Sai Silks IPO opens on Feb 11

The company aims to raise Rs 89 crore

Textile and jewellery producer and retailer Sai Silks (Kalamandir) plans to enter the capital market on February 11 with an initial public offering (IPO) to raise Rs 89 crore. The issue closes on February 13.

From the proceeds of the issue, the company plans to invest Rs 12.73 crore to open four new retail outlets in the South India from its existing store strength of 15.

Apart from that a major chunk of Rs 59.99 crore from the issue proceeds would be invested as a long term working capital which remains a key in textile and jewellery business. In addition to that a sum of Rs 8.50 crore is earmarked for spend on brand promotion.

Prasad Chalavadi, managing director of the company, believes that the growing consumerism in India especially in the high-margin textile business would lead us to tremendous success especially. The company’s major strength remains in silk sarees which is a booming sector in Indian textile industry, he added.