Silky Overseas Limited has announced its ₹30.68 Crore IPO on the NSE SME platform, aiming to tap investor demand for quality bedding manufacturers with integrated production capabilities.

The subscription period runs from June 30, 2025 to July 02, 2025, with allotment expected on July 03, 2025, and a tentative listing date on July 07, 2025.

This IPO is a 100 percent Fresh Issue of 19.05 lakh shares, with a price band set at ₹153 to ₹161 per equity share. The company expects to achieve a market capitalisation of ₹102.51 Crores at the upper price.

GRETEX CORPORATE SERVICES LIMITED is the book running lead manager, SKYLINE FINANCIAL SERVICES PRIVATE LIMITED is the registrar, and Gretex Share Broking Limited acts as the market maker.

Investors need to apply in lots of 800 shares, requiring a minimum retail investment of ₹1,28,800, while HNIs must apply for at least 2 lots (₹2,57,600).

Business Overview and Production Capabilities

Silky Overseas is a manufacturer and supplier of a wide range of bedding products, including:

• Blankets

• Bed sheets

• Comforters

• Related items

Their unique selling proposition lies in their fully integrated manufacturing facility, covering:

• Knitting

• Dyeing

• Processing

• Printing

• Packaging

This end-to-end control ensures consistent product quality, efficient production, and the ability to meet large-scale orders while maintaining comfort and durability standards.

Promoter Experience and Management Strength

Silky Overseas is promoted by Mr. Sawar Mal Goyal, who has over 15 years of experience in business, starting with the stainless steel industry before moving to textiles.

Mr. Ananya Goyal brings over 8 years of experience, including roles at AIESEC, The Waxpol Industries Limited, and ICICI Prudential Life Insurance.

Their combined experience ensures:

• Strategic vision

• Operational efficiency

• Strong market understanding

• Customer-centric approach

They are actively involved in the day-to-day management and have driven the company’s steady growth trajectory.

Financial Performance and Growth Trends

Silky Overseas has demonstrated solid financial growth over the last few years, showing its ability to scale operations effectively.

• Revenue from Operations:

  • FY22: ₹5,016.78 Lakh

  • FY23: ₹6,835.44 Lakh

  • FY24: ₹7,026.25 Lakh

  • Period ended Dec 31, 2024: ₹10,534.96 Lakh

• EBITDA:

  • FY22: ₹301.27 Lakh

  • FY23: ₹539.77 Lakh

  • FY24: ₹1,157.21 Lakh

  • Period ended Dec 31, 2024: ₹1,542.14 Lakh

• Profit After Tax (PAT):

  • FY22: ₹ -41.77 Lakh

  • FY23: ₹98.22 Lakh

  • FY24: ₹553.48 Lakh

  • Period ended Dec 31, 2024: ₹917.07 Lakh

This data shows steady revenue growth, expansion in operating margins, and improved profitability, underscoring successful scaling of production and effective cost control.

Valuation and Key Financial Metrics

Silky Overseas has shared detailed valuation metrics:

• Pre-issue EPS: ₹13.74

• Post-issue EPS: ₹8.69

• Pre-issue P/E Ratio: 11.72x

• Post-issue P/E Ratio: 18.52x

• ROCE (FY24): 39.54%

• ROE (FY24): 36.56%

• RoNW: 36.56%

• Annualised EPS: ₹17.28

• Annualised P/E Ratio: 9.32x

These figures indicate the IPO is fully priced with moderate valuation multiples relative to its financial performance and sector averages.

Use of IPO Proceeds

Proceeds from the IPO are planned for:

• Enhancing working capital to support growing order volumes

• Investments in production technology for quality control

• Strengthening distribution networks to access new markets

• General corporate purposes to improve operational flexibility

These uses are designed to support scalable growth and sustainability in operations.

Grey Market Premium (GMP) Insight

The Grey Market Premium for Silky Overseas IPO is ₹0, suggesting no expected listing premium at this stage.

Investors should consider that:

• GMP is unregulated and based on informal demand

• Real price discovery happens only post-listing

• Analysts caution against over-reliance on GMP for investment decisions

Competitive Edge and Market Position

Silky Overseas has clear advantages in:

• Fully integrated manufacturing enabling end-to-end quality control

• Cost efficiency through streamlined operations

• Ability to meet large-scale orders with consistent standards

• Diverse bedding product range catering to both wholesale and retail markets

Such strengths make the company well-positioned to expand market share domestically and potentially target exports in the future.

Risks and Considerations

Key risks for investors to note:

• Raw material price volatility impacting margins

• Competition from established bedding brands

• Dependence on B2B demand cycles

• Liquidity constraints post-listing on the SME platform

These factors underline the need for careful assessment of one’s risk appetite.

Expert Recommendations

Given the valuation, financial trends, and zero GMP, analysts have issued an Avoid recommendation for those seeking listing gains.

However, long-term investors may consider watching for:

• Execution on capacity expansion

• Ability to maintain margin growth

• Scaling of distribution networks

• Entry into new markets including potential exports

Conclusion

The Silky Overseas IPO represents an opportunity to invest in an integrated bedding manufacturer with consistent growth, experienced leadership, and a strong production setup.

While short-term listing gains appear limited, the company’s scalable model and quality-focused production offer potential for steady long-term returns.

Investors should carefully weigh their risk tolerance, investment horizon, and the company’s execution ability before making a decision.

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.

The Upcoming IPOs in this week and coming weeks are  Asston Pharmaceuticals, CFF Fluid Control, Smarten Power Systems, Glen Industries, Travel Food Services, Anthem Biosciences, Chemkart India.

The Current active IPO are Crizac, Meta Infotech, Happy Square Outsourcing Services, Cryogenic OGS.

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