The initial public offer (IPO) of Saraswati Saree Depot will open for subscription today and will be available for public to bid till August 16.
The IPO includes a fresh issue of up to 65 lakh equity shares and an offer for sale (OFS) of up to 35 lakh equity shares by the promoter group. Under the OFS, Tejas Dulhani, Amar Dulhani, Shevakram Dulhani, Sujandas Dulhani, Tushar Dulhani, and Nikhil Dulhani will be offloading their respective stakes.
Saraswati Saree Depot IPO price bandThe company has fixed a price band of Rs 152-160, where investors can bid for 90 shares in one lot and in multiples thereafter.
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Saraswati Saree Depot IPO GMP
In the unlisted market, the company’s shares are trading with a GMP of Rs 45, which translates to a premium of 45% to the issue price.
Saraswati Saree Depot IPO review
Analysts advised only high risk investors to subscribe to the issue, considering the industry dynamics, competitive landscape, and cash flow concerns.
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“The saree wholesale 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 appears reasonable,” said Swastika Investmart.
Other detailsSaraswati Saree Depot Limited is a key player in the sarees wholesale (B2B) segment and its origin into the sarees business dates back to the year 1966. It is also engaged in the wholesale business of other women’s apparel wear such as kurtis, dress materials, blouse pieces, lehengas, bottoms, etc.
On an average more than 90% of its total revenues are generated from sale of sarees.
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The company sources sarees from different manufacturers across India and has developed relationships in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru. Saraswati Saree Depot Limited which operates from two stores located in Maharashtra (Kolhapur and Ulhasnagar) lists more than 300,000 different SKUs in its product catalogue.
In fiscal 2024, the company reported a revenue of Rs 610 crore with a net profit of Rs 29.52 crore.
Unistone Capital Private Limited is the book-running lead manager to the issue, while Bigshare Services Private is the registrar to the offer.
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