SAI SILKS (KALAMANDIR) LIMITED

SAI SILKS (KALAMANDIR) LIMITED - IPO DETAILS 

Company Overview 

Establishing its operations in 2005, the company has positioned itself as one of the top 10 retailers of ethnic apparel, particularly sarees, in southern India, based on revenue and post-tax profit figures for Fiscal 2020, 2021, and 2022. The company's presence is facilitated through four distinct store formats, namely Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall, boasting a total of 54 stores as of July 2023. These stores are strategically located across four southern Indian states: Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. Furthermore, the company actively engages with customers through e-commerce channels, including its website and various online e-commerce marketplaces. 

The company effectively caters to a wide spectrum of market segments, encompassing premium ethnic fashion, ethnic fashion for the middle-income demographic, and value fashion. This diverse product range spans various price points, ensuring accessibility for customers across all market segments. 

The extensive product catalog offered by the company comprises a variety of items, including ultra-premium and premium sarees suitable for weddings, party wear, occasional use, and everyday wear. Additionally, they provide lehengas, men's ethnic clothing, children's ethnic attire, as well as value fashion products that encompass fusion wear and western wear for women, men, and children. This comprehensive product range reflects the company's commitment to meeting the fashion needs of a broad and diverse customer base. 

Objective of the IPO 

Here are a few quick reasons why Sai Silks (Kalamandir)Limited going public:  

1. The company intends to utilize funds to finance the capital requirements associated with establishing 25 new stores. 

2. Another portion of the funds will be set aside for capital expenditure to create two warehouses. 

3. A portion of the funds will be reserved to fulfill the company's working capital requirements. 

4. The company plans to utilize a portion of the funds to either fully or partially repay certain loans it has previously obtained. 

5. Allocating funds for overarching corporate needs and objectives. 

Company Financials 

Key Performance Indicator 

Pros 

1. The company boasts a robust presence in both physical and digital marketplaces, utilizing an omnichannel network. 

2. The company conducts its operations through four distinct store formats: Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall, strategically catering to and accommodating the preferences of specific customer segments in each store. 

3. The company offers a diverse array of products, effectively catering to the varied preferences of its customer base. 

4. The company possesses a robust presence and holds significant brand value in the southern states of India. 

Cons 

1. The company's primary focus is on the sale of women's sarees, which makes it susceptible to fluctuations in demand and shifts in consumer preferences. These factors could potentially negatively impact the business. 

2. The majority of the company's operations are situated in South India, and any adverse developments in these regions could potentially impact its business and profitability.  

3. The business segment in which the company operates has relatively low barriers to entry and exit, leading to heightened competition for the company. 

How to Apply for this IPO 

1. Go to https://ipo.adityatrading.in/ 

2. Enter your Client ID 

3. Enter the OTP received in your registered mobile number. 

4. Choose the IPO and click on apply button. 

5. Enter the UPI ID, Quantity, and Cut off the price. 

6. Click on submit button 

7. Confirm the mandate request received on your phone by entering the UPI Pin. 

You can also watch our youtube video on “How to Apply on IPO” by clicking on the link “https://www.youtube.com/watch?v=1qOI8dCpl1I&ab_channel=ATS”