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Introduction to Saraswati Saree Depot Ltd IPO
Incorporated back in the year 1996, Saraswati Saree Depot is coming out with a book of Rs 160.01 crore, comprising a fresh issue of 0.65 crore shares and an offer-for-sale of 0.35 crore shares. The Initial Public Offering (IPO) will issue on 12th August, 2024 and close on 14th August, 2024.
This IPO subscription is an amalgamation of a fresh issue of Rs 104 crore (0.65 crore shares) and an offer-for-sale of Rs 56.02 crore (0.35 crore shares). The firm will be listed on both BSE and NSE.
The allotment for the same will take place on 16th August 2024. The price band is set between Rs 152 and Rs 160 per share. The minimum lot size for a bid is 90 shares. Retail investors need to invest a minimum of Rs 14,400. Small NII investors require a minimum investment of Rs 201,600 for 1,260 shares, which is 14 lots. Large NII investors need a minimum investment of Rs 1,008,000 for 6,300 shares, which is 70 lots.
IPO’s registrar is Bigshare Services Private Limited. Unistone Capital Private Limited is the book-running lead manager of the Saraswati Saree Depot IPO.
Saraswati Saree Depot Ltd Company Details
Saraswati Saree Depot Limited specialises in the manufacturing and wholesale distribution of women’s apparel.
The company’s main focus is on wholesale sarees, but it also deals in other women’s clothing items like kurtis, dress materials, blouse pieces, lehengas, and bottoms.
Sarees are the major category of products, accounting for more than 90% of the company’s total revenues. During Fiscal 2023, they served more than 15,000 unique customers.
In 1993, the second generation of the Dulhani family reorganised their businesses and merged their sole proprietorships into a new partnership firm named “M/s Saraswati Sadi Depot.” The partnership was dissolved in 1996.
Saraswati Saree Depot Limited obtains its sarees from various manufacturers spread across the country, whose supply hubs are located at Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.
They interact with over 900 weavers and suppliers across the country and have more than 300,000 different SKUs in the product catalogue.
Saraswati Saree Depot Ltd’s current CEO and MD is Vinod Dulhani, and it has 9 directors as of now.
Saraswati Saree Depot Ltd IPO Details:
| Saraswati Saree Depot Ltd IPO Opening Date and Closing Date | 12th August to 14th August |
| Saraswati Saree Face Value | Rs 10 per share |
| Saraswati Saree IPO Price Band | Rs 152 to Rs 160 per share |
| Saraswati Saree Share Lot Size | 90 Shares |
| Saraswati Saree IPO Total Issue Size | 10,000,800 shares (aggregating up to Rs 160.01 Cr) |
| Fresh Issue | 6,499,800 shares (aggregating up to Rs 104.00 Cr) |
| Offer for Sale | 3,501,000 shares (aggregating up to Rs 56.02 Cr) |
| Issue Type | Book Built Issue IPO |
| Saraswati Saree Listing At | NSE, BSE |
| Shareholding Pre Issue | 33,100,000 |
| Shareholding Post Issue | 39,599,800 |
Saraswati Saree Depot IPO Tentative schedules:
| Saraswati Saree IPO Open Date | Monday, 12th August, 2024 |
| Saraswati Saree IPO Close Date | Wednesday, 14th August, 2024 |
| Basis of Allotment | Friday, 16th August, 2024 |
| Refund Initiation | Monday, 19th August, 2024 |
| Credit of Shares in Demat | Monday, 19th August, 2024 |
| Saraswati Saree Depot Listing Date | Tuesday, 20th August, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on 14th August, 2024 |
Investors Applications , Saraswati Saree Depot Ltd lot size, Shares And Their Value:
| Application | Lots | Shares | Amounts |
| Retail (Min) | 1 | 90 | Rs 14,400 |
| Retail (Max) | 13 | 1,170 | Rs 187,200 |
| S-HNI (Min) | 14 | 1,260 | Rs 201,600 |
| S-HNI (Max) | 69 | 6,210 | Rs 993,600 |
| B-HNI (Min) | 70 | 6,300 | Rs 1,008,000 |
Investors categories and Saraswati Saree Depot Ltd shares offered:
| Investor Category | Shares Offered |
| QIB Shares Offered | Not more than 50.00% of the Net Offer |
