Sai Silk (Kalamandir) sails through on last day of bidding; issue booked over 3x so far

The initial public offering of Sai Sillk (Kalamandir) managed to sail through on the third and final day of the bidding process. The issue had received muted responses during the first two days of bidding as the issue ended day one with only seven per cent subscription, while it was booked 34 per cent at the end of day 2.

Sai Silk is offering its shares in the price band of Rs 210-222 per share. Bids can be made for a minimum of 67 equity shares and its multiples by investors. The company aims to raise Rs 1,201 crore via primary stake sale, including a sale of fresh shares worth Rs 600 crore, while an offer-for sale (OFS) of Rs 601 crore.

According to the data, the investors made bids for 12,01,13,044 equity shares, or 3.12 times, against the 3,84,86,309 equity shares offered for the subscription by 3.10 pm on Friday, September 22. The bidding for the issue, which opened on Wednesday, September 20, closes on Friday, September 22.

The allocation for  qualified institutional bidders (QIBs) was booked 8.88 times, while the portion for non-institutional investors saw a subscription of 1.79 times. However, the portion reserved for retail investors subscribed only 55 per cent at the time of writing this report.

Sai Silks provides ethnic apparel and value-fashion products, majorly in South India. Its product range includes premium and ultra-premium sarees suitable for weddings, party wear, occasional and daily wear, lehengas, men's ethnic wear, children's ethnic wear and value fashion products.

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 per share. HDFC Bank, Motilal Oswal Investment Advisors,  and Nuvama Wealth Management are the managers to the issue and Bigshare Services is the registrar.
 

Majority of the brokerage firms are positive on the IPO of Sai Silk. Marwadi Financial Services has assigned its 'subscribe' rating to this IPO citing its reasonable valuation as compared to its peers. "The company has a leading ethnic wear retail brand with a scalable model. It is well positioned to leverage growth in the ethnic and value-fashion apparel industry in India," it said.

Sai Silk has significant scope for growth, considering its diverse product profile and extensive client base and expanding into high growth and largest saree market of Tamil Nadu, said Deven Choksey Research. "Scope for improvement in margins, resulting in healthy earnings and returns ratios," it added with a 'subscribe' rating. 

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