Sai Silks (Kalamandir) Limited [SSKL] commenced operations in 2005 at Hyderabad, Telangana. It is amongst the top 10 retailers of ethnic apparel, particularly sarees, in Southern India with a 54-store network.
Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi are the promoters of Sai Silks (Kalamandir) Limited. Sai Silks (Kalamandir) IPO is opening on 20th September 2023 for subscription. You can bid in the IPO using the net banking facility under ASBA.
The company is raising Rs. 600 crores of fresh IPO money for opening 30 new stores and for repaying certain borrowing. The total Issue size is Rs. 1201 Cr. There is Rs. 601 Cr of OFS portion in the IPO.
Below you can find the complete SSKL IPO review and details that will help you make an informed IPO investment decision.
Sai Silks (Kalamandir) Limited IPO Details
| Particulars | IPO Details |
| IPO Opening date | 20th September 2023 |
| IPO Closing date | 22nd September 2023 |
| IPO Price | Rs. 210 to Rs. 222 per share |
| Lot size | 67 shares |
| Issue size | Up to Rs. 1201 Cr |
| No. of fresh shares | 27,027,027 shares aggregating to Rs. 600 crores |
| Offer for Sale | 27,072,000 shares aggregating to Rs. 601 cores |
| Listing on | BSE and NSE |
You can check the list of upcoming IPOs in 2023.
Sai Silks (Kalamandir) Limited IPO Timetable
| Particulars | IPO Details |
| IPO Opening date | 20th September 2023 |
| IPO Closing date | 22nd September 2023 |
| Basis of Allotment date | 27th September 2023 |
| Credit of Share | 03rd October 2023 |
| Listing date | 04th October 2023 |
Sai Silks (Kalamandir) Limited IPO GMP
Sai Silks (Kalamandir) GMP is not available at present on any of the leading financial websites and blogs.
GMP data collected from various sources like reputed financial websites, news channels, stockbrokers and IPO blogs is under.
Remember – Grey Market Price (GMP) shows you an indicative price of Sai Silks (Kalamandir) Limited upon listing. You should take precautions because GMP is not an official price and only an indicative value.
| Date | GMP |
| 20th September 2023 | Rs. xx (will be updated) |
| 19th September 2023 | Rs. xx (will be updated) |
| 18th September 2023 | Rs. 7 |
| 17th September 2023 | Rs. 7 |
Sai Silks (Kalamandir) Limited Issue Size
The total Issue Size of Sai Silks (Kalamandir) IPO is Rs. 1201 crores. Divided into fresh issue amount of Rs. 600 crores and an OFS portion of Rs. 601 crores.
The IPO aggregate issue size = Fresh Issue of 600 cr + 601 Crs of OFS portion, a total of Rs. 1201 crs.
You can bid for any of the options. The IPO bidding process can be found here.
Sai Silks (Kalamandir) Limited Overview
SSKL was founded by Nagakanaka Durga Prasad Chalavadi, the first store was named ‘Kalamandir’ store in 2005 in Hyderabad, Telangana.
Over the years SSKL expanded to 54 stores in four south Indian states of Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, with an aggregate area of approximately 603,414 square feet.
The company is amongst the top 10 retailers of ethnic apparel, particularly sarees, in South India in terms of revenues and profit after tax.
SSKL focuses on spreading India’s vibrant culture, traditions and heritage by offering a diverse range of products which include –
- various types of ultra-premium and premium sarees suitable for weddings, party wear, as well as occasional and daily wear
- lehengas, men’s ethnic wear, children’s ethnic wear
- value fashion products comprising fusion wear and western wear for women, men and children
SSKL stores are – Kalamandir, VaraMahalakshmi Silks, Mandir and KLM Fashion Mall, through which it offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion.
Industry Overview
Retail Market in India was valued at US$ 492 billion in Fiscal 2015 and reached a value of US$ 746 billion in Fiscal 2020, growing at 8.7% CAGR.
Currently, the Retail Market in India was valued at US$ 951 billion in Fiscal 2023 and is expected to grow at a CAGR of 13.8% to reach US$ 1,417 billion by Fiscal 2027.
