Sai Silks (Kalamandir) Limited IPO

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i. Sai Silks is amongst the top 10 retailers of ethnic apparel, particularly sarees, in south India in terms of revenues and profit after tax in Fiscal 2020, 2021 and 2022. Through their four store formats, i.e., Kalamandir, VaraMahalakshmi Silks, Mandir and KLM Fashion Mall, they offer their products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value-fashion, with a variety of products across different price points, thereby catering to customers across all market segments.

ii. The company leverage its store network of 54 stores as of July 31, 2023, to focus on spreading India’s vibrant culture, traditions and heritage by offering 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 for women, men and children

iii. The share of organized retailing in apparel has increased from 14% in Fiscal 2007 to 32% in Fiscal 2020. The evolution of the market, in its current phase, represents distinct segmentation of channels of organized retail for apparel. This phase also represents emergence of category leaders in respective groups of western (formal and casual), Indian, and athleisure (Source: Technopak Report). Historically, the ethnic retail trade of sarees was dominated by unorganized players in small format stores with a very few organized players.

iv. The company believe that stores provide a unique experience and customer service, which combined with their inventory and variety of SKUs that they offer, enables them to attract and retain a growing customer base that, as of July 31, 2023, exceeded over 5.98 million customers in India.

v. Our ethnic wear and value-fashion products are available through our stores under four different format stores, i.e., Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall, as well as through e-commerce channels comprising our own website and other online e-commerce marketplaces.

Value Proposition

i. Variety of Products and Stock Keeping Units
ii. Design
iii. Store Aesthetics and Interiors

Marketing and Sales

They produce distinctive and unique marketing campaigns to generate high customer engagement. The company believes their focus on quality, customer service, product range and customer-oriented policies together with the celebrity endorsements, targeted marketing and arrangements with local artisans to address regional preferences, have enabled us to develop strong brand recognition and customer loyalty.

Competitive Strengths

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 in India.
Strong presence in offline and online marketplace with an omni-channel network.
Track record of growth, profitability and unit economics with an efficient operating model.
Experienced Promoter, management and in-house teams with proven execution capabilities.

Objects of the Sai Silks (Kalamandir) Limited IPO:

The company intends to utilize the net proceeds from the issue towards the funding of the following objects: i. Funding capital expenditure towards setting up 25 new stores. ii. Funding capital expenditure towards setting-up of two warehouses. iii. Funding the working capital requirements of the company. iv. Repayment or pre-payment, in full or part, of certain borrowings availed by the company. v. General corporate purposes. The total number of shares issue is: - a. Fresh issue is 27,027,027 shares. b. Offer for sale is 27,072,000 shares.

Sai Silks (Kalamandir) Limited IPO Details:

Open Date: Sep 20 2023
Close Date: Sep 22 2023
Total Shares: 54,099,027
Face Value: ₹ 2 Per Equity Share
Issue Type: Book Built Issue IPO
Issue Size: 1,201 Cr.
Lot Size: 67 Shares
Issue Price: ₹ 210 - 222 Per Equity Share
Listing At: NSE,BSE
Listing Date: Oct 04 2023

Promoters And Management:

