Sai Silks IPO Day 2: Muted response from investors, subscribed 11% so far

21 Sep 2023 , 12:21 PM

Sai Silks Kalamandir IPO is currently open for subscription, with the subscription period running from Wednesday, September 20, to Friday, September 22. The IPO has set a price range of Rs 210 to Rs 222 per equity share, each with a face value of Rs 2. Notably, the company successfully raised over Rs 360 crore from anchor investors on Monday, September 18. You can access the IPO subscription link here.

As of the end of the first day of the IPO, the subscription rate stood at 7%. By 12:10 AM on the second day, the IPO had received bids for 42,50,882 shares out of the total of 3,84,86,309 shares available for subscription, equating to 11%. The retail portion of the IPO garnered a subscription rate of 19%, while the non-institutional investors’ portion reached 7%.

The Rs 1,201-crore IPO, which opened on September 20, comprises a fresh issue of shares valued at Rs 600 crore and an offer-for-sale (OFS) of 2.7 crore equity shares worth Rs 601 crore by the promoter group.

Proceeds from the IPO will be utilized for several purposes, including setting up 30 new stores at an estimated cost of Rs 125.08 crore, establishing two warehouses with a budget of Rs 25.4 crore, and addressing working capital requirements amounting to Rs 280.07 crore. Additionally, Sai Silks Kalamandir plans to use a portion of the funds to repay its existing debt of Rs 50 crore.