Silky Overseas Limited is a specialist in manufacturing and supplying bedding products, including blankets, bed sheets, comforters, and related items. The company prides itself on an integrated manufacturing process covering knitting, dyeing, processing, printing, and packaging all under one roof.

This integrated approach helps maintain consistent quality, large-scale production, and cost efficiencies, making it competitive in both domestic and export markets.

Company Overview

Silky Overseas offers a broad range of home textile products with emphasis on:

• Consistency in comfort and durability

• Vertical integration from raw material processing to packaging

• Competitive pricing for wholesale B2B markets

By controlling the entire manufacturing cycle, the company ensures quality standards and operational efficiency.

IPO Details

• IPO Type: Book Built Issue

• Issue Size: ₹30.68 Crores (entirely fresh issue of 19.05 lakh shares)

• Price Band: ₹153 to ₹161 per share

• Market Capitalisation (at ₹161): ₹102.51 Crores

Key Dates:

• IPO Opens: June 30, 2025

• IPO Closes: July 02, 2025

• Allotment Date: Expected July 03, 2025

• Listing Date (NSE SME): Tentative July 07, 2025

Investment Terms

• Lot Size: 800 shares

• Retail Minimum Investment: ₹1,28,800

• HNI Minimum Investment: ₹2,57,600 (2 lots)

These requirements are typical of SME listings, ensuring serious participation from retail and HNI investors.

IPO Handling Parties

• Book Running Lead Manager: GRETEX CORPORATE SERVICES LIMITED

• Registrar: SKYLINE FINANCIAL SERVICES PRIVATE LIMITED

• Market Maker: Gretex Share Broking Limited

Their expertise ensures a smooth IPO process, with robust compliance and investor support.

Promoters and Management

• Mr. Sawar Mal Goyal: Over 15 years of business experience, previously in stainless steel.

• Mr. Ananya Goyal: Over 8 years in diverse roles at AIESEC, The Waxpol Industries Limited, and ICICI Prudential Life Insurance.

Their leadership brings experience across industries, promoting innovative management and operational oversight.

Business Model and Strategy

Silky Overseas benefits from:

• Fully integrated production model controlling all stages of manufacturing.

• High-volume, quality-focused production that supports B2B partnerships.

• Ability to customise products for large buyers, retailers, and exporters.

This model supports scalability, cost efficiency, and consistent quality.

Financial Performance

Revenue from Operations:

• FY22: ₹5,016.78 Lakh

• FY23: ₹6,835.44 Lakh

• FY24: ₹7,026.25 Lakh

• Dec 2024 (9 months): ₹10,534.96 Lakh

EBITDA:

• FY22: ₹301.27 Lakh

• FY23: ₹539.77 Lakh

• FY24: ₹1,157.21 Lakh

• Dec 2024 (9 months): ₹1,542.14 Lakh

Profit After Tax:

• FY22: ₹-41.77 Lakh

• FY23: ₹98.22 Lakh

• FY24: ₹553.48 Lakh

• Dec 2024 (9 months): ₹917.07 Lakh

These figures highlight strong, steady growth in both revenue and profitability over three years.

Valuation Metrics

• Pre-issue EPS (FY24): ₹13.74

• Post-issue EPS: ₹8.69

• Pre-issue P/E Ratio: 11.72x

• Post-issue P/E Ratio: 18.52x

Annualised EPS (Dec 2024): ₹17.28
Annualised P/E Ratio: 9.32x

Return Ratios:

• ROCE: 39.54%

• ROE: 36.56%

• RoNW: 36.56%

These metrics suggest the IPO is fully priced, with modest room for short-term re-rating.

Grey Market Premium (GMP)

• Current GMP: ₹0

• Implied Listing Gain: None anticipated

Investor Note:

• GMP is unofficial and based on market sentiment.

• A zero GMP suggests neutral demand, reflecting investor caution over valuation.

Competitive Strengths

• Fully integrated manufacturing for cost control and consistent quality.

• Strong growth in revenue and profitability.

• Experienced promoters with multi-industry exposure.

• Ability to scale production for large orders.

These strengths make Silky Overseas a competitive player in the textile industry.

Risks and Challenges

• No expected listing gains (flat GMP).

• Valuation is at the upper end of peer range.

• SME platform listings can have lower liquidity.

• Global textile demand subject to economic cycles.

Investors should evaluate these risks carefully before investing.

Analyst Recommendation

Despite a well-managed and growing business, the current valuation and GMP of ₹0 suggest no immediate listing gains.

Recommendation:

• Avoid for listing gains, as near-term upside appears limited.

• Long-term investors interested in home textiles could watch post-listing performance for better entry.

Conclusion

The Silky Overseas IPO offers an opportunity to invest in an expanding home textile manufacturer with integrated production and strong growth.

Key Positives:

• Steady revenue and profit growth.

• Efficient, integrated manufacturing.

• Well-experienced promoters.

Key Concerns:

• Fully priced IPO with no GMP support.

• SME platform liquidity issues.

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Disclaimer:

This article is intended for informational and educational purposes only and does not constitute investment advice. Readers are advised to consult their financial advisor before making any investment decisions. Investments in securities are subject to market risks. Please read all related documents carefully before applying for the IPO. The data provided is based on publicly available information and may be subject to change.

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