Saraswati Saree Depot IPO subscription status: On the third day of bidding, retail investors followed non-institutional investors, who continued to dominate subscription numbers. According to BSE data, the Saraswati Saree Depot IPO subscription status was 35.08 times as of 12:00 IST.
According to BSE records, 35,08,41,510 shares were bid on in the initial share sale, with 1,00,00,800 shares on offer.
Non-institutional investors received 146.35 subscriptions, while retail investors earned 35.46. Qualified Institutional Buyers (QIBs) received a quota that was 1.44 times the subscription.
Saraswati Saree Depot, a major player in the wholesale saree business, received 16.34 times as many registrations for its initial public offering on Tuesday, the second day of subscriptions.
While retail investor subscriptions increased by 20.30 times, non-institutional investor subscriptions increased by 57.18 times. QIBs received a quota that was 1.32 times their subscription.
Despite the sluggish market conditions on Monday, Saraswati Saree Depot Ltd had a successful launch, with the retail and non-institutional investors segments fully subscribed. On the first bidding day, the Saraswati Saree IPO subscription status increased by 4.37 times.
The retail investor part received 5.39 times as many subscriptions as the non-institutional investor quota. The QIB section has been scheduled 1.19 times.
Saraswati Saree Depot IPO has reserved at least 50% of the public issue’s shares for QIBs, at least 15% for NIIs, and at least 35% for retail investors.
The issuance has set a price band of ₹152 to ₹160 per equity share with a face value of ₹10. The sale, which closes on Wednesday, August 14, allows investors to bid for up to 90 shares or multiples of that amount.
Founded in 1966, the Kolhapur-based company first focused on the saree industry. It now sells a large selection of women’s clothing in bulk, including bottoms, lehengas, kurtis, dress fabrics, & blouse pieces.
IPO Review for Saraswati Saree Depot
Marwadi Shares and Finances Ltd.
According to the brokerage, the business would be listed at a P/E of 21.46x, with a market size of ₹634 Cr and a post-issue EPS of ₹7.46 for FY24. In comparison, its competitors, Go Fashion (India) Ltd and Sai Silks (Kalamandir) Limited, trade at 70x and 23.9x P/E ratios, respectively.
The brokerage has assigned a “Subscribe” rating to the company’s initial public offering because to its diverse product line and supplier and customer base. It is also reasonably priced in comparison to its competitors.
Swastika Investmart Limited
According to the brokerage, Saraswati Saree Depot, which has a diverse spectrum of suppliers and clients, is a market leader in wholesale sarees. It has a competitive advantage due to its extensive product variety, which includes over 300,000 SKUs, and bulk purchasing possibilities. Even though the company has continued to be profitable, negative cash flow remains a challenge.
The wholesale saree business is very seasonal, with razor-thin margins and a high level of competition and fragmentation. Despite these issues, Saraswati Saree Depot’s P/E ratio of 17.93x is reasonable. We recommend that investors with a high risk tolerance and a long investment horizon examine this IPO, taking into account the competitive climate, industry trends, and cash flow concerns.
Saraswati Saree Depot’s IPO information
The IPO comprises the promoter group’s offer for sale (OFS) of 35 lakh equity shares and a new issue of up to 65 lakh equity shares.
The IPO size is ₹160 crore at the higher price level. The net proceeds from the new offering will be used to satisfy working capital needs as well as other corporate objectives. Bigshare Services is the issue registrar, while Unistone Capital is the book running lead manager for the offer.
Tejas, Amar, Shevakram, and Sujandas Dulhani are the promoters selling their interests, with each giving 700,200 equity shares. Tushar and Nikhil Dulhani are selling 350,100 equity shares each.
Saraswati Saree Depot’s IPO GMP today
Saraswati Saree’s IPO GMP today is +80. Investorgain.com reports that Saraswati Saree’s share price was trading at a premium of ₹80 in the gray market.
Saraswati Saree shares are expected to be listed at ₹240 per share, 50% higher than the IPO price of ₹160, taking into account the upper end of the IPO price band and the current grey market premium.
Today’s IPO GMP predicts higher and anticipates a strong listing based on grey market activity over the last seven sessions. Investorgain.com experts estimate a minimum GMP of ₹20 and a maximum of ₹80.
‘Grey market premium’ implies investors’ willingness to pay more than the issue price.
