Saraswati Saree Depot shares make a strong debut, list at 21% premium on NSE

Incorporated in 1996, Saraswati Saree Depot has carved out a niche in the manufacturing and wholesale of women's apparel.

Saraswati Saree Depot Ltd made a strong debut on the NSE, with shares listing at Rs 194, a 21 percent premium over the issue price of Rs 160.

The Rs 160.01 crore IPO consisted of a fresh issue of 0.65 crore shares aggregating to Rs 104 crore, and an offer for sale of 0.35 crore shares totalling Rs 56.02 crore. Saraswati Saree Depot set its price band between Rs 152 and Rs 160 per share

The IPO bidding commenced on August 12 and closed on August 14 with the allotment finalised on August 16. The lead manager for the issue was Unistone Capital Pvt Ltd, with Bigshare Services Pvt Ltd acting as the registrar.

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The IPO was subscribed 107.39 times by its closing on August 14.  The public issue was subscribed 61.6 times in the retail category, 64.1 times in the QIB category, and 358.5 times in the NII category.

The proceeds from the IPO are earmarked to fund the company's working capital requirements and general corporate purposes.

For the financial year ending March 31, 2024, the company reported a 2 percent increase in revenue to Rs 612.6 crore and a 29 percent rise in profit after tax (PAT) to Rs 29.5 crore compared to the previous year.

Also Read | Analysts expect Saraswati Saree Depot to debut with decent double-digit gains on Tuesday

Incorporated in 1996, Saraswati Saree Depot has carved out a niche in the manufacturing and wholesale of women's apparel. While the company is predominantly known for its sarees, which account for over 90 percent of its revenue, it also deals in other apparel such as kurtis, dress materials, blouse pieces, lehengas, and bottoms. The company sources its products from over 900 weavers and suppliers across India. It served a vast customer base in Maharashtra, Goa, Karnataka, and Tamil Nadu. The company recorded sales to over 13,000 unique customers in FY24.

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