Sai Silks reports significant profit rise, plans to open new stores with IPO funds By Investing.com


© Reuters.

In a turn of events on Tuesday, Sai Silks (Kalamandir) Ltd (NS:) reported a 69.1% net profit rise and a 19.7% revenue increase for the financial year 2023. The company successfully raised INR 1,201 crore through an initial public offering (IPO), which was backed by global marquee investors.

The funds procured from the IPO are set to be utilized for opening 30 new stores and clearing a debt of INR 50 crore. Despite the company’s impressive performance metrics, including a price-to-earnings (P/E) valuation of 27.3x and a subscription rate of 4.47 times, analysts forecast a flat market debut.

Additionally, the company demonstrated a robust operational performance with a 60% jump in earnings before interest, tax, depreciation, and amortization (EBITDA). However, this did not sway market analysts’ predictions of a subdued entry into the market.

The successful IPO and the planned expansion indicate Sai Silks’ strategic move towards growth and debt reduction. However, the market response to these developments remains to be seen in the coming days.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

fundsInvesting.comIPOOpenPlansprofitReportsRiseSaiSignificantSilksstores
Comments (0)
Add Comment