Saraswati Saree Depot IPO initial public offering opens for public subscription today. The IPO, which closes on August 14, has a price band of Rs 152-160 crore and an issue size of Rs 1,601 crore.
The IPO is a combination of a fresh issue of 65 million shares for an aggregate issue size of Rs 1,040 crore and an offer for sale of 35 million shares worth Rs 560.2 crore. The minimum lot size for application is 90 shares.
Saraswati Saree Depot’s IPO shares will be listed on the BSE and NSE.
Saraswati Saree Depot has reserved 50 per cent of the net issue amount to qualified institutional buyers (QIBs), 35 per cent to retail investors and the remaining 15 per cent to non-institutional investors (NIIs).
The company plans to use Rs 810 crore of the IPO proceeds as working capital. It also plans to utilise the IPO proceeds to strengthen sales through e-commerce channels to benefit from changing customer trends.
The company is into wholesale trade of sarees, women’s apparel including kurtis, dress materials, lehengas, blouses and bottoms. In FY24, Saraswati Saree Depot Ltd. earned revenue of Rs 6.1 crore and net profit of Rs 295 crore. In the previous financial year (2022-23), its revenue was Rs 6.01 crore and profit after tax was Rs 229 crore.
Unistone Capital Pvt Ltd is the book-running lead manager for the Saraswati Saree Depot IPO and Bigshare Services Pvt Ltd is the registrar for the issue.
