Saraswati Saree Depot Shares Shine on Debut

20 Aug 2024 , 03:37 PM

Saraswati Saree Depot Ltd made a good debut on the NSE, closing shares at ₹203.7, a 27% premium over the issue price of ₹160.

The ₹160.01 crore IPO included a new issue of 0.65 crore shares worth ₹104 crore and an offer for sale of 0.35 crore shares worth ₹56.02 crore. Saraswati Saree Depot has fixed its price band between ₹152 and ₹160 per share.

The IPO bidding began on August 12 and ended on August 14, with the allotment finalised on August 16. Unistone Capital Pvt Ltd led the issue, with Bigshare Services Pvt Ltd acting as the registrar.

By the time the IPO closed on August 14, it had been subscribed 107.39 times.  The public offering was subscribed to 61.6 times in the retail category, 64.1 times in the QIB category, and 358.5 times in the NII category.

The revenues from the IPO will be used to fund the company’s working capital and general business objectives.

For the fiscal year ended March 31, 2024, the company recorded a 2% increase in revenue to ₹612.6 crore and a 29% increase in profit after tax (PAT) to ₹29.5 crore over the previous year.

Saraswati Saree Depot, founded in 1996, has established a niche in the manufacturing and wholesale of women’s garments. While the company is best known for its sarees, which generate more than 90% of its income, it also sells kurtis, dress materials, blouse pieces, lehengas, and bottoms. The company gets its products from more than 900 weavers and vendors in India. It served a large consumer base across Maharashtra, Goa, Karnataka, and Tamil Nadu. In fiscal year 24, the company sold to more than 13,000 unique clients.

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