Saraswati Saree Depot IPO Kicks Off Today: GMP, Subscription Status, and What You Need to Know Before Investing

Saraswati Saree Depot Limited’s initial public offering (IPO) has started today, August 12, 2024. The IPO will be open for bidding until August 14, 2024. The company is offering shares at a price between ₹152 and ₹160 each.

Here’s a quick overview of the IPO:

• IPO Details: The company aims to raise ₹160.01 crore from this IPO. Out of this, ₹104 crore is through new shares, and ₹56.01 crore is from existing shares being sold.
• Grey Market Premium (GMP): Before the IPO officially opens, the shares are trading at a premium of ₹34 in the grey market.
• Subscription Status: By midday on the first day, the IPO had been subscribed 1.07 times overall. The retail portion is booked 2.05 times, and the non-institutional investor (NII) segment is booked 2.35 times.
• Lot Size: Investors can apply in lots, with each lot containing 90 shares.
• Important Dates: The share allocation is expected on August 16, 2024, and the listing on the stock exchanges (BSE and NSE) is likely to occur on August 20, 2024.
• Registrar: Bigshare Services Private Limited is handling the IPO registration.
• Lead Manager: Unistone Capital Private Limited is managing the IPO.

Should You Invest?

According to Akriti Mehrotra, a research analyst at StoxBox, the IPO is worth considering. Saraswati Saree Depot has a strong B2B saree wholesale business and has successfully expanded into other clothing areas. The company’s revenue and profits have grown significantly, and it has a reasonable P/E ratio of 17.9x based on FY24 earnings. This makes it a good option for investors with a medium to long-term view.

Ventura Securities also recommends subscribing to the IPO. The company has shown steady growth in sales and profits over the years and plans to use the funds from the IPO to support its working capital needs and further growth.

In summary, the Saraswati Saree Depot IPO seems promising with its strong growth potential and reasonable pricing.