The Silky Overseas IPO closed its subscription window on 2 July 2025 after three days of bidding, and recorded a subscription rate of 1.21 times. This moderate interest from investors came despite a Grey Market Premium (GMP) of ₹ 0, indicating that there are no expected listing gains as per current grey market activity. The IPO allotment date is set for 3 July 2025, and shares are expected to be listed on the NSE SME platform on 7 July 2025.

Silky Overseas Limited is a manufacturer and supplier of bedding products, which include blankets, bed sheets, comforters, and other related items. The company prides itself on maintaining an integrated manufacturing setup, performing knitting, dyeing, processing, printing, and packaging within a single facility. This end-to-end setup enables the company to efficiently manage large-scale production, ensuring that comfort and durability remain consistent across its offerings.

IPO Details and Investment Highlights

The Silky Overseas IPO is a Book Built Issue with a total size of ₹ 30.68 Crores, comprising a Fresh Issue of 19.05 lakh equity shares. There is no Offer for Sale (OFS) component, which means the entire IPO proceeds will be used by the company for its business purposes.

The price band for the IPO is fixed between ₹ 153 to ₹ 161 per share, and the lot size is 800 shares. The minimum investment required for retail investors is ₹ 1,28,800, while High-Net-Worth Individuals (HNIs) need to invest in a minimum of 2 lots (1,600 shares), amounting to ₹ 2,57,600.

At the upper price band of ₹ 161, the post-issue market capitalization of Silky Overseas stands at approximately ₹ 102.51 Crores.

IPO Management Team and Participants

The Book Running Lead Manager (BRLM) for the issue is GRETEX CORPORATE SERVICES LIMITED, and the Registrar is SKYLINE FINANCIAL SERVICES PRIVATE LIMITED. The Market Maker role is being played by Gretex Share Broking Limited, adding liquidity support post-listing.

Anchor Investor Participation

Prior to the IPO opening, Silky Overseas successfully raised ₹ 7.67 Crores from Anchor Investors at the price of ₹ 161 per share. A total of 4,76,800 shares were allocated in this round. Anchor investments help signal confidence from institutional investors, although in this case, the impact did not translate into a high GMP or overwhelming subscription.

Use of IPO Proceeds

The net proceeds from the IPO are proposed to be used for:

• ₹ 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 for working capital requirements

• Remaining proceeds for general corporate purposes

These allocations indicate the company's intent to expand operational capacity and strengthen financial stability.

Live Subscription and Grey Market Status

As of 11:00 AM on 2 July 2025, the final day of bidding, the IPO was subscribed 1.21 times overall. The response was relatively moderate, with no real movement in the Grey Market, which continues to show a GMP of ₹ 0.

The absence of a grey market premium usually reflects either lack of speculative interest or fair pricing of the IPO.

Financial Performance and Metrics

Silky Overseas has demonstrated strong growth over the last three years. Revenue from operations has increased consistently:

• Dec 31, 2024 (9 months): ₹ 10,534.96 Lakhs

• FY 2024: ₹ 7,026.25 Lakhs

• FY 2023: ₹ 6,835.44 Lakhs

• FY 2022: ₹ 5,016.78 Lakhs

EBITDA has also improved:

• Dec 31, 2024: ₹ 1,542.14 Lakhs

• FY 2024: ₹ 1,157.21 Lakhs

• FY 2023: ₹ 539.77 Lakhs

• FY 2022: ₹ 301.27 Lakhs

Profit After Tax (PAT) follows a similar growth pattern:

• Dec 31, 2024: ₹ 917.07 Lakhs

• FY 2024: ₹ 553.48 Lakhs

• FY 2023: ₹ 98.22 Lakhs

• FY 2022: ₹ -41.77 Lakhs

This indicates a positive growth trajectory, especially with a turnaround from losses in FY22 to significant profits by FY25.

Key performance indicators for FY24 are:

• Pre-Issue EPS: ₹ 13.74

• Post-Issue EPS: ₹ 8.69

• Pre-Issue P/E: 11.72x

• Post-Issue P/E: 18.52x

• Annualised EPS: ₹ 17.28

• Annualised P/E: 9.32x

• ROCE (FY24): 39.54%

• ROE (FY24): 36.56%

• RoNW: 36.56%

Despite strong ROE and ROCE numbers, the IPO is considered fully priced, given its post-issue valuation metrics and a flat grey market outlook.

Promoter Profile

The business is promoted by Mr. Sawar Mal Goyal, who has over 15 years of experience in various industries including stainless steel, and Mr. Ananya Goyal, who has more than 8 years of experience and has worked with AIESEC, Waxpol Industries, and ICICI Prudential Life Insurance. Their combined expertise supports Silky Overseas in terms of strategic expansion and operational oversight.

How to Check Allotment Status

The allotment of Silky Overseas IPO shares is expected to be finalized on 3 July 2025. Investors can check their status through:

• Registrar’s official website

• Using Application Number

• Using PAN Number

• Using DP Client ID

Once the details are submitted, investors can confirm whether they’ve been allotted shares and prepare for listing day.

Final Verdict: Should You Subscribe?

Despite decent financials and a solid business model, Silky Overseas IPO lacks market excitement, as evidenced by:

• GMP of ₹ 0

• Moderate subscription (1.21x)

• High minimum investment threshold for retail investors

While the company is financially sound, the valuation suggests the IPO is fully priced. Considering the lack of listing gain prospects, analysts recommend avoiding the Silky Overseas IPO for short-term gains. Long-term investors may consider entering the stock after observing its post-listing performance on the NSE SME platform.

Disclaimer:
The information provided here is strictly for educational and informational purposes and does not constitute financial advice. Investors should conduct their own due diligence and seek professional advice before making investment decisions. Investments in the securities market are subject to market risks. Please read all relevant documents carefully before investing.

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