Sai Silks (Kalamandir) Limited Initial Public Offer to open on September 20, 2023

National, September, 16^th 2023: Sai Silks (Kalamandir) Limited (the “Company”), shall open its initial public offer of Equity Shares on Wednesday September 20, 2023. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to ₹ 6,000 million (the “Fresh Issue”) and an offer for sale up to 27,072,000 Equity Shares by Selling Shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”).

The Anchor Investor Bidding Date shall be Monday, September 18, 2023.  The Offer will open on Wednesday, September 20, 2023 for subscription and will close on Friday, September 22, 2023.

The Price Band of the Offer has been fixed at ₹ 210 to ₹ 222 per Equity Share. Bids can be made for a minimum of 67 Equity Shares and in multiples of 67 Equity Shares thereafter.

The Company proposes to utilize the proceeds raised through the Fresh Issue towards – Funding capital expenditure towards setting-up of 30 new stores (“New Stores”) amounting to Rs. 1,250.84 million; Funding capital expenditure towards setting-up of two warehouses amounting to Rs. 253.99 million; Funding working capital requirements of our Company amounting to Rs. 2,800.67 million; Repayment or pre-payment, in full or part, of certain borrowings availed by our Company amounting to Rs. 500 million and balance amount for general corporate purposes.

The Offer for Sale comprises of up to 6,409,345 Equity Shares by Nagakanaka Durga Prasad Chalavadi; up to 7,949,520 Equity Shares by Jhansi Rani Chalavadi (collectively, “the Promoter Selling Shareholders”), up to 3,083,865 Equity Shares by Dhanalakshmi Perumalla, up to 656,295 Equity Shares by Doodeswara Kanaka Durgarao Chalavadi,  up to 6,346,975 Equity Shares  by Kalyan Srinivas Annam, up to  2,120,500 Equity Shares by Subash Chandra Mohan Annam and up to 505,500 Equity Shares by Venkata Rajesh Annam.

SSKL, promoted by Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi, is amongst the top 10 retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit after tax in Fiscal 2020, 2021 and 2022 as per a Technopak Report. Through its four store formats; i.e., Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall, it offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion.

As of July 31, 2023, it operated 54 stores in four major south Indian states, i.e., Andhra Pradesh, Telangana, Karnataka and Tamil Nadu, with an aggregate area of approximately 603,414 square feet.

For the financial year ended on March 31, 2023, SSKL reported a total revenue of Rs. 1351 crore with a net profit at Rs. 97.6 crore.

The Equity Shares are being offered through the Red Herring Prospectus (“RHP”) dated September 13, 2023, and are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). For the purposes of this Offer, BSE Limited shall be the Designated Stock Exchange.

Motilal Oswal Investment Advisors Limited, HDFC Bank Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the BRLMs to the offer.