Nagakanaka Durga Prasad Chalavadi-founded company Sai Silks Kalamandir's IPO has managed to get good response from the investors on the final day of bidding, September 22. The initial public offering has been subscribed 4.4 times so far, with bids for 16.94 crore equity shares against offer size of 3.84 crore shares, as per the subscription data available on the exchanges.
Qualified institutional buyers and high networth individuals have supported the issue on closing day, bidding 12.35 times and 2.47 times the allotted quota which is 50 percent and 15 percent of the issue size, respectively.
Retail investors seem to be less excited about the offer, buying 88 percent shares of the reserved portion which is 35 percent of the total offer.
The Rs 1,201-crore public issue was subscribed 33 percent till September 20-21.
The initial public offering by the Andhra Pradesh-based company offering ethnic apparel products, including various types of ultra-premium and premium sarees, comprises a fresh issuance of shares worth Rs 600 crore and an offer-for-sale (OFS) of shares worth Rs 601 crore by promoters.
The price band for the offer is Rs 210-222 per share.
On September 18, a day before the issue opening, Sai Silks Kalamandir has mobilised Rs 360 crore from several anchor investors including HSBC, Societe Generale, BNP Paribas Arbitrage, Citigroup, ICICI Prudential Mutual Fund, SBI Mutual Fund, Abakkus Growth Fund and HDFC Mutual Fund.
The net fresh issue proceeds will be utilised by the company mainly for the setting up of 30 new stores, two warehouses, working capital requirements and repaying debts.
Also read: Zaggle prepaid stock lists at IPO price. Should investors hold, sell, or buy?
In consultation with the BSE, the designated stock exchange, Sai Silks with network of 54 stores in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu is going to finalise the basis of allotment of IPO shares by the end of September 27 and the equity shares will be credited to demat accounts of successful investors by October 3. The initiation of refunds (if any, for Anchor Investors) or unblocking of funds from ASBA account will take place by the end of September 29.
The trading in its equity shares will commence with effect from October 4, as per the IPO schedule.
Also read: Samhi Hotels sees tepid debut of 7% premium; Experts explore the best move for investors
Considering the companies using the new timeline of T+3 (issue closing date + three working days) for listing its equity shares, the scheduled listing of Sai Silks shares may also change. The market regulator Sebi has made the listing in T+3 timeline voluntary for IPOs opening with effect from September 1 and mandatory for IPOs launching from December 1, 2023.
So far, Samhi Hotels, Zaggle Prepaid Ocean Services and Ratnaveer Precision Engineering listed their shares in the T+3 timeline, while RR Kabel made its shares listing in T+2 timeline.
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Sai Silks shares traded at around 5 percent premium over the upper price band, in the grey market, an unofficial platform wherein IPO shares can be bought and sold till the listing, analysts said on anonymity.
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