Ravindra Vikram Mamidipudi is the Chairman & Independent Director of the Company. He has been a Director of the Company since February 18, 2022. He is a fellow member of the Institute of Chartered Accountants of India. He has approximately four decades of experience in finance sector. He is a partner at M. Anandam & Co., Chartered Accountants since 1981. Nagakanaka Durga Prasad Chalavadi is the Managing Director of the Company. He is also one of the Promoters of the Company and has been associated with the Company since its incorporation. He holds a bachelor’s degree in commerce from Nagarjuna University and master’s degree in Business Administration from Institute of Management Education, Pune. He also holds post graduate diploma in computer applications from Institute of Computer Software Sciences. He has more than 16 years of experience in the retail sector, including as one of the partners of the erstwhile partnership firm under the name ‘Sai Silks’ (now converted into the Company) and is responsible for the overall management, finance, internal controls and security systems of the Company. Kalyan Srinivas Annam is the Whole-time Director of the Company and has been associated with the Company since 2009. He holds a bachelor’s degree in law from Nagarjuna University and a post graduate diploma in business management from Institute of Marketing and Management, New Delhi. He has approximately 15 years of experience in the retail business, including as one of the partners of the erstwhile partnership firm under the name ‘Sai Silks’ (now converted into the Company). He has received certificate of appreciation for his outstanding contribution in fastest growing unique ethnic wear group and for being part of ET change makers on July 20, 2022. He is responsible for projects, strategic planning, brand building and business development of the Company and leads all related media and advertising activities for the Company. He is also responsible for the legal administration activities of the Company.

Financials of Sai Silks (Kalamandir) Limited IPO:

A. Balance Sheet
Particular (In Million) Mar-21 Mar-22 Mar-23
Equity Share Capital 240.65 240.65 240.65
Reserves 2,189 2,766 3,733
Borrowings 2,172 2,605 3,455
Trade Payables 1,076 1,291 2,300
Other Liabilities 976 1,522 2,476
Total Liabilities 4,224 5,418 8,231
Net Block 1,587 1,632 2,047
Capital Work in Progress 21 0 0
Other Assets 952 1,186 2,110
Total NC Assets 2,561 2,817 4,157
Receivables 23 19 29
Inventory 3,670 4,764 6,897
Cash & Bank 229 470 497
Other Assets 172 354 624
Face value 2 2 2
B. Profit & Loss Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Sales 6,772 11,293 13,515
Purchases of Stock In Trade 4,452 8,472 10,356
Change in Inventory 17 -1,093 -2,130
Employee Cost 866 1,028 1,408
Other Expenses 815 1,557 1,755
EBITDA 642 1,367 2,200
EBITDA Margin 9.48% 12.11% 16.28%
Other Income 18 37 75
Depreciation 295 308 410
Interest 274 286 454
Profit before tax 73 773 1,336
Tax 22 196 360
Net profit 51 577 976
NPM (%) 0.76% 5.09% 7.18%
C. Cash Flow Statement
Particular (In Million) Mar-21 Mar-22 Mar-23
Cash From Operating Activity
Profit From Operation 685 1,456 2,240
Receivable -6 4 -10
Inventory 45 -1,095 -2,133
Payable -625 215 1,009
Other WC Items -202 -105 -234
Working Capital Changes -787 -981 -1,368
Direct Taxes -49 -19 -459
Net Cash Inflow from Operating Activity -152 456 412
Cash from Investing Activity
Fixed assets purchased -55 -253 -601
Other investing items -124 -167 -0.3
Net cash inflow from investing activities -180 -420 -601
Cash from Financing Activity
Proceeds from shares 61 0 0
Proceeds from borrowings 0 -87 0
Repayment of borrowings 525 520 850
Intrest paid fin -268 -272 -433
Other financing items -124 -154 -268
Net Cash Flow -138 43 -40

Comparison With Peers:

Name of the Company Revenue (In Crore) PAT (In Crore) EPS ( in Rs) P/E CMP Mcap (In Crore)
Sai Silks (Kalamandir) Limited 1351 98 6.36 34.9 222 3405
Vedant Fashions Limited 1355 429 17.67 75.9 1314 31902
TCNS Clothing Co. Limited 1,202 -18 -2.84 N/A 380 2,403
Go Fashion (India) Limited 665 83 15.33 88.6 1,388 7,496
Aditya Birla Fashion and Retail Limited 12,418 -59 -0.38 N/A 225 21,382
Shoppers Stop Limited 4,022 116 10.58 71.2 707 7,772
Trent Limited 8,242 394 12.51 164 2,070 73,595
* All the data is as per FY23.

