The Rs 89-crore initial public offer of apparel retailer Sai Silks (Kalamandir) has received tepid response from investors and was subscribed by 87 per cent on the last day of the issue today.
The company received bids for 1.10 crore shares against an offer of 1.27 crore shares, translating into 87 per cent subscription till 05.00 p.m. today, as per data available on the National Stock Exchange (NSE).
Sai Silks, primarily into women's ethnic wear business, was aiming to garner Rs 89 crore with the IPO shares in the price band of Rs 70-75 apiece. The three-day issue closed today.
At the lower end of the price band, Sai Silks got a total subscription worth Rs 78 crore. The proceeds from the share sale would be utilised for setting-up retail outlets, brand promotion activities, term loan repayment and meeting working capital requirements.
The shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the NSE. The company would offer a "safety net" scheme to its prospective retail investors for six months after the close of the issue.
Under the safety net scheme, if the market value of the shares falls below the issue price at any time during scheme period, promoters would buy back shares at the sale price from original allottees. However, the buyback would be subject to a maximum of 1,000 equity shares per allottee.