 "Sai Silks Kalamandir's Varamahalakshmi Store")
Sai Silks (Kalamandir) (SSKL) made a quiet debut on Wednesday with the company’s equity shares being listed at Rs 231 on the NSE, a 4 per cent premium over its issue price of Rs 222 per share. The stock listed at Rs 230.10 on the BSE.
At 10:10 AM; the stock was quoting at Rs 237, up 7 per cent over its issue price. In comparison, the Nifty 50 index was down 0.48 per cent at 19,571.
It touched an intra-day high of Rs 238 on the NSE and BSE, at the time of this report. Nearly 18 million equity shares of the company had changed hands on the exchanges in total.
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Sai Silks (Kalamadir) IPO had received a decent response from investors and was subscribed 4.47 times. The portion for qualified institutional buyers (QIB) was subscribed 12.17 times, non-institutional investors subscribed 2.54 times and the category for retail individual investors (RIIs) got 0.91 per cent subscription.
SSKL is among the leading ethnic and value fashion retail company in South India having a portfolio of established formats with focused sales and marketing strategy.
It has a strong presence in offline and online marketplace with an omnichannel network and is the leading apparel retail brand in India with a scalable model, which is well positioned to leverage growth in the ethnic and value-fashion apparel industry, it said.
The Indian ethnic wear business is a difficult business to replicate, given its high customer needs and complex inventory management. Dressing in ethnic wear is now a common trend not only at wedding celebrations but also country-wide festivals and other occasions and celebrations.
Production is in-house and through third parties and its entire supply chain and inventory management is system driven and algorithmically managed at every stage in its supply and distribution chain.
SSKL has a track record of consistent growth and profitability, and it is strategizing to expand its footprint with a plan to set up 25 new stores. The issue was at a P/E valuation of around 27.3x, which was fairly priced, according to analysts.
SSKL intends to continue to enhance the brand recall of products through the expansion of footprint digital marketing campaigns, brand ambassador content and outdoor advertising. This gives SSKL a strong competitive advantage in the women’s ethnic wear, strong margins and returns profile over the past few years, we expect consistent growth in its key metrics through its store expansion over the next few years, said analysts at Reliance Securities in an IPO note.
