Comments
Sai Silks (Kalamandir) Ltd, which hit the market with a Rs 1,201-crore IPO, will be listed on the bourses on Wednesday. The company has fixed the price at Rs 222, at the upper end of the price band Rs 210-222. While the fresh issue was to the tune of ₹600 crore, it came out with an offer-for-sale (OFS) worth ₹601 crore.
The IPO, which received a lukewarm response from investors on the first day, saw momentum picking up on the last day. The QIB portion has been subscribed 2.35 times. The retail portion remained under-subscribed (0.88 times) and the HNI portion was subscribed 2.47 times.
The company raised over ₹360 crore from anchor investors ahead of the issue. The IPO proceeds will be used to set up new stores at a cost of ₹125.08 crore, two warehouses with a spend of ₹25.4 crore, and working capital requirements amounting to ₹280.07 crore. The company will also repay a debt of ₹50 crore.
The Hyderabad-based company, founded by Prasad Chalavadi, a techie-turned-entrepreneur in 2005, has four store formats -- Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.