Silky Overseas IPO

About Silky Overseas IPO

The offer consists of a fresh issue component. The fresh issue will include up to 19,05,600* equity shares of face value of ₹10.00 each. The total number of shares and aggregate amount are yet to be finalised.

(* Subject to Finalisation of Basis of Allotment) The price band of the IPO is between ₹153 and ₹161. the lot size of the IPO is 800 shares.

The listing date of the IPO is July 7, 2025. The credit of shares to the demat account will take place on July 4, 2025. The allotment date is July 3, 2025. The initiation of refunds will take place on July 4, 2025

Objectives of Silky Overseas IPO

• Setting up an additional storage facility.
• Repayment/pre-payment of certain debt facilities.
• Working capital requirements.
• General corporate purposes.

Industry Outlook

The market for Indian textiles and apparel is projected to grow at a 10% CAGR to reach US$35,000 crore by 2030. Moreover, India is the world's third-largest exporter of textiles and apparel. India ranks among the top five global exporters in several textile categories, with exports expected to reach US$10,000 crore. The textiles and apparel industry contributes 2.3% to the country's GDP, 13% to industrial production and 12% to exports. The textile industry in India is predicted to double its contribution to the GDP, rising from 2.3% to approximately 5% by the end of this decade.

The future of the Indian textiles industry looks promising, buoyed by strong domestic consumption as well as export demand. India is working on various major initiatives to boost its technical textile industry. Owing to the pandemic, the demand for technical textiles in the form of PPE suits and equipment is on the rise. The government is supporting the sector through funding and machinery sponsorship. Top players in the sector are achieving sustainability in their products by manufacturing textiles that use natural recyclable materials.

According to the survey conducted by the Reserve Bank of India, capacity utilisation in India's manufacturing sector stood at 76.8% in the third quarter of FY24, indicating significant sectoral recovery. India has the potential to become a global manufacturing hub, and by 2030, it can add more than ₹43,43,500 crore (US$50,000 crore) annually to the global economy. India's display panel market is estimated to grow from ₹60,809 crore (US$700 crore) in 2021 to ₹1,30,305 crore (US$1,500 crore) in 2025.

Company Information

Silky Overseas Limited manufactures and supplies bedding products, including blankets, bed sheets, comforters, and related items. Their manufacturing process is integrated and includes knitting, dyeing, processing, printing, and packaging, all conducted within a single facility. This approach allows for the efficient production of large quantities while ensuring that products maintain a consistent standard of comfort and durability. Their product range includes blankets, baby blankets, comforters, bedsheets, and curtains, all designed by a team of professionals and produced using appropriate machinery and techniques. The company holds ISO 9001:2015 certification, demonstrating adherence to quality standards as recognised by the United Registrar of Systems certification body.

They manufacture products based on the order specifications received from their customers to meet their requirements. They believe that maintaining a range of products in their business provides them with an opportunity to cater to the diverse needs of different customer segments. Furthermore, they believe they have experienced resources, and a network that can be customised and leveraged to cater to a wider range of bulk packaging containers as per the requirements of the customers.

Risks of Silky Overseas IPO

• Seasonal fluctuations

The company’s major sales come from the sale of blankets, i.e. 64.63% of total sales as of the financial year ended 31 March 2024. The sale of blankets is higher in winter; in India, winter starts from late October and continues till early March. They realise major sales during these months. These seasonal fluctuations can be influenced by various factors, including weather conditions, industry-specific events which often vary throughout the year, with increased spending during certain seasons or holidays. If they are unable to effectively manage these seasonal fluctuations, their revenue and profitability may experience significant volatility. This could negatively impact their ability to generate cash flow, invest in their business, and meet their financial obligations.

