Sai Silks (Kalamandir) likely to file draft papers for Rs 1,000-1,200 crore IPO soon

Mumbai: Sai Silks (Kalamandir), a Hyderabad-based apparel retailer, is planning to soon file draft documents with the Securities and Exchange Board of India (Sebi) for an initial public offering, said bankers in the know. The company plans to raise Rs1,000-1,200 crore through the share sale, they said.
Financial, , and have been appointed as the bankers for the IPO. Email queries sent to Sai Silks, Motilal Oswal, Edelweiss, and HDFC Bank went unanswered

The company intends to use the IPO proceeds to expand, said bankers. According to a recent note by CARE Rating, Sai Silks had a network of 45 retail outlets across South India as of September 30, 2021. Sai Silks’ flagship brand Kalamandir has stores in Telangana, Andhra Pradesh, and Karnataka.

In the past year or so, various fashion retailers have raised money through IPOs. In February, the celebration wear company

went public to raise Rs 3,149 crore, while raised about Rs 1,014 crores last November. Fab India has got a Sebi nod to go ahead with its Rs 4,000 crore IPO.

Sai Silks derives most of its revenue from women’s garments, contributing around 80% of sales.

In February 2013, the company attempted to enter the primary market by providing a safety net scheme for retail investors but had to withdraw from the IPO.

The company’s total operating income increased by 13%, from Rs. 1,045 crores in FY19 to Rs. 1,177 crores in FY20. It declined to Rs 679 crore in FY21 due to the Covid-led lockdown. The company posted an operating income of Rs. 450 crores in the first half of FY22 with a gross profit of around Rs. 49 crores, as per .

The company is expecting a steady growth in sales from all its stores in the second half of FY22, backed by festival and wedding season during the period, as per CARE Ratings.