Sai Silks (Kalamandir) Limited Secures Extension for IPO Proceeds Utilization
Sai Silks (Kalamandir) Limited announced on March 29, 2026, that its Audit Committee and Board of Directors have approved an extension for the timeline to utilize the remaining proceeds from its Initial Public Offering (IPO). The company had raised Rs. 566.23 crore (net of IPO expenses) through the IPO, which concluded on September 23, 2023, with an initial utilization timeline extending to March 31, 2026.The extension is primarily due to optimization in capital utilization and resulting savings. Sai Silks (Kalamandir) has exceeded its targeted retail footprint, expanding by approximately 28% over the planned retail space, adding a total of 1,82,652 sq. ft. compared to the initially envisaged 1,42,500 sq. ft. While 25 stores have been operationalized compared to the initial plan of 30, the company has fully achieved and surpassed the targeted retail area expansion.
As of March 28, 2026, Rs. 39.86 crore remains unutilized from the IPO proceeds. The breakdown of the IPO proceeds utilization status is detailed below:
| Object of the Issue | Amount as per Prospectus (Rs. in Cr) | Amount Unutilized (Rs. in Cr) |
|---|---|---|
| Funding capital expenditure towards setting up of 30 new stores | 125.08 | 19.19 |
| Funding capital expenditure towards setting up of two warehouses | 25.4 | 20.67 |
| General Corporate Purposes | 280.06 | 0 |
| Repayment or pre-payment of borrowings | 50 | 0 |
| General Corporate Purposes | 85.68 | 0 |
| Total | 566.23 | 39.86 |
The company plans to deploy the extended funds, amounting to Rs. 39.86 crore, towards setting up four additional stores – three under the Kalamandir format in Karnataka and one under the Varamahalakshmi Silks format in Andhra Pradesh – and establishing a warehouse facility in Kanchipuram, Tamil Nadu. The timeline extension is for a period of six months, up to September 30, 2026. Approval for this extension does not require shareholder approval. Sai Silks (Kalamandir) will continue to submit quarterly monitoring reports to the stock exchanges.
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