NE BUSINESS BUREAU
CHENNAI, JULY 29
Sai Silks (Kalamandir) Limited (SSKL), one of the largest retailers of ethnic apparel, particularly sarees, in South India has filed a draft red herring prospectus (DRHP) with SEBI to raise as much as Rs 1,200 crore through an initial public offering (IPO).
The IPO 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).
- Ethnic apparel retailer Sai Silks (Kalamandir) Limited has filed preliminary papers with capital markets regulator Sebi to raise as much as Rs 1,200 crore through an initial public offering (IPO).
- The net proceeds of the fresh issue will be used for establishing 25 new stores
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.
Hyderbad-based SSKL proposes to utilise the Net Proceeds of the Fresh Issue (Rs 600 crore) towards Funding capital expenditure towards setting-up of 25 new stores; Funding capital expenditure towards setting-up of two warehouses; Funding working capital requirements of the Company; Repayment or pre-payment, in full or part, of certain borrowings availed by the Company; and General corporate purposes.
SSKL, promoted by Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi, is one of the largest retailers of ethnic apparel, particularly sarees, in South India in terms of revenues and profit after tax in Fiscal 2019, 2020 and 2021, as per a Technopak Report.
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.
