Sai Silks Kalamandir’s stock gains after debut, ends with 10% listing gains

• The market cap of the company is at ₹3,528 crore, as per BSE.
• The ₹1,201 crore public issue was subscribed 4.4 times the shares on offer.
• The net proceeds will be used for capex, working capital needs, debt payment and more.

Sai Silks Kalamandir’s stock debuted on the bourses at a 3.5% premium, in line with grey market expectations. The stock listed at ₹230 as compared to its IPO price of ₹222 per equity share.

In the trading session, the stock gains to end up with listing gains of 10%.

The market cap of the company was at ₹3,528 crore, according to Bombay Stock Exchange on listing.

The ₹1,201 crore public issue was subscribed 4.4 times the shares on offer. The issue received good interest from qualified institutional buyers (QIBs) even as its retail portion was not fully subscribed.

The issue had fixed a price band of ₹210-222 per share for its initial share sale.

Here are the listing gains of the last few market debuts



The issue consists of a fresh issue of equity shares worth up to ₹600 crore and an Offer for Sale (OFS) component of up to 2.7 crore equity shares by promoters and promoter entities.

It will use the net proceeds towards capital expenditure to establish 30 additional stores and two warehouses. It will also use funds for working capital needs, debt payment and other general corporate purposes.

The company is promoted by Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi. They along with other promoter group entities sold shares as a part of the public issue.

The company has a network of 54 stores in four major south Indian states -- Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. It has four store formats -- Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.

Its listed peers include Vedant Fashions, Go Fashion (India), Aditya Birla Fashion and Retail, Trent and Shoppers Stop.

For the financial year ended March 2023, SSKL reported a total revenue of ₹1,351 crore with a net profit of ₹97.6 crore.

“Sai Silk (Kalamandir) is a leading apparel retail brand in India with a scalable model, which is well positioned to leverage growth in the ethnic and value-fashion apparel industry in India with a track record of growth, profitability, and unit economics with an efficient operating model,” said a research report by Anand Rathi.

At the upper price band, the company was valued at P/E of 33x and market cap of ₹3,404 crore post issue of equity shares and return on net worth of 24.56%, said the research firm, which gave it a subscribe for long-term rating to the IPO.