Sai Silks Kalamandir, a well-known Indian retail company, has successfully secured an impressive ₹360.30 crore in investments from anchor investors as part of its initial public offering (IPO) preparations. This significant development occurred just ahead of the IPO's subscription window, which opened on September 20, 2023, and is scheduled to conclude on September 22, 2023.
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In this anchor round, Sai Silks Kalamandir allocated a total of 16,229,707 equity shares to 26 anchor investors. These investors demonstrated a strong vote of confidence in the company by participating in the anchor book at a share price of ₹222, reflecting the upper end of the price band. Among the notable anchor investors were industry giants such as Whiteoak Capital, Abakkus, Citigroup Global, SBI MF, ICICI Prudential MF, HDFC MF, and more.
The IPO by Sai Silks Kalamandir comprises two components: a fresh issuance of ₹600 crore worth of shares and an offer for sale (OFS) of up to 2.70 crore equity shares by the promoter and the promoter group. The primary objectives behind raising these funds include expanding the company's retail footprint by establishing 30 additional stores and two new warehouses. Furthermore, the funds will be utilized for addressing working capital requirements, repaying existing debt, and supporting general corporate initiatives.
The IPO is being shepherded by notable financial institutions, with Motilal Oswal Investment Advisors Ltd., HDFC Bank Ltd., and Nuvama Wealth Management Ltd. serving as the book-running lead managers. Additionally, Bigshare Services Private Ltd. has been entrusted as the registrar for the IPO. It is anticipated that the shares issued through this IPO will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) on October 4, 2023, with market expectations suggesting a listing price of ₹229 per share, signifying a premium of ₹7 per share in the grey market.
The IPO presents investors with an attractive opportunity, given the pricing band set at Rs. 210–222 per share. Sai Silks Kalamandir, with a widespread network of 54 stores operating across various states, is renowned for its diverse range of premium products, including sarees, lehengas, and ethnic wear. The company's strong financial performance, characterized by substantial revenue and profit growth in recent years, has garnered considerable attention and confidence from investors.
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