The Apparel market size in Fiscal 2020 was US$ 55.9 billion and reached a market value of US$ 51.4 billion in Fiscal 2022.
Between Fiscal 2022 and Fiscal 2027, the apparel market is expected to grow at a CAGR of 21% to reach US$ 133.53 billion in Fiscal 2027.
Factors responsible for the CAGR growth are
- higher brand consciousness
- increasing digitization
- greater purchasing power
- increasing urbanization
Of this Men’s apparel constituted approximately 41% and Women apparel share was estimated to be approximately 37% of the total apparel market in Fiscal 2022. The balance of approximately 21% is contributed by kids’ apparel.
Out of the total apparel market, Indian wear accounted for approximately 30% % (approximately US$ 15.5 Billion) and the balance 70% of the market comprised of western wear.
The high share of Indian wear in the total apparel is a unique feature of the apparel market in India. In the women’s wear market, Indian wear contributed approximately 67 % to the total market.
Sai Silks (Kalamandir) Limited Subscription Data
Day-wise subscription data of the Sai Silks (Kalamandir) Limited IPO is under.
Subscription data shows the number of times the IPO is subscribed overall and also separately under each category.
| Date | QIB | NII | Retail | Employee | Total |
| Day – 1 20th September 2023 | (TBD) | (TBD) | (TBD) | (TBD) | (TBD) |
| Day – 2 21st September 2023 | (TBD) | (TBD) | (TBD) | (TBD) | (TBD) |
| Day – 3 22nd September 2023 | (TBD) | (TBD) | (TBD) | (TBD) | (TBD) |
Sai Silks (Kalamandir) Limited Promoter Details
Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi are the promoters of Sai Silks (Kalamandir) Limited.
Both the promoters collectively hold 68,427,000 equity shares, which constitute 54.16% of the issued, subscribed and paid-up equity share capital of the company.
Another 41.08% are held by 6 persons (including SSKL Family trust) forming part of the promoter group. In total 95.24% of the shares of the company is with the promoters and promoter group.
Sai Silks (Kalamandir) Limited Financials
Key financials of Sai Silks (Kalamandir) Limited Ltd. for the last 3 completed financial years FY23, FY22, and FY21 are under.
| Details | FY- 2023 | FY- 2022 | FY- 2021 |
| Total Assets | Rs. 1220.45 cr | Rs. 842.48 cr | Rs. 665.42 cr |
| Total Income | Rs. 1358.92 cr | Rs. 1133.01 cr | Rs. 679.09 cr |
| Profit/ Loss After Tax | Rs. 97.58 cr | Rs. 57.68 cr | Rs. 5.13 cr |
| Net Worth | Rs. 397.33 cr | Rs. 300.66 cr | Rs. 242.99 cr |
| Other Equity (including retained earnings) | Rs. 373.26 cr | Rs. 276.59 cr | Rs. 218.92 cr |
| Total Borrowing | Rs. 345.49 cr | Rs. 260.48 cr | Rs. 217.22 cr |
Net worth of Sai Silks (Kalamandir) Limited grew from Rs. 243 Cr in FY 2021 to Rs. 397 Cr in FY 2023. In the past three years, Sai Silks (Kalamandir) Limited’s long-term borrowings have also increased from Rs. 217 cr to Rs. 345 Cr.
The total income of Sai Silks (Kalamandir) Limited has almost doubled in the last three years from Rs. 679.09 cr to Rs. 1358.93 cr. And the PAT grew ~19x in the same period from Rs. 5.13 Cr to Rs. 97.58 Cr.
