Saree retailer Sai Silks gets Sebi nod for IPO

The largest retailer of ethnic apparel, Sai Silks (Kalamandir), has received Sebi’s go-ahead to raise funds through an initial public offering (IPO). Sai Silks, with saree as its main product, operates via four store formats, including Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall.

As per the draft red herring prospectus (DRHP), the IPO comprises a fresh issue of equity shares aggregating up to Rs 600 crore and an offer for the sale of 18,048,440 equity shares by promoters and promoter group entities. The market sources estimate the issue size to be at Rs 1,200 crore.

This would be India's first IPO by a saree company.


The company will use the IPO proceeds towards funding capital expenditure for setting-up of 25 new stores, two warehouses, financing working capital requirements of the company, repayment or pre-payment, in full or part, of certain borrowings availed by the company and general corporate purposes.

Promoted by Nagakanaka Durga Prasad Chalavadi and Jhansi Rani Chalavadi, Hyderabad-based Sai Silks (Kalamandir) offers one of the widest portfolios of saree stock keeping units (SKUs) among women’s apparel brands in India. It also offers a diverse range of products which includes various types of ultra-premium and premium sarees suitable for weddings, party wear, as well as occasional and daily wear, lehengas, men’s ethnic wear, children’s ethnic wear and value fashion products comprising fusion wear and western wear.

The book-running lead managers (BRLMs) to the IPO are Motilal Oswal Investment Advisors, Edelweiss Financial Services and HDFC Bank.

Shares of the company are proposed to list on both BSE and NSE.