Sai Silks Kalamandir's public issue has subscribed just 7 percent on the first day of bidding, September 20, with it received bids for 26.23 lakh equity shares against offer size fo 3.84 crore shares, as per the data available on the exchanges.
Retail investors and high net-worth individuals have bought 12 percent and 3 percent shares of their reserved portion which is 35 percent and 15 percent of the offer size, while qualified institutional buyers (QIB) have bid for 9,112 shares against their reservation of 1,06,64,594 shares which is 50 percent of the offer size.
The Andhra Pradesh-based company aims to raise Rs 1,201 crore through its public issue comprising the fresh issue of Rs 600 crore worth shares and an offer-for-sale (OFS) shares worth Rs 601 crore by the promoter group, at the upper price band.
The price band for the offer, which closes on September 22, has been fixed at Rs 210-222 per share.
Also read: Sai Silks Kalamandir IPO: 10 things to know before subscribing to Rs 1,201-crore issue
The retailer of ethnic apparel, particularly sarees in south India, has mopped up Rs 360.3 crore from several anchor investors at the upper price band on September 18, including Citigroup Global, Societe Generale, BNP Paribas Arbitrage, HSBC, SBI Mutual Fund, Whiteoak Capital, Abakkus, ICICI Prudential Mutual Fund, Eastspring Investments India, and HDFC Mutual Fund. The anchor book is a part of QIB.
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The net fresh issue proceeds will be used mainly for setting up of 30 new stores at a cost of Rs 125.08 crore, two warehouses with a spend of Rs 25.4 crore and working capital requirements amounting to Rs 280.07 crore. The company will also repay its Rs 50 crore debts from the issue proceeds.
The Nagakanaka Durga Prasad Chalavadi-founded company has a network of 54 outlets in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.
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