Sai Silks (Kalamandir) Limited Initial Public Offer to open on September 20, 2023

(L-R) Mr. John Perinchery, Senior Group Vice President, Motilal Oswal Investment Advisors Limited; Mr. K.V.L.N. Sarma, Chief Financial Officer, Sai Silks (Kalamandir) Limited; Mr. Prasad Chalavadi, Founder & Managing Director, Sai Silks (Kalamandir) Limited; Mr. Bharadwaj Rachamadugu, Senior Vice President, Sai Silks (Kalamandir) Limited; Mr. Mitul Shah, Head – Equity Capital Market, HDFC Bank Limited and Mr. Sachin Khandelwal, Executive Director & Co-Head - ECM, Corporate Finance, Nuvama Wealth Management Limited at a press conference in Mumbai to announce Sai Silks (Kalamandir) Limited’s forthcoming Initial public Offer (IPO).

• Price Band fixed at ₹ 210 to ₹ 222 per Equity Share of face value of ₹ 2 each;

• The Floor Price is 105 times and the Cap Price is 111 times the face value of the Equity Shares;

• Bid/ Offer will open on Wednesday, September 20, 2023 and close on Friday, September 22, 2023. The Anchor Investor Bidding Date shall be Monday September 18, 2023;

• Bids can be made for a minimum of 67 Equity Shares and in multiples of 67 Equity Shares thereafter

National, September, 14th 2023: Sai Silks (Kalamandir) Limited (the “Company”), shall open its initial public offer of Equity Shares on Wednesday September 20, 2023. The initial public offering comprises of a fresh issue of Equity Shares aggregating up to ₹ 6,000 million (the “Fresh Issue”) and an offer for sale up to 27,072,000 Equity Shares by Selling Shareholders (the “Offer for Sale” and together with the Fresh Issue, the “Offer”). 

The Anchor Investor Bidding Date shall be Monday, September 18, 2023.  The Offer will open on Wednesday, September 20, 2023 for subscription and will close on Friday, September 22, 2023.

The Price Band of the Offer has been fixed at ₹ 210 to ₹ 222 per Equity Share. Bids can be made for a minimum of 67 Equity Shares and in multiples of 67 Equity Shares thereafter.

The Company proposes to utilize the proceeds raised through the Fresh Issue towards - Funding capital expenditure towards setting-up of 30 new stores (“New Stores”) amounting to Rs. 1,250.84 million; Funding capital expenditure towards setting-up of two warehouses amounting to Rs. 253.99 million; Funding working capital requirements of our Company amounting to Rs. 2,800.67 million; Repayment or pre-payment, in full or part, of certain borrowings availed by our Company amounting to Rs. 500 million and balance amount for general corporate purposes.

The Offer for Sale comprises of up to 6,409,345 Equity Shares by Nagakanaka Durga Prasad Chalavadi; up to 7,949,520 Equity Shares by Jhansi Rani Chalavadi (collectively, “the Promoter Selling Shareholders”), up to 3,083,865 Equity Shares by Dhanalakshmi Perumalla, up to 656,295 Equity Shares by Doodeswara Kanaka Durgarao Chalavadi,  up to 6,346,975 Equity Shares  by Kalyan Srinivas Annam, up to  2,120,500 Equity Shares by Subash Chandra Mohan Annam and up to 505,500 Equity Shares by Venkata Rajesh Annam. 

The Equity Shares are being offered through the Red Herring Prospectus (“RHP”) dated September 13, 2023, and are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”). For the purposes of this Offer, BSE Limited shall be the Designated Stock Exchange.

The Offer is being made through the Book Building Process, in terms of Rule 19(2)(b) of the Securities Contracts (Regulation) Rules, 1957, as amended (the “SCRR”), read with Regulation 31 of the Securities and Exchange of India (Issue of Capital and Disclosure Requirements) Regulations, 2018 (“SEBI ICDR Regulations”) and in compliance with Regulation 6(1) of the SEBI ICDR Regulations wherein not more than 50% of the Offer shall be available for allocation on a proportionate basis to Qualified Institutional Buyers (“QIBs”, and such portion, “QIB Portion”) provided that our Company may, in consultation with the book running lead managers (BRLMs), allocate up to 60% of the QIB Portion to Anchor Investors on a discretionary basis in accordance with the SEBI ICDR Regulations (“Anchor Investor Portion”), of which one-third shall be reserved for domestic Mutual Funds, subject to valid Bids being received from domestic Mutual Funds at or above the price at which allocation is made to Anchor Investors (“Anchor Investor Allocation Price”). 

Further, 5% of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis only to Mutual Funds and the remainder of the QIB Portion (excluding the Anchor Investor Portion) shall be available for allocation on a proportionate basis to all QIBs (other than Anchor Investors), including Mutual Funds, subject to valid Bids being received at or above the Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Bidders (“Non-Institutional Category”) of which (a) one-third of the Non-Institutional Category shall be available for allocation to Bidders with an application size of more than ₹ 200,000 and up to ₹ 1,000,000 and (b) two-thirds of the Non-Institutional Category shall be available for allocation to Bidders with an application size of more than ₹ 1,000,000, and under-subscription in either of these two sub-categories of Non-Institutional Category may be allocated to Bidders in the other sub-category of Non-Institutional Category in accordance with the SEBI ICDR Regulations, subject to valid Bids being received at or above the Offer Price. Further, not less than 35% of the Offer shall be available for allocation to Retail Individual Investors (“Retail Category”), in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. 

Motilal Oswal Investment Advisors Limited, HDFC Bank Limited and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) are the BRLMs to the offer.

All capitalised terms referred to in this press release that have not been defined shall have the same meaning as prescribed in the RHP.

Disclaimer:

SAI SILKS (KALAMANDIR) LIMITED is proposing, subject to receipt of requisite approvals, market conditions and other considerations to undertake an initial public offer of its Equity Shares and has filed the RHP with RoC. The RHP is available on the website of SEBI at www.sebi.gov.in as well as on the websites of the Stock Exchanges, i.e., BSE at www.bseindia.com and NSE at www.nseindia.com, the Company at www.sskl.co.in and is available on the website of the BRLMs , i.e., Motilal Oswal Investment Advisors Limited at www.motilaloswalgroup.com, HDFC Bank Limited at www.hdfcbank.com and Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) at www.nuvama.com. Any potential investor should note that investment in equity shares involves a high degree of risk and for details relating to such risk, see “Risk Factors” beginning on page 28 of the RHP. Potential investors should not rely on the DRHP dated July 21, 2022 or the addendum to the DRHP dated July 25, 2023 filed with SEBI in making any investment decision.

The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws in the United States, and unless so registered, may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold outside the United States in ‘offshore transactions’ in reliance on Regulation S and the applicable laws of each jurisdictions where such offers and sales are made. There will be no public offering of the Equity Shares in the United States.