Silky Overseas Ltd IPOSILKY

The IPO opens on 30 Jun 2025 & closes on 02 Jul 2025.

Silky Overseas Limited was originally incorporated on May 01, 2016, as a Private Limited Company in the name and style of Silky Overseas Private Limited' with the Registrar of Companies, Central Registration Centre. Subsequently, Company converted from a Private Limited to a Public Limited and the name of the Company was changed to Silky Overseas Limited' and a Fresh Certificate of Incorporation was issued on November 07, 2023. The Company is in the business of manufacturing of Blankets & Trading of Comforters, bed Sheets & Curtains. Their integrated manufacturing process encompasses knitting, dyeing, processing, printing, and packaging, all under one roof. It sell under the brand name 'Rian Décor'. This ensures efficient bulk production without compromising on the quality that guarantees comfort and luxury. The Company acquired the property at Jawahra Village in Sonepat district in Haryana and began the commercial production in 2017. Later, the Company started a project with the installation of a 750 KW solar plant to reduce the carbon footprint in 2022. It launched a new line of products including bedsheets, comforters, and curtains in 2023. The Company has been certified for Quality Management System ISO 9001:2015 issued by International Quality Certification Services UK Ltd. Company launched the initial public offer 19,05,600 equity shares of face value Rs 10 each by raising funds of fresh issue amounting to Rs 30.68 Crore in July, 2025.

Silky Overseas Ltd IPO will close on 02 Jul 2025.

<ul><li>Purchase of higher quality thread count fabric at a lower price.</li><li>Experienced promoters and a dedicated employee base.</li><li>Infrastructure and Integrated capabilities to deliver quality products.</li><li>Strong Logistics Chain.</li><li>The Company has good storage for Inventory Management.</li></ul>

<table class="table"> <thead> <tr> <th>S.No</th> <th>Promoters Name</th> <th>Pre Issue Shares</th> <th>Pre Issue Percentage</th> <th>Post Issue Shares</th> <th>Post Issue Percentage</th> </tr> </thead> <tbody> <tr> <td>1</td> <td>Sawar Mal Goyal</td> <td>2754200</td> <td>61.73</td> <td>2754200</td> <td>43.25</td> </tr> <tr> <td>2</td> <td>Ananya Goyal</td> <td>900000</td> <td>20.17</td> <td>900000</td> <td>14.13</td> </tr> <tr> <td>3</td> <td>S.M.Goyal & Sons (HUF)</td> <td>200000</td> <td>4.48</td> <td>200000</td> <td>3.14</td> </tr> <tr> <td>4</td> <td>Sanjay Goyal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> <tr> <td>5</td> <td>Shalu Goyal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> <tr> <td>6</td> <td>Soumya Goyal</td> <td>100</td> <td>---</td> <td>100</td> <td>---</td> </tr> </tbody> </table>

