Investors Flock to Saraswati Saree Depot IPO: 47x Subscription on Day 3, GMP Surges – Latest Updates Here!

The initial public offering (IPO) of Saraswati Saree Depot has been receiving strong interest from investors, with the issue being subscribed nearly 47 times as of the third day of the bidding process. The IPO will close on Wednesday.

The non-institutional investors’ category has seen the highest demand, with subscriptions reaching 201 times. Retail investors have subscribed 41 times, while qualified institutional buyers (QIB) have subscribed 4.21 times.

The IPO consists of a fresh issue of up to 65 lakh shares and an offer for sale (OFS) of up to 35 lakh equity shares by the promoter group.

Saraswati Saree Depot IPO Price Band

The company has set a price range of Rs 152-160 per share. Investors can bid for a minimum of 90 shares in one lot, with additional bids in multiples of that amount.

Saraswati Saree Depot IPO GMP

In the grey market, the shares of the company were trading at a premium of Rs 100, which is about 62% higher than the issue price.

Saraswati Saree Depot IPO Review

Analysts have recommended that only investors with a high-risk tolerance should consider subscribing to this IPO due to the industry’s competitive nature, challenging cash flow, and low margins.

“The saree wholesale industry is highly competitive and fragmented, with low margins and significant seasonality. Despite these challenges, Saraswati Saree Depot’s P/E valuation of 17.93x seems reasonable,” said Swastika Investmart.

Other Details

Saraswati Saree Depot Limited is a significant player in the sarees wholesale (B2B) market, with a history in the saree business dating back to 1966. The company also deals in other women’s apparel like kurtis, dress materials, blouse pieces, lehengas, and bottoms.

Sarees account for over 90% of the company’s total revenues. The company sources its sarees from various manufacturers across India, establishing relationships in key hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru. Saraswati Saree Depot operates from two stores located in Maharashtra (Kolhapur and Ulhasnagar) and offers over 300,000 different SKUs in its product catalog.

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

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