JOIN USPublic issue of shares embedded with safety net scheme will soon be a reality when the promoters of Sai Silks (Kalamandir) Limited -- popularly known as Kalamandir -- come up with an initial public offer (IPO) next week by incorporating it for original resident retail individual allottees.
Sai Silks (Kalamandir), a saree retailer that currently has seven out of 15 outlets in Bangalore, will be launching its Rs 89 crore IPO to meet its long term working capital requirement and expansion plans including setting up four retail outlets in Vijayawada, Hyderabad, Nizamabad and Chennai.
The price band for the issue through the book building process has been fixed in the range of Rs 70-75 per share. The issue will open for subscription on Monday (February 11) and close on Wednesday.
Briefing the media on the safety net scheme of the IPO, its CMD Chalavadi Naga Kanaka Durga Prasad said on Thursday, if the market value of the equity shares falls below the issue price at any time during the scheme period -- which in this case is six months from the date of credit of the equity shares in the demat account of such allottees -- promoters will buy only original allotted equity shares at the issue price upto a maximum of 1,000 equity shares per such allottee.
It may be noted that promoter group of this company includes its CMD Prasad, Mrs Chalavadi Jhansi Rani and their immediate relatives.