Sai Silks Kalamandir Secures Rs 360.3 Crore from Anchor Investors Ahead of IPO Launch

18 Sep 2023 , 10:11 PM

Andhra Pradesh-based Sai Silks Kalamandir successfully raised Rs 360.3 crore from 26 anchor investors on September 18, just a day ahead of the launch of its public issue.

Distinguished global investors, including Societe Generale, Citigroup Global Markets Mauritius, HSBC, and BNP Paribas Arbitrage, participated in the anchor book. Additionally, prominent domestic players like SBI Mutual Fund, ICICI Prudential Mutual Fund, Whiteoak Capital, Eastspring Investments India, HDFC Mutual Fund, Kotak Mahindra Trustee, Aditya Birla Sun Life Trustee, Abakkus Growth Fund, and Mirae Asset India also showed their confidence in the company by investing via the anchor book.

Out of the total allocation of shares to anchor investors, 1,17,24,694 shares were assigned to 8 domestic mutual funds through a total of 16 schemes.

Sai Silks Kalamandir, founded by Nagakanaka Durga Prasad Chalavadi, confirmed to the exchanges that it had allocated 1,62,29,707 equity shares to anchor investors at a price of Rs 222 per share.

The upcoming public issue comprises a fresh issue of shares worth Rs 600 crore by the company and an offer-for-sale (OFS) of 2,70,72,000 equity shares by the promoter group.

The price band for the offering, set to be open for subscription from September 20 to 22, has been fixed at Rs 210-222 per share.

The ethnic apparel retailer, renowned for its sarees in South India, intends to utilize the net proceeds from the fresh issue for various purposes. This includes establishing 30 new stores at an estimated cost of Rs 125.08 crore, constructing two warehouses with an expenditure of Rs 25.4 crore, and addressing working capital requirements totaling Rs 280.07 crore. Furthermore, the company plans to use the proceeds to repay its existing debt amounting to Rs 50 crore.