Saraswati Saree Depot LTD, has established itself as a respected name in the saree trading business over the years. Their decision to go public may signal plans for expansion and growth in the competitive textile retail sector.
Saraswati Saree Depot is a key player in the sarees wholesale (B2B) segment (Source: CRISIL Report) and their origin in the sarees business dates back to the year 1966. They are also engaged in the wholesale business of other women’s apparel wear such as kurtis, dress materials, blouse pieces, lehengas, bottoms, etc. On average more than 90% of their total revenues are generated from the sale of sarees.
Table of Contents
Issuance Period
Saraswati Saree Depot IPO opens for subscription on August 12, 2024 and closes on August 14, 2024. The allotment for the Saraswati Saree Depot is expected to be finalized on Friday, August 16, 2024 and will list on BSE, NSE with tentative listing date fixed as Tuesday, August 20, 2024.
IPO Size
Total Amount to be Raised: ₹160.01 Crores.
GMP ( Grey /market Premium )
Current GMP is 45 rupees per share as on 11 august 2024, In Percentage is 28.12%.
Current GMP is 60 rupees per share as on 12 august 2024, In Percentage is 37.50%.
Current GMP is 75 rupees per share as on 13 august 2024, In Percentage is 46.88%.
Current GMP is 100 rupees per share as on 14 august 2024, In Percentage is 62.50%.
Current GMP is 55 rupees per share as on 15 august 2024, In percentage is 34.38%.
Current GMP is 36 rupees per share as on 16 august 2024, In percentage is 22.50%
Lot Size
The minimum lot size for an application is 90 Shares. The minimum amount of investment required by retail investors is ₹14,400. The minimum lot size investment for sNII is 14 lots (1,260 shares), amounting to ₹201,600, and for bNII, it is 70 lots (6,300 shares), amounting to ₹1,008,000.
The allotment for the IPO is expected to be finalized on Friday, August 16, 2024 will list on BSE, NSE with tentative listing date fixed as Tuesday, August 20,2024.
IPO Details :
| IPO Size | 160.01 Crores |
| Face Value | ₹10 per share |
| Price Band | ₹152 to ₹160 per share |
| Lot Size | 90 Shares |
| Total Issue Size | 10,000,800 shares |
| Fresh Issue | 6,499,800 shares |
| Offer for Sale | 3,501,000 shares of ₹10 |
| Retail Quota | 35% |
| NII Quota | 15% |
| QIB Quota | 50% |
| Issue Type | Book Built Issue |
| Listing At | BSE, NSE |
| Share holding pre issue | 33,100,000 |
| Share holding post issue | 39,599,800 |
Objectives of the Issue :
1 .Funding working capital requirements of the company.
2. General corporate purposes
About Company –
Incorporated in 1996, Saraswati Saree Depot Limited is engaged in manufacturing and wholesale women’s apparel.
The company’s primary business is the wholesale (B2B) segment of sarees. It is also engaged in the wholesale business of other women’s apparel, such as kurtis, dress materials, blouse pieces, lehengas, bottoms, etc.
The company regularly sources sarees and other women’s apparel from more than 900 weavers/suppliers across different states in India. Currently, our product catalog lists more than 300,000 different SKUs. The company majorly sells products in southern and western regions comprising mainly Maharashtra, Goa, Karnataka, and Tamil Nadu and the company has served more than 13,000 unique customers in fiscal 2024.
Promoters Names:
Shankar Dulhani
Vinod Dulhani
Mahesh Dulhani
Rajesh Dulhani
Saraswati Saree Depot Limited Financial Information :
Company’s revenue increased by 9.67% and profit after tax (PAT) rose by 86.66% between the financial year ending with March 31, 2023 and March 31, 2022.
| Period | Mar-24 | Mar-23 | Mar-22 |
| Assets | 205.94 | 188.85 | 169.93 |
| Revenue | 612.58 | 603.52 | 550.31 |
| Profit After Tax | 29.53 | 22.97 | 12.31 |
| Net Worth | 64.91 | 35.38 | 12.41 |
| Total Borrowing | 43.49 | 41.43 | 66.62 |
IPO Strengths
Top 10 customers contributed 8.89% and 7.90% in 2023, 2022.
Top 10 suppliers accounted for 22.83% and 26.98% in purchases.
Their stores offer diverse sarees and a variety of non-saree apparel.
The saree products offered at their stores are highly diversified in terms of occasion, fabric, weave, pattern and ornamentations. They also have a wide variety of non-saree apparel products.
IPO Risks
Their business is highly concentrated on the sale of women’s sarees. Any changes in consumer preferences could have a disruptive effect on the survival of the business.
They operate out of two stores in Maharashtra, which are located at Kolhapur and Ulhasnagar. Any local social unrest, natural disaster or breakdown of services could have an adverse effect on their business and financial condition.
Their business is subject to seasonality. Lower revenues in the peak season of any fiscal year may adversely affect their overall business for the year.
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