Saraswati Saree Depot to Open IPO on August 12

7 Aug 2024 , 04:16 PM

Saraswati Saree Depot Ltd, a significant player in the sarees wholesale (B2B) segment, has set a price band of ₹152-160 per share for its ₹160 Crore Initial Public Offering (IPO).

The IPO will open for public subscription on August 12 and close on August 14. Bidding for anchor investors will open for one day on August 9.

The IPO consists of a fresh issue of up to 65 lakh equity shares and an Offer for Sale (OFS) of 35 lakh equity shares by the promoter group. At the upper end of the price band, the IPO size is estimated to be ₹160 Crore. The net proceeds from the fresh issue will be used to fund working capital requirements and general corporate purposes.

Originating in 1966, the Kolhapur-based company is also engaged in the wholesale business of other women’s apparel, including kurtis, dress materials, blouse pieces, lehengas, and bottoms.

The company sources sarees from various manufacturers across India, establishing relationships in key hubs such as Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.

Saraswati Saree Depot operates from two stores located in Maharashtra, specifically in Kolhapur and Ulhasnagar.

In Fiscal 2024, the company reported a revenue of ₹610 Crore and a net profit of ₹29.52 Crore. The issue size allocation is as follows: 50% reserved for qualified institutional investors, 35% for retail investors, and 15% for non-institutional investors.

Unistone Capital is the book running lead manager for the offer, while Bigshare Services is the registrar for the issue. The equity shares are expected to be listed on the BSE and NSE on August 20.