Sai Silks (Kalamandir) Limited has announced the expansion of its retail presence in Tamil Nadu with the extension of its existing store at Hosur. The company disclosed this development in compliance with regulatory requirements under the Securities and Exchange Board of India regulations.

Store Expansion Details

The expansion involves the extension of the existing Kanchipuram Varamahalakshmi Silks store located at Hosur, Tamil Nadu. The key parameters of this capacity addition are outlined below:

Regulatory Compliance

The company made this disclosure pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended. This regulation mandates listed companies to inform stock exchanges about material events and corporate developments that could impact investor decisions.

Company Information

Sai Silks (Kalamandir) Limited operates under CIN U52190TG2008PLC059968 and maintains its registered office at Ameerpet, Hyderabad, Telangana. The company is listed on both major Indian stock exchanges:

The disclosure was signed by M.K. Bhaskara Teja, Company Secretary & Compliance Officer, confirming the company's commitment to maintaining transparency with its stakeholders regarding operational developments and capacity expansions.

Sai Silks (Kalamandir) Limited shares experienced their steepest decline since listing, falling over 12% on Monday following the release of underwhelming third-quarter business results. The stock emerged as the top loser on the BSE Smallcap index, marking the third consecutive day of losses for the textile retailer.

Q3 Performance Shows Revenue Decline

The company's exchange filing revealed disappointing quarterly performance metrics that triggered the sharp sell-off:

The December quarter turnover of ₹411.00 crore represented an 8% decline compared to the ₹449.00 crore reported during the same quarter in the previous year. However, the company's nine-month performance showed resilience with revenue growing 16% year-on-year to ₹1,235.00 crore from ₹1,063.00 crore during the corresponding period.

Expansion Activities Continue Despite Revenue Pressure

Despite the revenue challenges, Sai Silks maintained its expansion strategy during the quarter. The company opened five new retail outlets across different formats:

• One store under the Kanchipuram Varamahalakshmi Silks format
• Four stores under the Valli Silks format

This expansion demonstrates the company's commitment to growing its retail footprint even amid challenging market conditions.

Trading Activity and Stock Performance

Monday's trading session witnessed exceptional market activity for Sai Silks shares:

The 62 lakh shares traded represented the highest volumes in three months, with delivery volumes of 24.30 lakh shares significantly exceeding the 20-day average of 2.60 lakh shares. This elevated delivery activity suggests genuine selling pressure rather than speculative trading.

Stock Performance Since IPO

The textile retailer's stock performance has been challenging since its market debut. With Monday's decline, the stock has dropped 40% from its issue price of ₹222.00 per share. The majority of this decline occurred in recent months, as the stock had retested its IPO price levels in October of the previous year before the recent downturn began.

Monday's 12% fall marked the biggest single-day decline since the company's listing in September 2023, highlighting investor concerns about the company's near-term business prospects despite its ongoing expansion efforts.