Saraswati Saree Depot files draft papers to raise funds via IPO

Saraswati Saree Depot files IPO papers

Maharashtra-based Saraswati Saree Depot has filed preliminary papers with market regulator Sebi to raise funds via an initial public offering (IPO).

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

Tejas Dulhani, Amar Dulhani, Shevakram Dulhani, Sujandas Dulhani, Tushar Dulhani, and Nikhil Dulhani are the part of promoter group, selling shares in the OFS.

The sarees wholesaler will be utilising net fresh issue proceeds mainly for working capital requirements, and general corporate purposes.

More than 90 percent of its business is generated from sale of sarees, though it is also engaged in the wholesale business of other women’s apparel wear including kurtis, dress materials, blouse pieces, lehengas, and bottoms.

In the year ended March FY23, it has served over 15,000 unique customers and its product catalogue consists of more than 3,00,000 different SKUs (stock keeping units).

The ethnic wear garment company surpassed Rs 600-crore mark in sales in the fiscal FY23 with revenue from operations growing to Rs 601.9 crore, from Rs 549.6 crore in FY22. Net profit during the same period increased to Rs 22.97 crore, from Rs 12.3 crore.

Unistone Capital has been appointed as the merchant banker to the issue, while Bigshare Services is the registrar.