Sai Silks (Kalamandir) has opened its initial public offering (IPO) for subscription on the second day of bidding, September 21. The offer has received a muted response so far, with bids for 1.24 crore equity shares against the IPO size of 3.84 crore shares, resulting in a 33 percent subscription.
Retail investors and high networth individuals 9HNIs) have bought 26 percent and 27 percent shares of the parts set aside for them, which is 35 percent and 15 percent of the total issue size, respectively.
The response by qualified institutional buyers (QIB) was better than HNIs and retail, who subscribed for 51 percent shares of their reserved portion, which is 50 percent of the IPO.
The Andhra Pradesh-based company offers ethnic apparel products, including various types of ultra-premium and premium sarees intends to raise Rs 1,201 crore via public issue at the upper price band.
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The offer comprises a fresh issuance of shares worth Rs 600 crore and an offer-for-sale of Rs 601 crore worth of shares by promoters. The price band for the offer, which closes on September 22, has been set at Rs 210-222 per share.
Of the total offer, Rs 360 crore has already been mobilised by the company from anchor investors on September 18. Societe Generale, Citigroup Global Markets Mauritius, HSBC, BNP Paribas Arbitrage, SBI Mutual Fund, ICICI Prudential Mutual Fund, Whiteoak Capital, Abakkus Growth Fund and HDFC Mutual Fund have bought shares in the anchor book.
The Nagakanaka Durga Prasad Chalavadi-founded company with a network of 54 stores in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, will make use of net fresh issue proceeds for the setting up of 30 new stores, and two warehouses. The working capital requirements and the repaying debts will also be done via net fresh issue money.
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