Saraswati Saree Depot shares close 31% higher in debut trade; hit upper circuit limit

Saraswati Saree Depot

Shares of Saraswati Saree Depot on August 20 ended with a premium of over 31 percent against the issue price of Rs 160.

The stock made its debut at Rs 200, registering a jump of 25 percent from the issue price on the BSE. It later zoomed 31.21 percent to hit the upper circuit limit of Rs 209.95.

On the NSE, shares of the firm listed at Rs 194, up 21.25 percent. The stock ended at Rs 203.70, a surge of 27.31 percent.

The company's market valuation stood at Rs 831.40 crore.

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On the volume front, 10.27 lakh shares of the firm were traded on the BSE and 40.90 lakh shares on the NSE during the day.

The initial public offer of Saraswati Saree Depot, a key player in the saree wholesale segment, got subscribed a whopping 107.39 times on the last day of subscription on Wednesday.

The Rs 160-crore initial share sale had a price range for the offer at Rs 152-160 per share.

The company proposes to utilise the net proceeds from the fresh issue towards funding working capital requirements and general corporate purposes.

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The Kolhapur-based company, whose origin in the sarees business dates back to the year 1966, is also engaged in the wholesale business of women's apparel such as kurtis, dress materials, blouse pieces, lehengas and bottoms.

The company sources sarees from different manufacturers across India and has developed relationships in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.

Saraswati Saree Depot operates from two stores at Kolhapur and Ulhasnagar in Maharashtra.