Sai Silks files IPO draft papers with Sebi; eyes up to Rs 1,200 cr

Ethnic apparel retailer Sai Silks (Kalamandir) Limited has filed preliminary papers with capital regulator to raise as much as Rs 1,200 crore through an initial public offering (IPO).

The comprises a fresh issue of equity shares worth Rs 600 crore and an offer for sale of up to 18,048,440 equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP).

The net proceeds of the fresh issue will be used for establishing 25 new stores, setting up two warehouses, supporting working capital requirements, payment of debt and general corporate purposes.

As per market sources, the issue size is expected to be Rs 1,200 crore.

Motilal Oswal Investment Advisors, Edelweiss Financial Services and HDFC Bank are the book-running lead managers to the issue.

The equity shares are proposed to be listed on BSE Limited and National Stock Exchange (India) Limited.

Sai Silks is one of the leading retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit after tax in fiscal 2019, 2020 and 2021.

Through its four store formats — Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall — the company offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value fashion.

As of May 31, 2022, the company operated 46 stores in four major south Indian states — Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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