Sai Silks (Kalamandir) IPO fund utilization delayed for expansion projects

Sai Silks (Kalamandir) Limited's IPO proceeds utilization has experienced delays across several objectives for the quarter ended September 30, 2025. According to a monitoring agency report by CARE Ratings Ltd, while overall allocated amounts for objects 1, 2, 3, and 5 remain unchanged, there are deviations in their implementation timelines. The company raised Rs. 600 crore through its IPO in September 2023, with net proceeds available for utilization amounting to Rs. 566.24 crore. As of September 30, 2025, Rs. 401.96 crore of the net proceeds had been utilized, leaving Rs. 164.28 crore unutilized.

Key delays include capital expenditure for 30 new stores, where Rs. 80.04 crore has been spent against a target of Rs. 103.32 crore by March 31, 2025. The establishment of two new warehouses also faces delays, with Rs. 2.82 crore spent against the entire funds expected to be utilized by March 2024. Furthermore, working capital requirements have seen Rs. 186.20 crore utilized against an expected Rs. 228.98 crore by March 31, 2025. General Corporate Purposes (GCP) utilization of Rs. 82.90 crore also lags the initial March 2024 target.

The unutilized proceeds, totaling Rs. 186.41 crore, are primarily invested in Fixed Deposits with HDFC Bank and held in the IPO monitoring account. These investments have generated earnings of Rs. 0.97 and a return of 7.35% on fixed deposits. The company attributes delays to lengthy procedures for establishing new outlets and strategic location planning for warehouses, with all funds for these objectives still planned for utilization by March 2026.