Some of South India’s best-known saree retailers are preparing to tap equity markets, with plans to raise nearly ₹20,000 crore through public offerings over the next six to eight months, according to investment banking executives. The line-up includes RSB Retail India, Marri Retail, Pothys, and legacy brand Nalli Silk Sarees.
Bankers say these IPOs will allow heritage retailers, many of which have operated for decades in metro and tier-1 markets, to monetise brand equity and fund expansion into tier-2 and tier-3 cities where both population and disposable income are on the rise.
RSB Retail has already filed draft papers for a ₹1,500 crore issue, while Marri Retail and Pothys are preparing offerings of ₹2,000 crore and ₹1,200 crore respectively. Nalli Silk Sarees, a household name in Tamil Nadu, is also exploring a market debut. Emails sent to the companies went unanswered.
Funds raised are expected to support expansion of store networks, supply chain investments and a bigger push into e-commerce, as organised players try to capture more share of India’s vast ethnic wear market. Currently, organised retailers account for only about 30 percent of the saree business, leaving room for growth.
Hyderabad-based Sai Silks (Kalamandir) is the only listed saree retailer so far. Since its September 2023 listing, its stock is down 32 percent but has gained 27 percent in the past six months, reflecting renewed investor interest in ethnic wear companies.
Analysts highlight that sarees, with high repeat purchases during festivals and weddings, offer strong margins of 40 to 50 percent and low inventory risk. As Angel One’s Vaqarjaved Khan noted, “Sarees are timeless products with strong cash conversion.”
For retailers rooted in tradition, public markets now present an opportunity to stitch together scale and modern growth.
