Saraswati Saree Depot IPO subscription status: On Tuesday, the second day of subscriptions, Saraswati Saree Depot, a significant player in the wholesale saree market, got 16.34 times subscriptions to its initial public offering.
While the retail investor category saw 20.30 times subscriptions, the non-institutional investor part received 57.18 times subscriptions. Qualified Institutional Buyers (QIBs) received a quota that was 1.32 times subscription.
Despite the muted market circumstances on Monday, Saraswati Saree Depot Ltdhad a good launch with the retail and non-institutional investors part being completely subscribed. Saraswati Saree IPO subscription status was 4.37 times, on the first bidding day.
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Saraswati Saree Depot IPO Review
Marwadi Shares and Finance Ltd
The brokerage claims that the business would list at a P/E of 21.46x with a market size of ₹634 Cr, taking into account the FY24 EPS of ₹7.46 on a post issue basis. In comparison, its rivals, Go Fashion (India) Ltd and Sai Silks (Kalamandir) Limited, are trading at P/E of 70x and 23.9x, respectively.
Due to the company’s varied product range and diversified supplier and customer base, the brokerage has granted a “Subscribe” grade to its initial public offering. In addition, it is reasonably priced when compared to its competitors.
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Swastika Investmart Ltd
The brokerage claims that Saraswati Saree Depot, which has a wide range of suppliers and clients, is a leading force in the wholesale saree market. It has a competitive edge because to its large product selection, which includes over 300,000 SKUs, and its bulk buying capabilities. Even though the business has continued to be profitable, negative cash flow is still a problem.
The wholesale saree market is very seasonal, has thin margins, and is extremely competitive and fragmented. Saraswati Saree Depot’s P/E valuation of 17.93x is appropriate in spite of these difficulties. We advise investors with a high tolerance for risk and a long investment horizon to consider this IPO, taking into account the competitive environment, industry trends, and cash flow problems.
