Saraswati Saree Depot IPO Nears Full Subscription with 89% Booked: Retail and NII Segments Fully Subscribed

The initial public offering (IPO) of Saraswati Saree Depot Ltd is showing positive momentum, especially within the retail and non-institutional investor segments. As of 11:39 IST, the IPO has reached 89% of its subscription goal, receiving bids for 88,92,000 shares against the total 1,00,00,800 shares available, according to data from the Bombay Stock Exchange (BSE).

The retail investor segment has been notably active, with subscriptions reaching 1.75 times the allotted shares. Similarly, the non-institutional investors (NII) segment has subscribed 1.84 times their designated share allotment. However, the qualified institutional buyers (QIB) segment is still pending full subscription.

In terms of the IPO’s structure, up to 50% of the shares are reserved for QIBs, a minimum of 15% is set aside for NIIs, and at least 35% of the offering is earmarked for retail investors. The IPO window opened today, Monday, August 12, and will close on Wednesday, August 14. The price range for each share is set between ₹152 and ₹160, with a face value of ₹10 per share. Investors have the option to bid in lots of 90 shares or in multiples thereof.

In a statement released via the Financial Express, the company indicated that its price-to-earnings (P/E) ratio, based on both basic and diluted earnings per share (EPS) for the fiscal year 2024, stands at 17.04 times at the floor price and 17.94 times at the cap price. This compares to the industry average P/E ratio of 46.57 times. Saraswati Saree Depot’s listed industry peers include Go Fashion (India) Ltd, with a P/E ratio of 71.80 times, and Sai Silks (Kalamandir) Ltd, with a P/E ratio of 21.34 times.

Financially, Saraswati Saree Depot Limited reported a 29% increase in profit after tax (PAT) from March 31, 2023, to March 31, 2024, alongside a 2% rise in revenue during the same period.