Sai Silks Kalamandir, the latest entrant in the Indian IPO market, made its stock market debut today, garnering significant attention from investors. The company’s shares were listed on the National Stock Exchange (NSE) at ₹231 per share, representing a modest 4.1% premium over the issue price of ₹222. Simultaneously, on the Bombay Stock Exchange (BSE), Sai Silks Kalamandir’s share price commenced at ₹230 per share.
Sai Silks Kalamandir’s initial public offering (IPO) subscription period began on September 20 and concluded on September 22. The response from investors was positive, with the subscription status reaching 4.40 times by the third day. Retail investors showed strong interest, subscribing to 88% of their allotted portion, while the Non-Institutional Investors (NII) category was oversubscribed 2.47 times. Notably, the Qualified Institutional Buyers (QIB) category received full subscription, at 12.35 times.
Key Details of the Sai Silks Kalamandir IPO
The Sai Silks IPO consisted of a fresh issuance of ₹600 crore worth of shares, along with an offer for sale (OFS) of up to 2.70 crore equity shares by the promoter and promoter group. The company outlined its plans to utilize the net proceeds from the IPO for various purposes, including funding the establishment of 30 additional stores and two warehouses, meeting working capital requirements, debt repayment, and general corporate needs.
The book running lead managers for the IPO were Motilal Oswal Investment Advisors Ltd, HDFC Bank Ltd, and Nuvama Wealth Management Ltd. Bigshare Services Private Ltd served as the registrar for the offering.
Grey Market Premium (GMP) Update
In the grey market, Sai Silks IPO continued to attract investor interest, with a GMP of +8, consistent with the previous trading session. This suggests that Sai Silks Kalamandir shares were trading at an ₹8 premium in the grey market today. Considering the upper end of the IPO price band, this indicates an estimated listing price of ₹230 per share, reflecting a 3.6% increase over the IPO price of ₹222.
Notably, Sai Silks Kalamandir shares had a GMP of ₹0 on Sunday, September 17, indicating that shares were trading at the IPO issue price with no premium or discount in the grey market. The GMP for Sai Silks IPO has ranged from ₹0 to ₹14, reflecting investors’ willingness to pay above the issue price.
The “grey market premium” serves as an indicator of investor sentiment and their inclination to pay more than the IPO issue price for shares.
As Sai Silks Kalamandir embarks on its stock market journey, investors will closely monitor its performance, keeping an eye on potential price movements and market dynamics.