The ₹1,201-crore initial public offering of Sai Silks (Kalamandir) was subscribed just 7 per cent on the first day of offer on Wednesday. The IPO received bids for 26.16 lakh shares against about 3.85 crore shares on offer. The price range for the offer is Rs 210-222 a share. Investors can bid for a minimum of 67 equity shares.
Lukewarm response
The IPO received bids for 26,16,752 shares against 3,84,86,309 shares on offer. The category for retail individual investors was subscribed 12 per cent and that of non-institutional investors by 3 per cent.
The IPO consists of a fresh issue of up to ₹600 crore and an offer for sale of up to 2.70 crore shares by promoters’ group.
MFs among anchor investors
On Monday, Sai Silks said it has raised over ₹360 crore from anchor investors. Marquee investors Societe Generale, Citigroup Global Markets Mauritius, HSBC, BNP Paribas Arbitrage, SBI Mutual Fund, ICICI Prudential Mutual Fund, Whiteoak Capital, Eastspring Investments India, HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Abakkus Growth Fund, and Mirae Asset India invested in the company via anchor book.
The Hyderabad-based company was founded by Prasad Chalavadi, a techie turned entrepreneur in 2005. It has four store formats -- Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.
Motilal Oswal Investment Advisors, HDFC Bank and Nuvama Wealth Management are the managers to the offer.
Usage of funds
Sai Silks will use proceeds from the IPO 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 its ₹50-crore debt.
The equity shares of the company will be listed on the BSE and NSE.