Saraswati Saree Depot has set the price range for its IPO between ₹152 and ₹160 per share. The company aims to raise ₹160 crore through this public offering. This includes a fresh issue of 0.65 crore shares, worth ₹104 crore, and an offer for sale of 0.35 crore shares, valued at ₹56.02 crore.
The money raised from the IPO will be used to meet the company’s working capital needs and for general corporate purposes. The IPO will be open for subscription from August 12, 2024, to August 14, 2024.
The final allocation of shares is expected to be completed on Friday, August 16, 2024, and the shares will likely be listed on the BSE and NSE on Tuesday, August 20, 2024.
Retail investors can participate in the IPO by bidding for a minimum of one lot, which contains 14 shares. At the upper price band of ₹160 per share, the minimum investment required would be ₹14,400.
The shares from the net issue are distributed with 50% reserved for qualified institutional buyers, 15% for non-institutional investors, and at least 35% for retail investors, based on a proportionate basis.
About Saraswati Saree Depot:
Saraswati Saree Depot is a well-known player in the wholesale saree (B2B) market, with its roots going back to 1966. The company also deals in other women’s clothing, such as kurtis, dress materials, blouse pieces, lehengas, and bottoms.
Saree sales make up 90% of the company’s total revenue. In 2023, the company served over 15,000 unique customers and surpassed ₹6,000 million in sales. The company’s product catalog includes more than 3,00,000 different SKUs, according to its draft red herring prospectus (DRHP).
Traditionally, the Indian saree market has been dominated by small, unorganized retail shops with loyal customers, often stocking sarees based on local preferences. However, as the middle class grows and disposable incomes rise, organized players are entering the market, particularly focusing on the mid- to premium segments.
With increasing disposable income and a growing preference for branded clothing, there is a significant opportunity for organized saree retailers to meet this demand by offering branded and high-quality products.
The DRHP also mentions that the company sources its sarees from various manufacturers across India, having established strong relationships over the years with manufacturers in key saree-producing regions like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.
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