Sai Silks Kalamandir (SSKL) has received SEBI nod to raise ₹1,200 crore through an initial public offering (IPO). The company filed draft red herring prospectus (DRHP) in July.

The net proceeds of the fresh issue will be used for setting up 25 new stores and two warehouses, to support working capital requirements, payment of debt and general corporate purposes.

The company has declared ₹1,129-crore revenue and net profit of ₹58 crore in FY22 with ROE of 21 per cent. The company recently reached a milestone of 50 stores.

Fresh issue and OFS

The IPO comprises a fresh equity issuance of ₹600 crore and an offer-for-sale (OFS) of up to 18,048,440 equity shares by promoters and promoter group entities, according to the DRHP.

SSKL is one of the largest retailers of women’s ethnic wear, mainly sarees, in South India, primarily focusing on ultra-premium and premium sarees for weddings, party wear and everyday use.

It operates through four different format stores — Kalamandir, Mandir, VaraMahalakshmi Silks and KLM Fashion Mall, and through e-commerce channels.