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Unemployment rate unexpectedly rose slightly to 4.1%, the highest level since November 2021

Sai Silks IPO sees tepid response on first day

Investing.com
·2 min read

Sai Silks (Kalamandir), a Hyderabad-based company, experienced a lukewarm response on its initial public offering (IPO) that launched on Wednesday. The firm aimed to raise Rs 1,201 crore ($16.3 million), but only 7% of the shares were subscribed on the first day.

The company offered about 3.85 crore shares for sale, yet bids were received for just over 26 lakh shares. The IPO was priced at Rs 210-222 per share, and investors had the chance to bid for a minimum of 67 equity shares. The retail individual investor category saw a subscription of 12%, while non-institutional investors subscribed by merely 3%.

The IPO comprises a fresh issue of up to Rs 600 crore and an offer for sale of up to 2.70 crore shares by the promoter's group. Prior to the IPO launch, Sai Silks raised over Rs 360 crore from anchor investors such as Societe Generale (OTC:SCGLY), Citigroup (NYSE:C) Global Markets Mauritius, HSBC, BNP Paribas (OTC:BNPQY) Arbitrage, SBI Mutual Fund, ICICI Prudential Mutual Fund, Whiteoak Capital, Eastspring Investments India, HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Abakkus Growth Fund, and Mirae Asset India.

Sai Silks was founded in 2005 by Prasad Chalavadi, a techie-turned-entrepreneur. The company operates four store formats: Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall. The proceeds from the IPO are planned to be used to expand operations and repay debts. Specifically, the company intends to set up new stores costing Rs 125.08 crore and two warehouses costing Rs 25.4 crore. Furthermore, it will allocate Rs 280.07 crore towards working capital requirements and repay its Rs 50 crore debt.

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Motilal Oswal Investment Advisors, HDFC Bank, and Nuvama Wealth Management are managing the IPO. Upon successful completion of the IPO, the equity shares of Sai Silks will be listed on the BSE and NSE.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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