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Sai Silks IPO
Sai Silks (Kalamandir) Limited
₹14,070 /67 sharesMinimum Investment
Sai Silks IPO Details
| Bidding Dates | Min. Investment | Lot Size | Price Range |
|---|---|---|---|
| 20 Sep ‘23 - 22 Sep ‘23 | ₹14,070 | 67 | ₹210 - ₹222 |
| Issue Size | IPO Doc |
|---|---|
| 1201.00Cr | RHP PDF |
Subscription rate
| Qualified Institutional Buyers | 12.35x |
| Non-Institutional Investor | 2.47x |
| Retail Individual Investor | 0.88x |
| Employees | 0.00x |
| Total | 4.40x |
About Sai Silks
Founded in
2008
Managing director
Mr. Nagakanaka Durga Prasad Chalavadi
Parent organisation
Sai Silks (Kalamandir) Limited
Strengths & Financials of Sai Silks
Strengths
Risks
Sai Silks ranks among the top 10 retailers in South India for ethnic apparel, especially sarees, based on revenue and post-tax profits for 2020, 2021, and 2022.
The company's wide range of products at various price levels has catered to more than 5.98 million customers since its inception.
Between 2021 and 2023, the company added 15 new stores, including three format conversions.
Beginning with its first 'Kalamandir' store in Hyderabad, Telangana, in 2005, the company has expanded to 54 stores across four major south Indian states: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu, with a combined area of approximately 603,414 square feet as of July 31, 2023.
In 2023, the company's websites (across all its four store formats) averaged 6,463 daily visits, compared to 9,715 and 3,158 daily visits in 2022 and 2021, respectively.
Online sales contributed Rs. 5.49 crores, Rs. 17.16 crores, and Rs. 18.47 crores to the company's revenue from operations in 2021, 2022, and 2023, respectively, accounting for 0.81%, 1.52%, and 1.37% of total revenue.
The company's increased emphasis on eCommerce has expanded its product reach, with sarees shipped to 25 states and six union territories across India in 2023
Sai Silks' primary focus is on selling women's sarees, making it susceptible to shifts in demand and changing consumer preferences.
The majority of the company's sales come from stores located in Southern India. Any negative developments affecting operations in these regions could detrimentally affect revenue.
The company has entered into a business assets transfer agreement to acquire Sai Retail India Limited's assets. Failing to realize the expected benefits of this transfer or any future acquisitions, partnerships, or purchases may adversely affect the company's business and financial condition.
The company's business model necessitates the maintenance of significant inventories, resulting in high inventory costs. The inability to maintain an optimal inventory level could adversely impact the company's business.
The company faces unique challenges when operating in a fragmented market with unorganized and single-store competitors.
The company sources its products from third-party vendors and master weavers without formal long-term agreements. It exposes the company to potential difficulties in procuring sufficient quantities or desired product quality promptly or at favorable prices.
As of July 31, 2023, the company had outstanding borrowings totaling Rs. 357.02 crores. Failure to meet conditions or obtain consents related to these borrowings could adversely affect the company's business and operations.
Dependence on sales through third-party online marketplaces leaves the company vulnerable.
As of July 31, 2023, the company had provided loans totaling Rs. 32.61 crores to certain employees. In the event of default by these employees, it could impact the company's cash flows and financial condition.
Sai Silks Financials
*All values are in Rs. Cr
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Application Details of Sai Silks IPO
| Apply as | Price band | Apply Range |
|---|---|---|
| Regular | ₹210 - 222 | Upto ₹2 Lakh |
| High Networth Individual | ₹210 - 222 | ₹2 - 5 Lakh |
For Sai Silks IPO, eligible investors can apply as Regular.