Hyderabad-based jewellery and textile player Sai Silks (Kalamandir) is planning to enter the capital market towards the end of February to raise Rs 89 crore for various expansion programmes and working capital needs.
Engaged in retailing of women’s, kids and men’s wear in addition to gold jewellery, the company is looking to set up four additional retail outlets at an expenditure of Rs 12.73 crore to capture the rapidly growing consumer sentiment in India.
Another Rs 8.50 crore is set to be incurred for brand promotion and the remaining for meeting the long term working capital requirement, said a senior company official.
The core business of Sai Silks (Kalamandir) is retailing of sarees, women dress materials, men & kids wear and sales of gold and silver jewellery. The company as on date has 15 retail outlets across Hyderabad, Guntur, Vijayawada, Bangalore, Kanchipuram and Hanumakonda.
As of March 31st, 2012, the net worth of the company stood at Rs 47.65 crore with its total revenue of Rs 262.76 crore and net profit at Rs 11.69 crore.
The proposed issue is being made through the 100% book building process wherein 10% scheduled to be allocated on a proportionate basis to qualified institutional buyers (QIB) bidders.
Another 5% of the QIB portion shall be available for allocation on a proportionate basis to mutual funds only, and the remainder for allocation on a proportionate basis to all QIB bidders.
Further, not less than 35% of the issue shall be available for allocation on a proportionate basis to non-institutional bidders. Another 55% of the issue shall be available for allocation on a proportionate basis to retail individual bidders.
The Equity Shares of the Company are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
The Book Running Lead Managers to the Issue are Ashika Capital Ltd. and Vivro Financial Services Pvt. Ltd.
