30. With the IPO’s upper price band set at Rs 161, the listing price is expected to be around Rs 177. This hints at a possible gain of nearly 10% per share.

Note: GMP is not an official source of data and is based on speculation.

Silky Overseas Ltd. was established in May 2016. The company handles the entire production process in-house, from knitting and dyeing to processing, printing and packaging. The company markets its range of textile products under the brand name Rian Decor.

Its manufacturing operations are based in Gohana, Haryana, where it produces bedding essentials including blankets, bed sheets and comforters.

Use of Proceeds

Silky Overseas plans to use net proceeds from its IPO for several key purposes. A portion will be allocated to setting up an additional storage facility. The company also intends to repay or prepay certain existing debt facilities. Another part of the funds will be used to meet working capital requirements. The remaining amount will go toward general corporate purposes.

Financials

For the period ending January 31, Silky Overseas Ltd. posted a revenue of Rs 105.35 crore and a profit after tax of Rs 9.17 crore. For the full financial year ended March 31, 2024, the revenue stood at Rs 70.26 crore with a profit after tax of Rs 5.53 crore. In FY23, the company reported Rs 68.35 crore in revenue and Rs 98 lakh in profit.

Disclaimer: Investments in initial public offerings are subject to market risks. Please consult with financial advisors and read the red herring prospectus thoroughly before placing bids.