Saraswati Saree Depot IPO Soars: Day 2 Sees Massive Investor Interest and Rising GMP – Full Subscription Details Inside

The IPO of Saraswati Saree Depot is becoming increasingly popular as it has already been subscribed 10.33 times by the second day of bidding. The IPO, which closes tomorrow, saw a positive response from investors within hours of its launch.

Subscription Details

• Non-institutional investors: This category is the most subscribed, with 31.68 times the available shares.
• Retail investors: Their subscriptions are at 14.17 times.
• Qualified institutional buyers (QIB): This group has subscribed 1.24 times.

IPO Structure

The offering includes a fresh issue of up to 65 lakh equity shares and an offer for sale of up to 35 lakh shares by the promoter group. The price band is set at Rs 152-160 per share, and investors must bid in lots of 90 shares or multiples thereof.

Grey Market Premium (GMP)

In the unlisted market, Saraswati Saree Depot’s shares are trading at a premium of Rs 75, which is 47% above the issue price.

Analyst Insights

Analysts suggest that only investors who are willing to take high risks should consider subscribing to the IPO, due to the competitive nature and low margins in the saree wholesale industry. Despite these challenges, the company’s price-to-earnings (P/E) ratio of 17.93x is viewed as reasonable by Swastika Investmart.

About Saraswati Saree Depot

Saraswati Saree Depot is a major player in the B2B saree wholesale market, with roots dating back to 1966. The company also wholesales other women’s apparel such as kurtis, dress materials, and lehengas. Over 90% of its revenue comes from saree sales. The company sources its sarees from various manufacturers across India, including Surat, Varanasi, and Kolkata. It operates from two stores in Maharashtra and offers a wide range of over 300,000 products.

In the fiscal year 2024, the company reported revenue of Rs 610 crore and a net profit of Rs 29.52 crore.

Unistone Capital Private Limited is the lead manager for the issue, and Bigshare Services Private Limited is the registrar.