Sai Silks gets Sebi approval to raise ₹1,200 cr through IPO
NEW DELHI: Ethnic apparel retailer Sai Silks (Kalamandir) Limited has received the Securities and Exchange Board of India’s (Sebi) go ahead to raise as much as ₹1,200 crore through an initial public offering (IPO).
The IPO comprises fresh issue of equity shares worth ₹600 crore and an offer-for-sale of up to 18,048,440 equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP).
The company, which filed preliminary IPO papers with the markets watchdog in July, obtained its observation letter on November 7, an update with the capital markets regulator showed on Tuesday.
In Sebi’s parlance, obtaining its observation letter implies a
go ahead to float an IPO.
The net proceeds of the fresh issue will be used to set up of 25 new stores, two warehouses, to support working capital requirements, payment of debt and for general corporate purposes.
As per market sources, the issue size is expected to be ₹1,200 crore.
Motilal Oswal Investment Advisors, Edelweiss Financial Services and HDFC Bank are the book-running lead managers to the issue.
The equity shares are proposed to be listed on BSE and National Stock Exchange (India) Limited.
Through its four store formats -- Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall -- Sai Silks offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value fashion.
The company currently operates 50 stores in four major south Indian states -- Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.
Meanwhile, one more company, KFin Technologies, has secured Sebi’s approval to float an IPO.
Financial services platform KFin Technologies had filed preliminary IPO papers with Sebi on March 31, and obtained its letter on November 7.