Sai Silks (Kalamandir) Limited Peer Comparison
The following peer group has been determined on the basis of companies listed on Indian stock exchanges, whose business profile is comparable to Sai Silks (Kalamandir) Limited
| Company | EPS | NAV | P/E | RoNW |
| Sai Silks (Kalamandir) Limited | 8.11 | 33.02 | – | 24.56% |
| Vedant Fashions Limited | 17.68 | 57.66 | 71.29 | 30.65% |
| TCNS Clothing Co. Limited | -2.75 | 99.10 | NA | NA% |
| Go Fashion (India) Limited | 15.33 | 96.36 | 87.74 | 15.91% |
| Aditya Birla Fashion and Retail Limited | -0.38 | 35.24 | NA | NA% |
| Shoppers Stop Limited | 10.59 | 18.79 | 69.34 | 56.30% |
| Trent Limited | 12.51 | 74.91 | 163.76 | 14.78% |
You can use net banking (ASBA) to invest in an IPO if you want. ASBA is quick, hassle-free and can be completed in 5 minutes
Sai Silks (Kalamandir) Limited Objects of the Issue
Sai Silks (Kalamandir) Limited proposes to utilize the Net Proceeds from the Issue for
1. Funding capital expenditure towards setting of 30 new stores
SSKL operates 54 stores under different formats like – Mandir, Vara Mahalakshmi, Kalamandir and KLM Fashion Mall located across Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, with an aggregate area of approximately 603,414 sq. ft.
SSKL intends to open 30 new stores across different formats (Vara Mahalakshmi and Kalamandir) over the course of the next three fiscals at a total cost of Rs. 125.08 Cr
2. Funding capital expenditure towards setting-up of two warehouses
SSKL manages the inventory and logistics from four warehouses in Karnataka, Andhra Pradesh, Telangana and Tamil Nadu with an aggregate area of approximately 164,000 sq. ft
The additional 2 warehouses are needed to cater to the aforementioned expansion of 30 new stores across Andhra Pradesh, Tamil Nadu and Telangana. The 2 warehouses ensure that product requirements and order fulfillment at each store, across all store formats, is done in a timely and efficient manner
The estimated amount of Rs. 25.39 Cr would be utilized towards setting up the two warehouses.
3. Funding working capital requirements of our Company
SSKL’s business is working capital intensive and it funds most of the working capital requirements from internal accruals and draw down on overdraft facilities.
The incremental and proposed working capital requirements for the next three years are under
- Rs. 696.20 Cr for FY 2024
- Rs. 873.02 Cr for FY 2025
- Rs. 1051.17 Cr for FY 2026
The estimated amount of Rs. 280.06 Cr would be utilized towards the working capital requirements of the company.
4. Re-payment/pre-payment of certain borrowings by the company
SSKL entered into various financing arrangements with banks and financial institutions. The loan facilities availed includes borrowing in the form of – term loans, vehicle loan and working capital loans.
As at July 31, 2023, SSKL’s total outstanding borrowings amounted to Rs. 357.02 Cr. The company proposes to utilize an estimated amount of Rs. 50 Crs from the Net Proceeds towards repayment of certain borrowings availed.
5. General corporate purposes
In compliance with the SEBI ICDR Regulations, the company confirms that not more than 25% of the Gross Proceeds shall be used for General Corporate Purposes.
Sai Silks (Kalamandir) Limited IPO: Is it Worth Applying?
SSKL is a leading ethnic and value-fashion retail company in South India. It is amongst the top 10 retailers of ethnic apparel, particularly sarees, in Southern India with a 54-store network.
The company’s net worth grew from Rs. 243 Cr in FY 2021 to Rs. 397 Cr in FY 2023. In the past three years, Sai Silks (Kalamandir) Limited’s long-term borrowings have also increased from Rs. 217 cr to Rs. 345 Cr.
The total income of Sai Silks (Kalamandir) Limited has almost doubled in the last three years from Rs. 679.09 cr to Rs. 1358.93 cr. And the PAT grew ~19x in the same period from Rs. 5.13 Cr to Rs. 97.58 Cr.
Key risks to check are –
- SSKL’s business is highly concentrated on the sale of women’s sarees (68%) and is vulnerable to variations in demand and changes in consumer preference
- Concentration of stores located in Southern India
- Promoter Nagakanaka Durga Prasad Chalavadi has pledged 31.33% of his Equity Shares to SBI
- The company faces high inventory costs due to the nature of its business
- SSKL’s business is subject to seasonality. Lower revenues in the festive period of any Fiscal may adversely affect our business, and financial condition
You can check the allotment status 3-4 days after Sai Silks (Kalamandir)’s IPO is complete.
