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Sai Silks IPO subscribed 50% on first day

The proceeds from the share sale would be utilised for setting-up retail outlets, brand promotion activities

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Press Trust of India Mumbai
Last Updated : Feb 11 2013 | 6:35 PM IST
The initial public offer of apparel retailer Sai Silks (Kalamandir) was subscribed 50% on the first day of issue today.

The Rs 89-crore IPO of Sai Silks received bids for 62.98 lakh shares against 1.27 crore shares on offer, translating into 50 per cent subscription till 1700 hrs today, as per data available on the NSE.

The company, primarily into women's ethnic wear business, is aiming to garner Rs 89 crore with the IPO shares in the price band of Rs 70-75 apiece. The issue would close on February 13.

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The proceeds from the share sale would be utilised for setting-up retail outlets, brand promotion activities, term loan repayment and meeting working capital requirements.

The shares are proposed to be listed on the BSE and the National Stock Exchange.

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

The Hyderabad-based company would offer a safety net scheme to its prospective retail investors for six months after the close of the issue.

Under the safety net scheme, if the market value of the shares falls below the issue price at any time during scheme period, promoters would buyback shares at the sale price from original allottees. However, the buyback would be subject to a maximum of 1,000 equity shares per allottee.

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First Published: Feb 11 2013 | 6:32 PM IST

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