Kala Mandir – a popular retail store network in Andhra Pradesh and Bangalore is taking IPO route to collect around 90 crores to meet the working capital requirement for the capital expansion. The speciality of this IPO is that the promoter is giving the ‘safety net’ option to retail IPO allotted to exit the company if share falls below IPO price. The promoters will pay the IPO price to the retail investor in the first six months. This option is devised by SEBI long back. But only one company (Usha Agro) has used it seven years back.

The promoters of the group Chalavadi Naga Kanaka Durga Prasad and Kalyan Srinivas attended the IPO press meet held at Taj Deccan today to explain about Sai Silks (Kalamandir) IPO. The issue opens on 11 Feb and ends on 13 feb.