Sai Silks gets Sebi nod to float IPO; eyes to raise up to Rs 1,200-crore Ethnic apparel retailer Sai Silks (Kalamandir) Limited has received capital markets regulator Sebi’s go ahead to raise as much as Rs 1,200 crore through an initial public offering (IPO).The IPO comprises fresh issue of equity shares worth Rs 600 crore and an offer-for-sale of up to 18,048,440 equity shares by promoters and promoter group entities, according to the draft red herring prospectus (DRHP). The company, which filed preliminary IPO papers with the markets watchdog in July, obtained its observation letter on November 7, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday. In Sebi’s parlance, obtaining its observation letter implies a go ahead to float an IPO. The net proceeds of the fresh issue will be used for setting-up of 25 new stores, two warehouses, to support working capital requirements, payment of debt and for general corporate purposes. As per market sources, the issue size is expected to be Rs 1,200 crore. Motilal Oswal Investment Advisors, Edelweiss Financial Services and HDFC Bank are the book-running lead managers to the issue. The equity shares are proposed to be listed on BSE and National Stock Exchange (India) Limited. Through its four store formats — Kalamandir, VaraMahalakshmi Silks, Mandir, and KLM Fashion Mall — Sai Silks offers products to various segments of the market that include premium ethnic fashion, ethnic fashion for middle income and value fashion. Also read| Unicorn startup Darwinbox may go for IPO in next 3 years: Co-founder The company currently operates 50 stores in four major south Indian states — Andhra Pradesh, Telangana, Karnataka and Tamil Nadu.Meanwhile, one more company, KFin Technologies, has secured Sebi’s approval to float an IPO.Financial services platform KFin Technologies had filed preliminary IPO papers with Sebi on March 31, and obtained its letter on November 7.Going by draft papers, the Rs 2,400-crore IPO is entirely an offer-for-sale by promoter General Atlantic Singapore Fund Pte. Ltd. The company will not receive any proceeds from the offer as all of it will go to the promoter selling shareholder.KFin is majority owned by funds managed by General Atlantic, a leading global private equity investor, which holds a 74.94 per cent stake in the company. Last year, Kotak Mahindra Bank had acquired a 9.98 per cent stake in the company.
2. Warren Buffett talked about his business partner Charlie Munger in his letter. He said they both think alike but what it takes Warren Buffett a page to explain, Charlie Munger sums up in a sentence. Charlie Munger’s version, moreover, is always more clearly reasoned.
The lesson for investors: “I will add to Charlie’s list a rule of my own: Find a very smart high-grade partner – preferably slightly older than you – and then listen very carefully to what he says,” Warren Buffett said.
3. Warren Buffett emphasised that his long-time business partner Charlie Munger and he are business pickers, not stock pickers. He further said that efficient markets exist only in textbooks.
“We own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business pickers,” Warren Buffett said.
Logistics, good or bad, are driven by the states and the commerce ministry has a LEADS (Logistics Ease Across Different States) report, based on perceptions. The 2023 version was released in December. Since states are heterogenous, in the reporting, they are divided into four groups—coastal, landlocked, north-east, and UTs. States that do well are called achievers. Nomenclature matters. Thus, states that are middling aren’t called average. They are called fast movers. States that are sub-par are called aspirers. Let me highlight coastal states, since 75% of export cargo is estimated to originate from them. Among coastal states, ones that do well are Andhra Pradesh, Gujarat, Karnataka, and Tamil Nadu. The ones that lag are Goa, Odisha, and West Bengal. While India’s logistics performance may have improved over time, that’s not true of every state. Some have slipped. Most states have a state-level logistics policy, including Goa and Odisha. West Bengal, bottom of the pecking order in the coastal category, doesn’t have one. To quote from LEADS 2023, “Looking ahead, the State (West Bengal) could benefit from formulating a State Logistics Master Plan and State Logistics Policy to drive efficiency improvements and facilitate investments within the logistics sector and undertake consultation with the logistics stakeholders for educating and informing them about the initiatives State is undertaking for the development and improvement of logistics sector.”
Logistics has been talked about for a long time and India has also focused on improving performance. We are now getting some precise data on measurement and quantification. That helps.
Bibek Debroy, chairman, EAC-PM. Views are personal.