<ul><li>There are outstanding litigations by and against the Company which if determined against it, could adversely impact financial conditions.</li><li>Its business predominantly focuses on blankets, which makes it particularly susceptible to fluctuations in demand. Any shifts in consumer preferences have the potential to significantly impact its business, as well as influence the company operational outcomes and financial standing. Its business is highly concentrated on the sale of a single product, i.e., blankets. The details of the contribution of the sales of its products to the company total revenue from operations.</li><li>A majority of the company supplies for its operations are obtained from a limited number of suppliers.</li><li>The company is dependent on a few customers for a major part of its revenues. Further, the company does not enter into long-term arrangements with its customers could adversely affect the company business and the results of operations.</li><li>The Company has a negative cash flow in its operating activities for the financial year ended on March 31, 2024, investing activities for the ten months period ended January 31, 2025 and financial year ended March 31, 2024, March 31, 2023 and March 31, 2022 and Financing Activity for the ten months period ended January 31, 2025 and the financial year ended March 31, 2023 details of which are given below. There was a net decrease in Cash and Cash Equivalent for ten months period ended January 31, 2025 and all the three years. Sustained negative cash flow could impact its growth and business.</li><li>Its business is subject to significant seasonal fluctuations, which could materially impact the company financial results.</li><li>The company has only one production unit that is located in Panipat and any localized social unrest, natural disaster breakdown of services, or any other natural disaster in and around Panipat or any disruption in production at, or shutdown of, its production unit could have material adverse effect on the company business and financial condition.</li><li>If the company is unable to maintain an optimal level of inventory, its business, results of operations and financial condition may be adversely affected.</li><li>Risk of Unsustainability of PAT Margin Increase in FY 24.</li><li>Its registered office on located on rental premises and consequently, the company is required to comply with certain requirements given under leave and license agreements.</li><li>The Logo which is being used by it is yet not registered with the Trademarks.</li><li>If the Company is unable to continue being creative in its designs or if the company is unable to keep up to the changing fashion trends, its sales could be affected.</li><li>There have been instances in the past where the company has not made certain regulatory filings with the RoC and there were certain instances of discrepancies in relation to certain statutory filings and corporate records of the Company.</li><li>There have been some instances of delays in the filing of statutory and regulatory dues in the past with the various government authorities.</li><li>The company has certain contingent liabilities as on date of this Red Herring Prospectus that have not been provided for in the Company's financials which if materialized, could adversely affect its financial condition.</li><li>Its contingent liabilities as stated in the company Restated Financial Statements could affect its financial condition.</li><li>The company have had high Debt-to-Equity Ratio in past.</li><li>Its success depends heavily upon the company individual Promoters and Directors for their continuing services, strategic guidance and financial support.</li><li>Its Promoters and Promoter Group will be able to exercise significant influence and control over the company operations after the issue and may have interests that are different from those of its other shareholders.</li><li>Its Promoters, Directors, Key Managerial Personnel and Senior Management Personnel may have interest in the Company, other than reimbursement of expenses incurred, remuneration or other benefits received.</li><li>Its business involves usage of manpower and any unavailability of the company employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen or changes in regulations governing contractual labour may have an adverse impact on its cash flows and results of operations.</li><li>Its Promoters have provided a personal guarantee for loans availed by the company.</li><li>The company has not identified any alternate source of financing the `Objects of the Issue'. If we fail to mobilize resources as per its plans, the company growth plans may be affected.</li><li>The company is subject to various government regulations and if its fail to obtain, maintain or renew the company statutory and regulatory licenses, permits and approvals required to operate its business, the company business, results of operations and cash flows may be adversely affected.</li><li>Potential Challenges Arising from Independent Directors' Limited Experience in Listed Companies.</li><li>The Company's processing activities are labor intensive and depends on availability of skilled and unskilled employee in large numbers.</li><li>Its business strategies and expansion plans may be subject to various unfamiliar risks and may not be successful.</li><li>Dependence on key customers, financial constraints, and challenges in establishing a foothold in new market segments may impact the company's growth and stability.</li><li>Changing regulations, supply chain disruptions, intense competition, and economic fluctuations pose significant risks to the company's operation and growth.</li><li>There have been instances of delay / default in payments to MSME registered vendors in the last three Financial Years. Any Continued delay / default may negatively impact its relationships, profitability, and cash flow.</li><li>Brand recognition is important to the success of its business, and the company inability to build and maintain its brand names will harm the company business, financial condition, and results of operation.</li><li>Its success depends in large part upon the company qualified personnel, including its senior management, directors and key personnel and the company ability to attract and retain them when necessary.</li><li>Its ability to pay dividends in the future will depends upon future earnings, financial condition, cash flows, working capital requirements and capital expenditures.</li><li>In the past, there were instances when the Company had not made any provision for payment of gratuity to its employees</li><li>Its may faces competition from local and Favorable markets.</li><li>As the company continue to grow, its may not be able to effectively manage the company growth and the increased complexity of its business, which could negatively impact the company brand and financial performance.</li><li>Major fraud, lapses of internal control or system failures could adversely impact the company's business.</li><li>The company continue to explore the diversification of its business and the implementation of new products. These diversifications and its other strategic initiatives may not be successful, which may adversely affect its business and results of operations.</li><li>Its insurance coverage may not adequately protect the company against losses, and successful claims against it that exceed the company insurance coverage could harm its results of operations and diminish the company financial position.</li><li>Delay in delivery of the products due to breakdown of machinery.</li><li>Its actual results could differ from the estimates and projections used to prepare the company financial statements.</li><li>Any future acquisitions, joint ventures, partnerships, strategic alliances, tie-ups, or investments could fails to achieve expected synergies and may disrupt its business and harm the results of operations and the company financial condition.</li><li>There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.</li><li>Some of the KMPs is associated with the company for less than one year.</li><li>The average cost of acquisition of Equity Shares by the Promoters may be less than the Issue Price.</li><li>Industry information included in this Red Herring Prospectus has been derived from industry reports commissioned by it for such purpose. There can be no assurance that such third-party statistical, financial, and other industry information is either complete or accurate.</li><li>The Equity Shares have never been publicly traded, and, after the issue, the equity shares may experience price and volume fluctuations, and an active trading market for the equity shares may not develop. Further, the price of the equity shares may be volatile, and you may be unable to resell the equity shares at or above the issue price, or at all.</li><li>There are restrictions on daily weekly monthly movement in the price of the equity shares, which may adversely affect the shareholder's ability to sell for the price at which it can sell, equity shares at a particular point in time.</li><li>Industry information included in this Red Herring Prospectus has been derived from publicly available industry reports and/or websites. There can be no assurance that such third-party statistical financial and other industry information is either complete or accurate.</li><li>QIB and Non-Institutional Investors are not permitted to withdraw or lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage after submitting a Bid.</li><li>Investors will not be able to sell immediately on an Indian stock exchange any of the Equity Shares they purchase in the Issue.</li><li>Any future issuance of Equity Shares may dilute the shareholding of the Investor, or any sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the trading price of the Equity Shares.</li><li>Its may not receive final listing and trading approvals from the Stock Exchanges and you will not be able to sell immediately on an Indian Stock Exchange any of the Equity Shares you are allotted in the Offer.</li><li>The Issue price of its Equity Shares may not be indicative of the market price of the company Equity shares after the issue.</li><li>Sale of Equity Shares by its Promoters or other significant shareholder(s) may adversely affect the Trading price of the Equity Shares.</li></ul>

The Issue type of Silky Overseas Ltd is Book Building - SME.

The minimum application for shares of Silky Overseas Ltd is 800.

The total shares issue of Silky Overseas Ltd is 1905600.

Initial public offer of upto 19,05,600 equity shares of face value of Rs. 10.00 each ("Equity Shares") of Silky Overseas Limited (the "Company" or the "Issuer") for cash at a price of Rs. 161 per equity share including a share premium of Rs. 151 per equity share (the "Issue Price") aggregating to Rs. 30.68 crores ("The Issue"). The issue includes a reservation of upto 3,13,600 equity shares aggregating to Rs. 5.05 will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The issue less the market maker reservation portion i.e. net issue of upto 15,92,000 equity shares aggregating to Rs. 25.63 crores (the "Net Issue").