Recommendation on Sai Silks (Kalamandir) Limited IPO:

Review and Recommendation of Sai Silks (Kalamandir) Limited IPO by IZ team is 6/10

A) Foundation and Growth:

1. Sai Silk was founded in 2005, initially operating under the brand name Kala Mandir and focusing on women's ethnic clothing. 2. The company has successfully expanded its presence to 54 stores in four South Indian states: Andhra Pradesh, Telangana, Tamil Nadu, and Karnataka. 3. The organization has grown from 50 to over 5,000 employees within the last three years. 4. Revenue has escalated impressively from 10 crores in the first year to 1352 crores in the previous year.

B) Business Formats:

1. Kala Mandir: Targets the middle-income class segment, focusing on women's ethnic wear. 2. Brand Mandir: Targets the Ultra Premium Niche designer segment. 3. Kanchipuram Varamaha Lakshmi Silks: Specializes in silk sarees and handlooms, primarily for weddings and special occasions. 4. KLM Fashion Mall: A hybrid value fashion mall catering to the entire family.

C) Financials and Valuation:

1. Sales: Increased from 677 Cr in Mar-21 to 1351 Cr in Mar-23. 2. EBITDA Margin: Improved from 9.48% in Mar-21 to 16.28% in Mar-23. 3. Net Profit Margin (NPM): Increased from 0.76% in Mar-21 to 7.18% in Mar-23. 4. P/E Ratio: 34.9, relatively lower than some competitors like Go Fashion (India) Limited and Trent Limited.

D) Market Comparison:

1. Vedant Fashions Limited: Although similar in revenue, Vedant has a significantly higher Market Cap. 2. TCNS Clothing Co. Limited: Recorded a negative PAT and EPS in Fy23. 3. Go Fashion (India) Limited: Lower revenue but a higher Market Cap and EPS. 4. Aditya Birla Fashion and Retail Limited: Significantly higher revenue but a negative PAT and EPS. So, overall valuation looks decent as compared to listed players.

E) Geographical Presence:

1. 23 stores in Hyderabad, Telangana 2. 9 stores in Bangalore, Karnataka 3. 4 stores in Kanchipuram and Chennai, Tamil Nadu 4. 16 present in Andhra Pradesh

F) Future Plans:

1. Intends to use 400 crores out of 600 crores raised through IPO for opening 30 new stores primarily around Chennai and Tamil Nadu. 2. The company plans to focus on expanding in the South, particularly in Tamil Nadu, in the next three years.

G) Technology Adoption:

The company leverages technology, AI, and ML for data-driven decision-making, giving it a competitive edge.


1. Diverse Business Formats: Sai Silk has diversified its business into four different formats, catering to a broad range of customers. 2. Strong Regional Presence: With 54 stores across four South Indian states, the company has a significant footprint in its target market. 3. Impressive Growth: From revenue to employee count, the growth metrics are robust.


1. Limited Geographical Spread: The company has not yet explored markets beyond South India. 2. Dependence on Ethnic Wear: Although diverse, the product portfolio heavily leans on women’s ethnic wear, primarily sarees, which make up 67% of their revenue. 3. Untapped Markets: Despite a considerable presence, the company is yet to tap into the markets of Kerala. 4. Niche Focus: The focus on very specific segments like silk sarees and ultra-premium niche designer segments might limit mass-market appeal.
In summary, Sai Silk appears to be a growing, strategically-planned company with clear objectives for the future. Their strengths lie in their diverse business formats, technology adoption, and robust growth, while their weaknesses center around their limited geographical presence and product focus.

Registrar of Sai Silks (Kalamandir) Limited IPO:

  1. Bigshare Services Private Limited

Company Address:

Sai Silks (Kalamandir) Limited 6-3-790/8, Flat No. 1 Bathina Apartments, Ameerpet Hyderabad - 500 016 Phone: +91 40 6656 6555 Email: Website

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