| Retail Shares Offered | Not less than 35.00% of the Offer |
| NII (HNI) Shares Offered | Not less than 15.00% of the Offer |
Saraswati Saree Depot Ltd Financials:
| Period Ended | 31st Mar, 2023 | 31st Mar, 2022 |
| Assets | Rs 188.85 Cr. | Rs 169.93 Cr. |
| Revenue | Rs 603.52 Cr. | Rs 550.31 Cr. |
| Profit After Tax | Rs 22.97 Cr. | Rs 12.31 Cr. |
| Net Worth | Rs 35.38 Cr. | Rs 12.41 Cr. |
| Total Borrowing | Rs 41.43 Cr. | Rs 66.62 Cr. |
Saraswati Saree Depot KPI:
The market capitalisation of Saraswati Saree Depot Ltd IPO is Rs 633.6 crore. As of 31st March, 2023, the KPI and their values are:
| Key Performance Indicators | Values |
| Return on Equity (ROE) | 96.15% |
| Return on Capital Employed (ROCE) | 98.03% |
| Debt to Equity Ratio (D/E) | 1.17 |
| Return on Net Worth (RoNW) | 64.93% |
| Price to Book Value (P/BV) | 14.97 |
Saraswati Saree Depot IPO GMP:
The GMP for the Saraswati Saree Depot IPO has not yet been declared.
Objectives of Saraswati Saree Depot Ltd IPO:
The revenue that the firm will get from this issue is aimed at financing the objects below:
- Funding the company’s working capital requirements.
- General corporate purposes.
Major Risks Associated with Saraswati Saree Depot Ltd IPO:
According to the Red Herring Prospectus (RHP) of Saraswati Saree Depot Ltd IPO, some internal risks are as follows:
- Their business is highly concentrated on the sale of women’s sarees and is vulnerable to variations in demand. Any changes in consumer preference could adversely affect their business, results of operations, and financial condition.
- They have two stores in Maharashtra, located in Kolhapur and Ulhasnagar. Any localised social unrest, natural disaster, or breakdown of services in and around Maharashtra could materially adversely affect their business and financial condition.
- They operate in the wholesale segment, which reduces their visibility and weakens any form of direct connection with the end consumers. This may result in poor brand awareness and loyalty-building.
- They operate in an industry that, by and large, is fairly competitive and fragmented, with various small, unorganised players. If they are unable to compete effectively, it could have an adverse impact on their business, results of operations, and financial condition.
- They have a seasonal business. Reduced revenues during the festive period of any fiscal year may impact adversely on their business, financial condition, results of operations, and prospects.
- Much of their sales are accordingly contributed from the Western zone, and any negative trend in this market could impact their operations.
Frequently Asked Questions (FAQs)
What could be the price band for the Saraswati Saree Depot IPO?
The IPO of Saraswati Saree Depot price band issue will be in the range of Rs 152 to Rs 160 per equity share.
How much is the quota for Retail Investors for an IPO application for Saraswati Saree Depot Ltd?
The quota for retail investors in the Saraswati Saree Depot IPO Application shall not be less than 35% of the issue.
Where can we track the performance of the Saraswati Saree Depot’s stock once it’s listed on the Stock Exchanges?
Unicorn Signals provides the track of a stock’s performance, two to three days later once it’s listed on the stock exchange.
How do you subscribe to Saraswati Saree Depot’s IPO?
A Subscription can be made from the opening to the closing date of the IPO. It can be done with your demat account, or you can contact your bank or financial institution for the same.
What is the closing time for the subscription of Saraswati Saree Depot’s IPO?
The Saraswati Saree Depot’s IPO subscription will end at 5 PM on 14th August 2024. However, most brokers will stop accepting applications between 1 PM and 3 PM.
Where can I get detailed information on the Saraswati Saree Depot Ltd IPO?
Detailed information on the Saraswati Saree Depot IPO can be found through the following documents filed with SEBI by the company.
