Sai Silks (Kalamandir) Ltd, which hit the market with a Rs 1,201-crore IPO, will be listed on the bourses on Wednesday. The company has fixed the price at Rs 222, at the upper end of the price band Rs 210-222. While the fresh issue was to the tune of ₹600 crore, it came out with an offer-for-sale (OFS) worth ₹601 crore.
The IPO, which received a lukewarm response from investors on the first day, saw momentum picking up on the last day. The QIB portion has been subscribed 2.35 times. The retail portion remained under-subscribed (0.88 times) and the HNI portion was subscribed 2.47 times.
The company raised over ₹360 crore from anchor investors ahead of the issue. The IPO proceeds will be used 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 a debt of ₹50 crore.
The Hyderabad-based company, founded by Prasad Chalavadi, a techie-turned-entrepreneur in 2005, has four store formats -- Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.