Saraswati Saree Depot Files for IPO to Raise Funds

3 Oct 2023 , 08:13 AM

Maharashtra-based Saraswati Saree Depot has submitted preliminary papers to the market regulator Sebi for an initial public offering (IPO).

The IPO will consist of a fresh issue of 72.45 lakh equity shares and an offer-for-sale (OFS) of 35.55 lakh shares by the promoter group.

Promoters Tejas Dulhani, Amar Dulhani, Shevakram Dulhani, Sujandas Dulhani, Tushar Dulhani, and Nikhil Dulhani will participate in the OFS.

Saraswati Saree Depot plans to utilize the net proceeds from the fresh issue primarily for working capital requirements and general corporate purposes.

While more than 90% of its business comes from saree sales, the company also wholesales other women’s apparel such as kurtis, dress materials, blouse pieces, lehengas, and bottoms.

In the fiscal year ending March 2023, the company achieved sales exceeding Rs 600 crore, with revenue from operations growing to Rs 601.9 crore from Rs 549.6 crore in the previous fiscal year. Net profit for the same period increased to Rs 22.97 crore from Rs 12.3 crore.

The proposed IPO is set to be listed on both the BSE and NSE, with Unistone Capital serving as the merchant banker and Bigshare Services as the registrar.