Silky Overseas Ltd., a fast-growing textile company based in New Delhi, specializes in the manufacturing of cotton blended yarns and has established a strong presence in both domestic and export markets. The IPO proceeds are earmarked for setting up new storage facilities, repaying debt, and meeting working capital requirements, further strengthening its supply chain. Silky Overseas IPO has an issue size of ₹30.68 crore, offering 19.06 lakh equity shares through a book-building process at a price band of ₹153 to ₹161 per share.
₹20
₹161
₹171.00
Expert Opinions
Market sentiment for the Silky Overseas IPO is cautiously optimistic, reflecting a stable SME IPO environment and investor confidence in companies with strong recent financial performance and export capabilities. The company’s strengths include a focus on quality and customization in its product portfolio under the Rian Décor brand, a growing presence in both domestic and international markets, and a demonstrated ability to rapidly scale revenues and profitability over recent years. However, risks such as dependence on customer orders, raw material price volatility, and a high debt/equity ratio of 1.7 could pose challenges.
The Silky Overseas IPO valuation analysis for FY2024 is underpinned by a robust Return on Equity (ROE) of 36.56%, a Return on Capital Employed (ROCE) of 39.54%, and a Net Asset Value (NAV) of ₹37.6, highlighting efficient capital utilization and strong profitability. For long-term investors, Silky Overseas’ ability to sustain growth, expand its global footprint, and manage sector-specific risks will be crucial to delivering sustainable returns in the competitive textile industry.
Investor Considerations
Investors evaluating the Silky Overseas IPO should first consider the company’s performance and fundamentals: Silky Overseas has demonstrated robust financial improvement, with revenue rising from ₹50.17 crore in FY2022 to ₹70.26 crore in FY2024, and profit after tax surging to ₹5.53 crore from ₹0.98 crore over the same period, reflecting strong operational efficiency and profitability. The sector outlook is positive, supported by steady demand for quality textiles, both domestically and internationally, and the company’s growing exports to regions like the Middle East, Africa, and Southeast Asia.
The Silky Overseas IPO valuation for FY2024 features a price-to-book value of 4.28, a PAT margin of 7.94%, and a debt/equity ratio of 1.70, indicating fair pricing, healthy profitability, and manageable leverage. Growth prospects are underpinned by expansion plans, product diversification, and a focus on exports. Key risk factors include dependence on customer orders, raw material price volatility, and sector competition. Short-term investors may target listing gains, while long-term investors should focus on the company’s ability to sustain growth, expand its global footprint, and maintain operational efficiency for sustainable returns.
| Date | GMP | Trend |
|---|---|---|
| 06 Jul 2025 17.10 | ₹20 | Down |
| 05 Jul 2025 10.28 | ₹25 | --- |
| 04 Jul 2025 10.39 | ₹25 | Down |
| 02 Jul 2025 16.03 | ₹45 | Up |
| 29 Jun 2025 10.53 | ₹15 | --- |
| 28 Jun 2025 13.49 | ₹15 | --- |
| 27 Jun 2025 13.24 | ₹15 | --- |
| 26 Jun 2025 12.23 | ₹15 | --- |
FAQs
The Grey Market Premium showed good accuracy in predicting Silky Overseas IPO’s listing performance. With a final GMP of ₹20, it suggested a premium of 12.42% over the issue price of ₹161. The stock listed at ₹171, delivering a gain of 6.21%. This resulted in a prediction error of 6.21%, where the GMP correctly signaled a positive listing but modestly overestimated the actual gains, demonstrating fair reliability in this case.
Silky Overseas IPO Current GMP is ₹20.
Silky Overseas IPO Expected Returns is 12.42%.
Silky Overseas IPO estimated listing price is ₹181.