Sai Silks gains 10.3%, SignatureGlobal soars 19% over issue price on debut

Shares of Sai Silks Kalamandir surged over 10 per cent on their trading debut on Wednesday, closing at Rs 245, a gain of Rs 23 or 10.3 per cent above its issue price of Rs 222. On the National Stock Exchange, nearly Rs 800 crore worth of shares were traded, valuing the company at Rs 3,755 crore at the last close. Through its Initial Public Offering (IPO), which was oversubscribed four times, the saree retailer raised Rs 600 crore in fresh capital.

The funds will be deployed to establish 30 new stores and two warehouses. As of July 2023, the company managed 54 stores across four formats: Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall. For the financial year ended 2022-23 (FY23), Sai Silks posted a net profit of Rs 97.6 crore on revenues of Rs 1,351 crore. An analyst highlighted that while Sai Silks is valued at 38 times its FY23 earnings, industry counterparts like Vedant Fashions and TCNS Clothing are trading at price-to-earnings multiples of 74x and 88x, respectively.

SignatureGlobal (SGL) made an impressive stock market debut, with shares soaring nearly 20 per cent to close at Rs 458, up Rs 73 or 19 per cent over its issue price of Rs 385. The company was valued at Rs 6,441 crore at the last close. The realty developer's IPO was oversubscribed 12 times, raising over Rs 600 crore. As of 31 March 2023, SGL had sold 27,965 residential and commercial units, all situated within the Delhi NCR region. In FY23, the company reported revenues of Rs 1,554 crore and a net loss of Rs 64 crore.