Silky Overseas Limited, a well-established name in the bedding products manufacturing sector, has launched its Initial Public Offering (IPO) on the NSE SME platform. The Silky Overseas IPO, structured as a Book Built Issue, aims to raise ₹30.68 Crores through a Fresh Issue of 19.05 lakh equity shares. The price band has been set between ₹153 to ₹161 per equity share.

The IPO subscription window is open from June 30 to July 2, 2025, with the share allotment expected on Thursday, July 3, 2025. The company’s shares are scheduled to be listed on the NSE SME platform on or around Monday, July 7, 2025. At the upper end of the price band, the estimated market capitalisation of Silky Overseas Limited will be around ₹102.51 Crores.

Silky Overseas IPO Investment Details

The lot size of the IPO is 800 shares, meaning that retail investors must invest a minimum of ₹1,28,800, while High-Net-Worth Individuals (HNIs) must invest in a minimum of 2 lots (1,600 shares), translating to ₹2,57,600.

GRETEX CORPORATE SERVICES LIMITED is the Book Running Lead Manager (BRLM) for the IPO. SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is serving as the Registrar, while Gretex Share Broking Limited is appointed as the Market Maker for this public issue.

Silky Overseas GMP Today and Subscription Status

As of July 1, 2025, 11:00 AM, the Silky Overseas IPO has been subscribed 0.13 times on the second day of the offering. The response from investors has been modest so far, reflecting the absence of speculative demand.

The Grey Market Premium (GMP) for the Silky Overseas IPO stands at ₹0, implying no expected listing gains based on informal market activity. It is important to note that GMPs are unofficial, unregulated, and can fluctuate based on market sentiment and demand-supply dynamics. Hence, they should only be viewed as informational indicators and not as investment advice.

Anchor Investors Participation

Ahead of the public offering, Silky Overseas raised ₹7.67 Crores from Anchor Investors at the upper band of ₹161 per share. A total of 4,76,800 equity shares were allocated to these investors in consultation with the Book Running Lead Manager. This allocation comes from the Qualified Institutional Buyers (QIBs) portion.

Objective of the IPO

Silky Overseas plans to utilise the Net Proceeds from the IPO for the following strategic business purposes:

• ₹429.96 Lakhs for setting up an Additional Storage Facility

• ₹354.52 Lakhs for repayment/pre-payment of certain debt facilities

• ₹3,718.29 Lakhs to meet Working Capital Requirements

• The remaining funds will be used for General Corporate Purposes

These objectives reflect the company’s focus on strengthening its operational infrastructure and reducing its financial liabilities.

Business Overview

Silky Overseas Limited is engaged in the manufacturing and supply of bedding products such as blankets, bed sheets, comforters, and other related items. The company’s vertically integrated production process, which includes knitting, dyeing, processing, printing, and packaging, is carried out under a single roof. This enables consistent product quality, cost control, and efficient high-volume production.

The company is promoted by Mr. Sawar Mal Goyal, who brings over 15 years of business experience, including early experience in the stainless steel industry, and Mr. Ananya Goyal, who has 8 years of professional exposure through roles at AIESEC, The Waxpol Industries Limited, and ICICI Prudential Life Insurance.

Financial Performance and Growth

Silky Overseas has shown strong revenue growth and profitability improvement over the years. Here's a snapshot of its financial performance:

Revenue from Operations:

• ₹5,016.78 Lakh in FY22

• ₹6,835.44 Lakh in FY23

• ₹7,026.25 Lakh in FY24

• ₹10,534.96 Lakh (April to Dec 2024)

EBITDA:

• ₹301.27 Lakh in FY22

• ₹539.77 Lakh in FY23

• ₹1,157.21 Lakh in FY24

• ₹1,542.14 Lakh (April to Dec 2024)

Profit After Tax (PAT):

• ₹-41.77 Lakh in FY22

• ₹98.22 Lakh in FY23

• ₹553.48 Lakh in FY24

• ₹917.07 Lakh (April to Dec 2024)

These figures show a clear trajectory of operational excellence, cost efficiency, and margin expansion. The rise in profit margins further supports the company’s strategy of vertical integration.

Valuation Metrics

The valuation of the IPO, based on financial indicators, is summarised as follows:

• 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 (FY24): ₹17.28

• Annualised P/E Ratio: 9.32x

• ROCE: 39.54%

• ROE: 36.56%

• RoNW: 36.56%

While the return ratios are commendable, suggesting a strong balance sheet, the post-issue valuation appears to be fair to fully priced, especially given the 0% GMP in the grey market.

IPO Recommendation

Despite its strong fundamentals, revenue growth, and solid return metrics, the lack of grey market enthusiasm, minimal subscription traction, and the absence of expected listing gains are red flags for short-term or listing-focused investors.

As a result, the IPO is best avoided for listing gains. However, long-term investors with an appetite for SME stocks in the textile manufacturing space may consider tracking the stock post-listing, especially once the market demand stabilises.

Conclusion

The Silky Overseas IPO provides a chance to invest in a high-growth SME manufacturer with solid financials, robust infrastructure, and a promising expansion strategy. The company’s focus on vertical integration gives it a competitive edge in the textile and bedding industry.

Still, given that the IPO is fairly valued, coupled with no grey market premium and low early subscription figures, investors are advised to exercise caution and not expect immediate listing returns.

Disclaimer: This content is for informational purposes only and should not be interpreted as financial advice. Always consult a certified investment advisor before making any investment decisions.

The Upcoming IPOs in this week and coming weeks are Anthem Biosciences, Chemkart India, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS, Crizac, .

The Current active IPO are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Marc Loire Fashions, Neetu Yoshi, Adcounty Media India.

Start your Stock Market Journey and Apply in IPO by Opening Free Demat Account in Choice Broking FinX.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst.