Saree retailers from southern India, including RSB Retail India, Marri Retail, Pothys and Nalli Silk Sarees, are preparing to raise nearly ₹20,000 crore through initial public offerings (IPOs) over the next six to eight months, according to an Economic Times report.
Bankers reportedly told that IPOs offer a way for these ethnic women’s wear retailers to monetise and create value from the brand equity built over decades. “Most of these saree retailers have so far been concentrated in metro and tier-1 cities in south India,” Bhavesh Shah, managing director and head of investment banking at Equirus Capital, was quoted as saying.
With access to fresh capital, these companies are expected to expand into tier-2 and tier-3 markets, where both population and purchasing power are rising. Shah noted that equity funding is a good strategy to capitalise on this opportunity.
RSB Retail has already filed papers for a ₹1,500 crore issue. Marri Retail and Pothys are planning IPOs of ₹2,000 crore and ₹1,200 crore, respectively, while heritage retailer Nalli Silk is also exploring a public listing.
The IPO proceeds are likely to be used to expand store networks, strengthen supply chains and boost online sales, riding the wave of consumption-led growth in ethnic wear.
Currently, Hyderabad-based Sai Silks (Kalamandir) is the only listed saree retailer from southern India. Since its listing in September 2023, its stock has fallen nearly 32%, though it has gained about 27% in the past six months, as per the report.
Amid rising consumption, increasing incomes and policy push to boost spending, saree retailers are reportedly seizing the moment to go public. “In South India, people go above and beyond to spend on occasions and festivals, and if they have to splurge, sarees remain the preferred apparel,” says an expert.
