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Sai Silks (Kalamandir) IPO - Investment Rationale, Issue Details, Financials, Risks: Reliance Securities

Issue opens today and will be closed on Sep 22. The price band for the Rs 1,201 crore IPO has been fixed at Rs 210-222 Apiece.

<div class="paragraphs"><p>Silk saree. (Source: Souravi Sinha/ Unsplash)</p></div>
Silk saree. (Source: Souravi Sinha/ Unsplash)

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Reliance Securities' IPO Report

Sai Silks (Kalamandir) Ltd. will launch its initial public offering today and will be closed on September 22. The price band for the Rs 1,201 crore IPO has been fixed at Rs 210-222 Apiece. The minimum order quantity is 67 shares.

The issue comprises of fresh issue of 2.7 crore shares worth Rs 600 crore and an offer-for-sale of 2.71 crore shares aggregating to Rs 601 crore.

Object of the Issue

  • Expansion of new stores and ware houses

  • Repayment of borrowings

  • General corporate purposes.

Strengths

  • Leading ethnic wear player of the Southern India

  • Strong brands to attract all segments of customers

  • Efficient business model in offline and online

  • Expand footprint within India through owned stores and franchise network.

Key Risk

  • Taste of consumer preferences changes leads to high inventory

  • Concentration of stores located in Southern India

Financials in brief

On the financial front, Kalamandir reported a turnover of Rs 677 Crore, Rs 1129 crore and Rs 1351 crore for FY21, FY22 and FY23 respectively, on a consolidated basis.

It posted net profit of Rs 5.1 crore, Rs 57.7 crore and Rs 97.6 crore respectively for the aforementioned period. While the company’s top-line continued to grow, registering a compound annual growth rate of ~41% over FY21-23, while the bottom line has grown exponentially with higher margins improvement over the past few years.

About the Company

Sai Silks (Kalamandir), established in 2005, headquartered in Hyderabad is one of the largest apparel retailers in South India offering retail textile products such as sarees, women‘s wear, men‘s wear and kids wear.

Sai Silks (Kalamandir), through its four store formats including ‘Kalamandir‘, ‘VaraMahalakshmi Silks‘, ‘Mandir‘ and ‘KLM Fashion Mall‘, offers its products to various segments of the market including premium ethnic fashion, ethnic fashion for middle income and value fashion, with a variety of products across different price points, thereby catering to customers across all the market segments through offline and online marketplaces.

Click on the attachment to read the full IPO report:

Reliance Securities Kalamandir IPO Note.pdf
Opinion
Sai Silks (Kalamandir) IPO: All You Need To Know

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