The category reserved for non-institutional investors was the most subscribed at 31.68 times, followed by retail investors at 14.17 times and qualified institutional buyers (QIBs) at 1.24 times.
The IPO includes a fresh issue of up to 65 lakh shares. actions and an offer for sale (OFS) of up to 35 lakh equity shares by the promoter group.
Saraswati Saree Depot IPO Price Band
The company has fixed a price band of Rs 152-160, in which investors can bid for 90 shares in one lot and in subsequent multiples.
Saraswati Saree Depot GMP IPO
In the unlisted market, the company’s shares are trading at a GMP of Rs 75, which translates to a 47% premium over the issue price.
Saraswati Saree Depot IPO Review
Analysts advised that only high-risk investors should subscribe to the issue, taking into account the industry dynamics, competitive landscape and cash flow concerns.
“The wholesale saree industry is highly competitive and fragmented, with low margins and significant seasonality. Despite these challenges, Saraswati Saree Depot’s P/E valuation of 17.93x looks reasonable,” Swastika Investmart said.
Other details
Saraswati Saree Depot Limited is a key player in the B2B segment of sarees and traces its roots in the saree business back to the year 1966. It is also engaged in the wholesale business of other women’s apparel such as kurtis, dress materials, blouses, lehengas, trousers, etc. On an average, more than 90% of its total revenue is generated from the sale of sarees.Read also: Ola’s electric rally teaches GMP trackers! What’s behind the post-listing price discovery
The company sources sarees from various manufacturers across India and has developed relationships in hubs such as Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata and Bengaluru. Saraswati Saree Depot Limited, which operates from two stores located in Maharashtra (Kolhapur and Ulhasnagar), has over 300,000 different SKUs in its product portfolio.
In fiscal year 2024, the company reported a revenue of Rs 610 crore with a net profit of Rs 29.52 crore.
Single-color stone Capital Private Limited is the lead book-runner, while Bigshare Services Private Limited is the registrar to the offer.
(Disclaimer: The recommendations, suggestions, views and opinions of the experts are their own and do not represent the views of Economic Times)
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