Sai Silks Kalamandir gears up for IPO

By

Isabelle Crossley

Published
Jul 22, 2022

Clothing business Sai Silks (Kalamandir) is preparing to file its draft documents for its initial public offering with the Securities and Exchange Board of India and plans to raise between Rs 1,000 crore and Rs 1,200 crore. 

The business aims to raise the funds through a share sale and has appointed Motilal Oswal Financial, Edelweiss, and HDFC Bank as its bankers for the IPO, ET Bureau reported. The Hyderabad-based clothing business aims to use the IPO to give it the capital it needs to expand, anonymous sources close to the matter told the Economic Times. 
 
Sai Silks (Kalamandir) currently runs 45 brick-and-mortar stores in South India. The business’ flagship clothing brand is named Kalamandir and it counts retail outlets in states including Karnataka, Telangana, and Andhra Pradesh. 

The brand socialises in women’s ethnic wear, which contributes around 80% of its total sales. The business had previously planned to launch an IPO in 2013 but withdrew from the move. 
 
The second half of the 2022 financial year is expected to show steady growth for the brand, thanks to festive spending, according to ratings agency Care ratings. In the 2020 fiscal, Sai Silks saw its operating revenue increase by 13% to total Rs 1,177 crore before dropping to Rs 679 crore in the pandemic-stricken 2021 financial year.