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Sai Silks to enter capital market to raise Rs 89 cr

Source : BUSINESS_STANDARD
Last Updated: Sat, Feb 02, 2013 04:21 hrs

As of March 31, 2012, Sai Silks (Kalamandir) had a net worth of Rs 47.65 crore with total revenue of Rs 262.76 crore and net profit of Rs 11.69 crore

Hyderabad-based jewellery and textile player Sai Silks (Kalamandir) is planning to enter the capital market towards the end of February to raise Rs 89 crore. The proceeds of the issue will be used to fund the company’s expansion programmes and meet working capital needs.

Sai Silks (Kalamandir) is engaged in retailing of apparel for women, men and children, in addition to gold and silver jewellery. Besides 15 retail outlets spread across Hyderabad, Guntur, Vijayawada, Bangalore, Kanchipuram and Hanumakonda, the company is planning to set up four more retail outlets at an expenditure of Rs 12.73 crore to capture the rapidly growing consumer sentiment in India. Another Rs 8.50 crore is set to be incurred for brand promotion. The remaining funds will be used to meet the long-term working capital requirements of the company, said a senior company official.

As of March 31, 2012, Sai Silks (Kalamandir) had a net worth of Rs 47.65 crore with total revenue of Rs 262.76 crore and net profit of Rs 11.69 crore.

The proposed issue will be made through the 100 per cent book building process, wherein 10 per cent is scheduled to be allocated on proportionate basis to qualified institutional buyers (QIBs). Of this 10 per cent, five per cent will be available for allocation on proportionate basis to mutual funds.

Further, not less than 35 per cent of the issue will be available for allocation on proportionate basis to non-institutional bidders. Another 55 per cent of the issue will be available for allocation on proportionate basis to retail individual bidders.

The equity shares of the company are proposed to be listed on the Bombay Stock Exchange and the National Stock Exchange.

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



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