Sai Silks’ IPO to open on Sept 20

New Delhi: Ethnic apparel retailer Sai Silks (Kalamandir) Ltd on Wednesday said its initial share sale will open for public subscription on September 20.

The bidding for the anchor investors will open on September 18. The IPO of Sai Silks (Kalamandir) Ltd (SSKL) comprises fresh issue of equity shares aggregating up to Rs 600 crore and an Offer for Sale (OFS) component of up to 2.70 crore equity shares by promoters’ selling shareholders, according to the Red Herring Prospectus (RHP). The Hyderabad-based saree retailer is yet to announce the price band for the IPO, which will conclude on September 22. However, Sai Silks has revised its OFS size from 1.80 crore equity shares to 2.70 crore equity shares by promoters and promoter group entities.

Proceeds from the fresh issue worth up to Rs 125 crore will be used for funding capital expenditure towards setting up 30 new stores and up to Rs 25 crore for setting up two warehouses. Also, it plans to infuse up to Rs 280 crore for funding the working capital requirements of the company and up to Rs 50 crore for repayment or pre-payment, in full or part, of certain borrowings availed by the firm.