Sai Silks (Kalamandir)
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 20 Sep 2023 – 22 Sep 2023
- Listing date
- 27 Sep 2023
- Face value
- ₹2 per share
- Issue price
- ₹222 per share
- Lot size
- 67 shares
- Issue type
- Book Building issue
- Total issue size
- ₹1,201 Cr
- Market cap at offer price
- ₹3,405 Cr
- Promoter holding
- 95.23% → 60.80% pre-issue → post-issue
- ISIN
- INE438K01021
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Motilal Oswal Investment Advisors Ltd.
- Registered office
- 6-3-790/8, Flat No.1, Bathina Apartments, Ameerpet, Telangana
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 1,62,29,707 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 67 shares per lot, in multiples, at ₹222
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 67 | ₹14,874 |
| Retail (max) | 13 | 871 | ₹1,93,362 |
| S-HNI (min) | 14 | 938 | ₹2,08,236 |
| S-HNI (max) | 67 | 4,489 | ₹9,96,558 |
| B-HNI (min) | 68 | 4,556 | ₹10,11,432 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.11 | — |
| P/E (×) | 27.37 | — |
| Market cap | — | ₹3,405 Cr |
Key performance indicators
- Return on net worth
- 24.56%
- ROCE
- 23.55%
- Debt / equity
- 0.87
- PAT margin
- 7.22%
- NAV per share
- ₹33.02
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Sai Silks (Kalamandir)
Sai Silks (Kalamandir) Limited began as a partnership firm in 2005 and was converted into a private limited company in 2008, subsequently becoming a public limited company in 2009. The company operates through four distinct store formats—Kalamandir (contemporary ethnic fashion for middle income), VaraMahalakshmi (premium ethnic silk sarees), Mandir (ultra-premium designer sarees), and KLM Fashion Mall (value-fashion)—serving diverse customer segments. As of July 31, 2023, the company operated 54 stores across four southern Indian states (Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka). The company generates revenue primarily from retail sales of sarees and complementary products, which constituted 68.38% of total revenue in Fiscal 2023. Historically, saree sales have dominated the business, though the company also offers fusion wear, lehengas, menswear, and childrenswear. The company procures products from third-party vendors and master weavers located across various states, and as of Fiscal 2023, manages this through both direct procurement and previously through Sai Retail India Limited (a promoter group entity) until acquiring its business assets in April 2022. The company has demonstrated strong growth, with revenue from operations increasing from ₹6,772.48 million in Fiscal 2021 to ₹13,514.69 million in Fiscal 2023.
Company Analysis
from RHPSai Silks (Kalamandir) Limited is a leading ethnic and value-fashion apparel retailer in south India, operating multiple store formats across the region selling primarily sarees and complementary ethnic wear products.
Sai Silks (Kalamandir) Limited began as a partnership firm in 2005 and was converted into a private limited company in 2008, subsequently becoming a public limited company in 2009. The company operates through four distinct store formats—Kalamandir (contemporary ethnic fashion for middle income), VaraMahalakshmi (premium ethnic silk sarees), Mandir (ultra-premium designer sarees), and KLM Fashion Mall (value-fashion)—serving diverse customer segments. As of July 31, 2023, the company operated 54 stores across four southern Indian states (Telangana, Andhra Pradesh, Tamil Nadu, and Karnataka). The company generates revenue primarily from retail sales of sarees and complementary products, which constituted 68.38% of total revenue in Fiscal 2023. Historically, saree sales have dominated the business, though the company also offers fusion wear, lehengas, menswear, and childrenswear. The company procures products from third-party vendors and master weavers located across various states, and as of Fiscal 2023, manages this through both direct procurement and previously through Sai Retail India Limited (a promoter group entity) until acquiring its business assets in April 2022. The company has demonstrated strong growth, with revenue from operations increasing from ₹6,772.48 million in Fiscal 2021 to ₹13,514.69 million in Fiscal 2023.
Objects of the Issue
- Funding capital expenditure towards setting-up of 30 new stores ₹1,250.84 million p.92
- Funding capital expenditure towards setting-up of two warehouses ₹253.99 million p.92
- Funding working capital requirements of our Company ₹2,800.67 million p.92
- Repayment or pre-payment, in full or part, of certain borrowings availed by our Company ₹500.00 million p.92
- General corporate purposes ₹856.87 million p.92
Issue Structure
- Total Issue
- 54,099,027 Equity Shares aggregating to ₹12,009.98 million
- Fresh Issue
- 27,027,027 Equity Shares aggregating to ₹6,000.00 million
- Offer for Sale
- 27,072,000 Equity Shares aggregating to ₹6,009.98 million
- Price Band
- ₹210 to ₹222 per Equity Share
- Lot Size
- 67 Equity Shares
- Face Value
- ₹2 per Equity Share
Business Model
The company operates as a multi-format ethnic and value-fashion apparel retailer, generating revenue primarily through the sale of sarees (68.38% of revenue in Fiscal 2023) and complementary ethnic wear products through its owned retail stores. The company maintains a capital-light leasehold-based store model and manages inventory through warehouses located in Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu. Revenue generation is concentrated in physical retail stores, which accounted for 98.63% of total revenue in Fiscal 2023, with e-commerce representing 1.37%. The company procures inventory from third-party vendors and master weavers without long-term formal agreements, allowing pricing flexibility based on market conditions. The business model is working capital intensive, requiring significant inventory levels to support multiple store formats across different price points and customer segments.
Business Segments
SWOT Analysis
- • Leading ethnic wear retailer in South India with established brand portfolio(p.21)
- • Strong market presence with proven operational execution across multiple store formats(p.21)
- • Benefiting from growth in organized ethnic wear retail segment(p.21)
- • Scalable omni-channel business model with growing e-commerce presence(p.32)
- • Demonstrated financial recovery and growth post-COVID with improving profitability(p.32)
- • High dependency on single product category (sarees) with limited diversification(p.29)
- • Geographic concentration of revenue in Southern India creating regional dependency risk(p.31)
- • High inventory levels relative to revenue and current assets(p.35)
- • Operational dependence on third-party vendors without long-term formal supply agreements(p.38)
- • Significant outstanding liabilities from Income Tax Department search operations(p.46)
- • Expansion of organized ethnic wear retail market with penetration opportunity(p.21)
- • Growth through new store network expansion in high-demand markets(p.95)
- • Accelerating e-commerce penetration with evolving consumer preferences(p.40)
- • Geographic expansion beyond current South Indian markets to untapped regions(p.95)
- • Enhancement of working capital efficiency and operational leverage through IPO(p.92)
- • Intense competition from fragmented unorganized retail sector and new organized players(p.37)
- • Volatility in raw material prices and input cost inflation impacting margins(p.38)
- • Supply chain disruptions and dependence on transportation logistics(p.47)
- • Regulatory and compliance risks including GST implementation and labor code changes(p.56)
- • Market and consumer preference shifts away from ethnic wear to Western fashion(p.29)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Nagakanaka Durga Prasad Chalavadi | Promoter | 45.10% | 31.46% |
| Jhansi Rani Chalavadi | Promoter | 9.06% | 7.47% |
| Kalyan Srinivas Annam | Promoter Group | 11.95% | 9.84% |
| Dhanalakshmi Perumalla | Promoter Group | 2.44% | 2.01% |
| Doodeswara Kanaka Durgarao Chalavadi | Promoter Group | 5.09% | 4.20% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.