The retail and non-institutional halves of the Saraswati Saree Depot initial public offering (IPO) have reached full subscription. The IPO subscription status was 4.37 times. The August 12–14 offering, with a price range of ₹152–160, is open to bids for up to 90 shares.
Despite the muted market, Saraswati Saree Depot Limited’s IPO is off to a good start with the retail and non-institutional investors component being fully subscribed. Saraswati Saree Depot’s IPO subscription status was 4.37 times.
4,37,44,950 of the 1,00,00,800 shares of Saraswati saree depot that were offered in the IPO were the subject of bids, according to the BSE.
Saraswati Saree Depot IPO Is Good or Bad?
The retail investor part saw 5.39 times as many subscriptions as the non-institutional investor (NII) quota, which saw 12.62 times as many subscriptions. The qualified institutional buyers (QIB) section has been booked 1.19 times.
The Saraswati Saree Depot Initial Public Offering (IPO) has set aside a minimum of 15% of its shares for NII, a maximum of 50% of its shares for QIB, and a minimum of 35% of its shares for retail investors.
The price band of Saraswati Saree Depot for the first share sale, which began today, Monday, August 12, is ₹152 to ₹160 for each equity share with a face value of ₹10. The offering is open to bidders for up to 90 shares, or multiples of that number, and closes on Wednesday, August 14.
The Saraswati Saree Depot Private Limited claimed in a Financial Express advertisement that, for fiscal 2024, their P/E ratio, based on basic and diluted EPS, is 17.04 times the floor price and 17.94 times the cap price, compared to the average of 46.57 times for industry peer groups.
The company’s listed peers, according to the red herring prospectus (RHP), are Sai Silks (Kalamandir) Ltd. (P/E of 21.34 times) and Go Fashion (India) Ltd. (P/E of 71.80 times).
While revenue increased by 2%, Saraswati Saree Depot Limited’s profit after tax (PAT) improved by 29% between March 31, 2024, and March 31, 2023.
Saraswati Saree Depot Details
Established in 1966, the Kolhapur-based company first concentrated on the saree sector. These days, it also offers a wide range of women’s clothes in bulk, such as bottoms, lehengas, kurtis, dress materials, and blouse pieces.
By procuring sarees from numerous makers around India, the company has developed relationships in important towns including Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.
Saraswati Saree Depot operates out of Ulhasnagar and Kolhapur in Maharashtra.
Saraswati Saree Depot IPO details
The promoter group would offer 35 lakh equity shares for sale (OFS) as part of the IPO, in addition to a new issue of up to 65 lakh equity shares.
At the top of the price range, ₹160 crore is the IPO size. The company will use the net proceeds from the new offering to finance working capital needs as well as other corporate objectives. The issue registrar for the offer is Bigshare Services, and the book-running lead manager is Unistone Capital.
Tejas, Amar, Shevakram, and Sujandas Dulhani are the promoters selling their shares; each is offering 700,200 equity shares. Nikhil and Tushar Dulhani are selling 350,100 stock shares apiece.
Saraswati Saree Depot IPO GMP today
Saraswati Saree Depot’s current IPO GMP is +60. According to investorgain.com, this shows that the price of Saraswati Saree shares was trading at a premium of ₹60 on the black market.
Saraswati Saree’s expected listing price was ₹220 per share, 37.5% more than the IPO price of ₹160, taking into account the upper end of the IPO pricing band and the current premium in the grey market.
Based on the grey market’s activity over the last five sessions, the IPO GMP shows higher and predicts a strong listing. The experts at investorgain.com state that the GMP ranges from ₹20 to ₹60.
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