Sai Silk (Kalamandir) IPO kicks off on a muted note; booked only 4% so far

The Rs 1,201-crore initial public offering (IPO) of Sai Sillk saw a lackluster response from the investors during the initial few hours of the bidding process on the first day. The issue, which had opened for bidding on Wednesday, September 20 and will close for bidding on Friday, September 22.

Sai Silk (Kalamandir) is selling its shares in the price band of Rs 210-222 apiece and investors can make a bid of a minimum of 67 equity shares and its multiples. The issue includes a sale of fresh equity shares worth Rs 600 crore, while an offer-for sale (OFS) of up to 2.7 crore equity shares worth Rs 601 crore.

According to the data, the investors made bids for 17,23,441 equity shares, or only four per cent, compared to the 3,84,86,309 equity shares offered for the subscription by 1.30 pm on Wednesday, September 20.

The allocation for retail investors was booked just 8 per cent, while the portion for qualified institutional bidders (QIBs) saw a subscription of merely two per cent. However, the portion reserved for non-institutional investors was not even off the mark as of the same time.

Sai Silks (Kalamandir) provides ethnic apparel and value-fashion products. Its product range includes ultra-premium and premium sarees suitable for weddings, party wear, occasional and daily wear, lehengas, men's ethnic wear, children's ethnic wear and value fashion products and more. The company was incorporated in 2005.

On Monday, Sai Silks raised Rs 360.3 crore from 26 anchor investors by allocating 1,62,29,707 equity shares at a price of Rs 222 apiece. Motilal Oswal Investment Advisors, Nuvama Wealth Management and HDFC Bank are the lead managers to the issue and Bigshare Services is the registrar for the issue.

Majority of the brokerage firms are positive on the issue and have suggested subscribing to it. Sushil Finance sees the issue as reasonably priced. "Looking at both opportunities and challenges faced by the company and keeping the further  performance of the company, investors may apply in the IPO for medium to long term," it said.

The company has organically built its strengths from the ground up which have reflected in its healthy growth in profitability and revenues over the years. The driven and skilled management has been a key reason for its success, said Arihant Capital Markets. "We believe it is well poised to grow into the future given its market leadership, focus on providing good quality products and enhancing customer experience," it added with a 'subscribe' rating.

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.

Also read: Hot stocks on September 20, 2023: YES Bank, IRFC, Agi Greenpac, Blue Star and more  

Also read: RVNL, SAIL, Mazagon Dock, BEML, Bharat Dynamics shares to turn ex-dividend today