• They have a single production unit located in Panipat

Their production unit is located in the state of Haryana, India. Their processing operations and consequently their business are dependent upon their ability to manage this unit, which is subject to operating risks, including those beyond their control. In the event of any disruptions at their unit, due to natural or man-made disasters, workforce disruptions, delay in regulatory approvals, fire, failure of machinery, lack of continued access to assured supply of electrical power and water at reasonable costs, changes in the policies of the state or local government or authorities, or any significant social, political or economic disturbances or civil disruptions in and around Panipat, Haryana, their ability to produce their products may be adversely affected. Disruptions in and around their unit could delay production or require them to shut down the unit. Any such adverse development affecting continuous operations at their processing facility could result in significant loss due to an inability to meet customer contracts and production schedules, which could materially affect their business reputation within the industry.

• Dependence on manpower

Their business involves usage of manpower and they are dependent on the availability of their permanent employees and the supply of a sufficient pool of labourers. Unavailability or shortage of such a pool of workmen or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on their cash flows and results of operations. They may not be able to secure the required number of labourers needed for the timely execution of their functions for a variety of reasons including, but not limited to, possibility of disputes with sub-contractors, strikes, less competitive rates. They are subject to laws and regulations relating to employee welfare and benefits such as minimum wage, working conditions, employee insurance, and other such employee benefits, and any changes to existing labour legislation, including upward revision of wages required by such state governments to be paid to such contract labourers, limitations on the number of hours of work or provision of improved facilities. Furthermore, there can be no assurance that disruptions in their business will not be experienced if there are strikes, work stoppages, disputes or other problems with sub-contractors or contract labourers deployed at their projects. This may adversely affect their business, cash flows and results of operations.

Anchor Investor Bidding Date: 27 June 2025

Registrar: Skyline Financial Services Private Limited Book Running Lead Managers: Gretex Corporate Services Limited

Business Model

The company earns its revenue from the following: Manufacture and supply bedding products, including blankets, bed sheets, comforters, and related items. Their manufacturing process is integrated and includes knitting, dyeing, processing, printing, and packaging, all conducted within a single facility.

Company Growth Trajectory

The company has made ₹105.10 crores, ₹69.70 crores, ₹68.31 crores, and ₹50.12 crores in total revenue from the sale of items for the ten-month period ended 31 January 2025, and the financial years that ended 31 March 2024, 2023, and 2022, respectively.

The net profit after tax for the ten-month period ended 31 January 2025 was ₹9.17 crores, and for the fiscal years that concluded on 31 March 2024, 2023, and 2022 was ₹5.53 crores, ₹0.98 crore, and ₹(0.42) crore, respectively. The EBITDA for the same periods was ₹15.09 crores, ₹11.01 crores, ₹5.35 crores, and ₹2.97 crores for the ten-month period ended 31 January 2025, and the financial years ended 31 March 2024, 2023, and 2022, respectively.

They have reported a return on equity of 46.48%, 56.06%, 23.97%, and (23.27)%, along with a total debt-to-equity ratio of 0.85, 1.70, 6.25, and 8.63, as well as a return on capital employed of 45.12%, 39.54%, 30.95%, and 10.09%, for such periods.

How to check allotment status of Silky Overseas IPO?

1. Visit the Registrar's Website

To check the IPO allotment status for Silky Overseas Limited IPO, visit the official website of Skyline Financial Services Private Limited, the registrar for this IPO. On their IPO allotment status page, enter your Permanent Account Number (PAN), application number, or Demat account ID. Then, click the ‘Submit’ button to view your allotment status. Ensure you have the necessary details ready for a quick and accurate check.

2. Check on the Bombay Stock Exchange Website

The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page.

On the BSE IPO page, follow these steps

• Select 'Equity' from the dropdown menu
• Choose 'Silky Overseas Limited' in the next dropdown
• Enter your application number
• Enter your PAN
• Click 'Search'Your Silky Overseas Limited IPO allotment status will be displayed.

3. Verify on the National Stock Exchange Website

The National Stock Exchange (NSE) has an IPO Bid Verification module. Use this to check Silky Overseas Limited IPO allotment status.

Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.

On the NSE IPO Bid Verification page, enter:

• Application number
• PAN

Then click 'Submit'. Your Silky Overseas Limited IPO bid and allotment details will be displayed.

How to apply for Silky Overseas IPO?

• Step 1: Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details - Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.