Silky Overseas Limited, a manufacturer and supplier of bedding products like blankets, bed sheets, comforters, and other home textile items, is launching its Initial Public Offering (IPO) through the Book Built Issue route. The company has made a name in the market by integrating its entire manufacturing process under one roof—knitting, dyeing, processing, printing, and packaging—which allows for cost-efficiency, quality control, and consistent standards in its product output.

The Silky Overseas IPO will open for public subscription on June 30, 2025, and will close on July 02, 2025. The IPO aims to raise ₹30.68 crores entirely through a fresh issue of 19.05 lakh equity shares. The price band has been fixed at ₹153 to ₹161 per equity share. At the upper end of the price band, the market capitalization of the company will be approximately ₹102.51 crores.

Retail investors can apply for a minimum of one lot, which includes 800 shares, amounting to an investment of ₹1,28,800. For High-Net-Worth Individuals (HNIs), the minimum application size is two lots (1,600 shares), totaling ₹2,57,600. The listing of the IPO is tentatively scheduled for July 07, 2025, on the NSE SME platform.

The issue is being managed by GRETEX CORPORATE SERVICES LIMITED as the book running lead manager, and the registrar to the issue is SKYLINE FINANCIAL SERVICES PRIVATE LIMITED. Gretex Share Broking Limited will serve as the market maker for this IPO.

Objective of the Issue

The proceeds from the Silky Overseas IPO will be utilized for the following purposes:

• ₹429.96 lakhs for the setup of an additional storage facility, ensuring better inventory management and operational flow.

• ₹354.52 lakhs will be used for repayment/pre-payment of certain debt facilities, strengthening the company’s balance sheet.

• ₹3,718.29 lakhs is allocated for working capital requirements, which is crucial for day-to-day operations in a capital-intensive industry like textiles.

• Remaining funds will be used for general corporate purposes.

Company Overview and Promoter Background

Silky Overseas Limited is promoted by Mr. Sawar Mal Goyal, who has over 15 years of experience in the bedding and stainless steel industries, and Mr. Ananya Goyal, who has over 8 years of experience across AIESEC, Waxpol Industries, and ICICI Prudential Life Insurance. Their combined experience contributes to a strong leadership foundation.

The company operates on a vertically integrated model, which includes all aspects from yarn to finished packaging. This single-location production approach not only reduces overhead costs but also ensures quality assurance at every step.

Financial Performance

The company has shown a consistent financial growth trajectory. Below is a snapshot of its performance:

• Revenue from Operations:

  • FY2022: ₹5,016.78 lakh

  • FY2023: ₹6,835.44 lakh

  • FY2024: ₹7,026.25 lakh

  • 9M FY2025 (till Dec 31, 2024): ₹10,534.96 lakh

• EBITDA:

  • FY2022: ₹301.27 lakh

  • FY2023: ₹539.77 lakh

  • FY2024: ₹1,157.21 lakh

  • 9M FY2025: ₹1,542.14 lakh

• Profit After Tax (PAT):

  • FY2022: ₹ -41.77 lakh

  • FY2023: ₹98.22 lakh

  • FY2024: ₹553.48 lakh

  • 9M FY2025: ₹917.07 lakh

These numbers indicate that Silky Overseas has turned profitable and is experiencing healthy profit margins, reflecting strong business fundamentals.

Valuation and Key Metrics

• Pre-issue EPS (FY24): ₹13.74

• Post-issue EPS (FY24): ₹8.69

• Pre-issue P/E ratio: 11.72x

• Post-issue P/E ratio: 18.52x

• Annualised EPS (based on Dec 2024): ₹17.28

• Annualised P/E: 9.32x

• Return on Capital Employed (ROCE): 39.54%

• Return on Equity (ROE) and RoNW: 36.56%

Despite these numbers, the IPO valuation appears stretched when compared to sector peers in the SME segment, suggesting that listing gains might be limited.

Grey Market Premium (GMP)

As of June 25, 2025, the GMP for Silky Overseas IPO is ₹0, indicating that no unofficial premium is being offered in the grey market. This reflects low demand or investor sentiment in the unregulated market. It’s important to note that GMP is not a reliable indicator of listing performance, as it fluctuates based on sentiment rather than fundamentals.

Allotment and Listing Details

• IPO Open Date: June 30, 2025

• IPO Close Date: July 02, 2025

• Allotment Date: July 03, 2025

• Tentative Listing Date: July 07, 2025

• Registrar: Skyline Financial Services Pvt. Ltd.

• Lead Manager: Gretex Corporate Services Ltd.

• Market Maker: Gretex Share Broking Ltd.

To check your IPO allotment status, follow these steps:

1. Go to the registrar's official website.

2. Select "Silky Overseas Limited IPO" from the dropdown list.

3. Enter your Application Number, PAN, or DP Client ID.

4. Submit to see your IPO allotment result.

Expert Review and Recommendation

Though the company’s financials show a clear growth trend and operational efficiency, the valuation is on the higher side. Additionally, the zero GMP suggests a lack of excitement in the grey market. The textile sector also faces challenges like fluctuating raw material prices, international competition, and high working capital needs.

Considering the low grey market activity, high retail investment threshold, and the company being fairly priced or even slightly expensive, analysts recommend avoiding the IPO for listing gains. However, long-term investors who believe in the company’s operational model and growth strategy may consider applying after reviewing their individual risk profiles.

Disclaimer:
This article is for educational and informational purposes only. It is not a recommendation or offer to buy/sell any securities. Investors must conduct their own due diligence or consult a financial advisor. The article is based on publicly available information and market data as of the date of writing. Past performance is not indicative of future results. Investment in securities markets is subject to market risks. Please read all scheme-related documents carefully before investing.

The Upcoming IPOs in this week and coming weeks are Travel Food Services, Cryogenic, Crizac, Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions.

The Current active IPO are Neetu Yoshi, Adcounty Media India, Moving Media Entertainment, Valencia India, PRO FX Tech, Ace Alpha Tech, Indogulf Cropsciences.

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