Saraswati Saree Depot Ltd made a significant debut on the National Stock Exchange (NSE) today, opening at ₹194 per share, which is a 21% premium over its issue price of ₹160. The company’s Initial Public Offering (IPO) raised ₹160.01 crore, consisting of a fresh issue of ₹104 crore from 0.65 crore shares and an offer for sale of ₹56.02 crore from 0.35 crore shares.
The IPO, which was available for bidding from August 12 to August 14, had a price band set between ₹152 and ₹160 per share. It garnered immense interest, being oversubscribed by 107.39 times overall. In particular, the non-institutional investors category saw a staggering 358.5 times subscription, while qualified institutional buyers (QIBs) subscribed 64.1 times, and retail investors subscribed 61.6 times.
Founded in 1996, Saraswati Saree Depot has established itself as a leader in the manufacturing and wholesale of women’s apparel, with sarees accounting for over 90% of its revenue. The company sources products from more than 900 weavers across India and has a customer base exceeding 13,000 across Maharashtra, Goa, Karnataka, and Tamil Nadu.
In the fiscal year ending March 31, 2024, Saraswati Saree Depot reported a revenue increase of 2% to ₹612.6 crore and a 29% rise in profit after tax to ₹29.5 crore compared to the previous year. The proceeds from the IPO will be utilized to bolster the company’s working capital needs and for general corporate purposes.
Analysts had anticipated a positive listing for the stock, with expectations of a listing gain of around 25-28%. The strong demand in the grey market prior to listing further indicated a favorable market reception for the company’s shares
