Hyderabad, Andhra Pradesh, India:Sai Silks (Kalamandir) Limited, the retailer of women’s, Kids and Men’s wear, has filed a Red Herring Prospectus (“RHP”) with SEBI / ROC for an initial public offer (“IPO”) to raise Rs. 89 crores.
The company is following a book building process and the price band has been set in the range of Rs 70 - 75 per share.
Out of the total proceeds from the issue Rs 12.73 Cr would be utilised towards setting up of Retail Outlets, Rs 0.91 cr would be towards pre-payment of term loan facility, Rs 8.50 cr towards brand promotion and Rs 59.99.Cr would be towards meeting the long term working capital requirements of the company.
The issue will open for subscription on Monday February 11, 2013 and close on Wednesday February 13, 2013.
The Promoters / Promoter group of the Company are providing Safety Net Scheme to Original Resident Retail Individual Allottees. Under this Scheme, if the market value of the equity shares falls below the Issue Price at any time during the Scheme Period, i.e. six months from the date of credit of the Equity Shares in the Demat account of the such allottees, the providers will buy only original allotted equity shares of the Company at the issue price upto a maximum of 1,000 equity shares per such allottees.
Original Resident Retail Individual Allottees
The promoter group of the company includes Mr. Chalavadi Naga Kanaka Durga Prasad and Mrs. Chalavadi Jhansi Rani and their immediate relatives.
The core business of Sai Silks (Kalamandir) is retailing of sarees, women dress materials, men & kids wear and sales of gold & silver jewellery. The company as on date has 15 retail outlets across Hyderabad, Guntur, Vijayawada, Bangalore, Kanchipuram and Hanumakonda with cumulative spread of over 1,29,035 sq.feet.
As of March 31st, 2012, the Net Worth of the company was at Rs. 47.65 crore. The company has reported total revenue of Rs.262.76 crore, out of which Rs. 163.02 crore revenue was from sarees, dress materials and other clothing and Rs. 99.50 crore was from gold, silver and diamond jewellery articles. The net profit for the same period was at Rs.11.69 crore.
The Issue is being made through the 100% Book Building Process wherein 10% of the Issue shall be allocated on a proportionate basis to Qualified Institutional Buyers (“QIB”) Bidders. 5% of the QIB Portion shall be available for allocation on a proportionate basis to Mutual Funds only, and the remainder of the QIB Portion shall be available for allocation on a proportionate basis to all QIB Bidders, including Mutual Funds, subject to valid Bids being received at or above the Issue Price. Further, not less than 35% of the Issue shall be available for allocation on a proportionate basis to Non-Institutional Bidders and not less than 55% of the Issue shall be available for allocation on a proportionate basis to Retail Individual Bidders, subject to valid Bids being received at or above the Issue Price. Qualified Institutional Buyers and Non-Institutional Investors are mandatorily required to apply through ASBA.
The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange Limited (“BSE”) and the National Stock Exchange of India Limited (“NSE”).
The Book Running Lead Managers (“BRLMs”) to the Issue are Ashika Capital Ltd. and Vivro Financial Services Pvt. Ltd.
Sai Silks (Kalamandir) Ltd. (the "Company") is proposing, subject to market conditions and other considerations, a public issue of its equity shares and has filed Red Herring Prospectus (“RHP”) with the Securities and Exchange Board of India (“SEBI”). Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see the section titled "Risk Factors" of the aforementioned RHP.
To view the photograph, please click on the link given below:
From left to right are Mr.Rajendra Kanoongo, Mr.Prasad Chalavadi CMD Kalamandir, Kalyan Annam, Anitha Sakuru & Jayesh Vithlani
Parimala Ananth, P R CAMP, +91 9980817197