Feb 04, 2013 05:52 PM IST | Source: Business Line

Sai Silks plans Rs 89 cr public issue

Textile retailer Sai Silks (Kalamandir) will be making a debut in the capital market with an initial public offering to raise Rs 89 crore.

Sai Silks plans Rs 89 cr public issue

Textile retailer Sai Silks (Kalamandir) will be making a debut in the capital market with an initial public offering to raise Rs 89 crore.

The company, which has a retail chain of women's, kids and men’s wear, has filed a red-herring prospectus with the SEBI for the IPO.

The promoter group of the company includes Chalavadi Naga Kanaka Durga Prasad, Chalavadi Jhansi Rani and their immediate relatives.

The core business of the firm is retailing of saris, women dress materials, men and kids wear, and sales of gold and silver jewellery. The company has 15 retail outlets across Hyderabad, Guntur, Vijayawada, Bangalore, Kanchipuram and Hanumakonda with cumulative spread of over 1.29 lakh sq feet.

As of March 31st, 2012, the net worth of the company was at Rs 47.65 crore. The company had reported total revenues of Rs 262.76 crore, out of which Rs 163.02 crore was from saris, dress materials and other clothing division and Rs 99.50 crore from gold, silver and diamond jewellery articles last fiscal. The net profit for the period was at Rs 11.69 crore

The issue is being made through the 100 per cent book-building process, with 10 per cent of the issue to be allocated on a proportionate basis to qualified institutional buyers and not less than 55 per cent for retail investors.

The shares are proposed to be listed on the BSE and the NSE.

The book running lead managers to the issue are Ashika Capital and Vivro Financial Services.

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