Saraswati Saree Depot IPO: Price band set at ₹152-160 per share; check other details here

The price band for the IPO of Saraswati Saree Depot has been set between ₹152 and ₹160 per equity share. The company plans to raise ₹160 crore through this initial public offering, comprising 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 net proceeds from the IPO will be utilised for funding the company's working capital requirements and general corporate purposes. The IPO will open for subscription on August 12, 2024, and will close on August 14, 2024.

The allotment of shares for the Saraswati Saree Depot IPO is expected to be finalised on Friday, August 16, 2024, with the tentative listing on the BSE and NSE scheduled for Tuesday, August 20, 2024.

Retail investors can participate in the IPO by bidding with a minimum of one lot, which consists of 14 shares. At the upper price band of ₹160, the minimum investment required for retail investors would be ₹14,400.

The allocation of the net issue is structured with 50% reserved for qualified institutional buyers, 15% for non-institutional investors, and a minimum of 35% for retail investors, all on a proportionate basis.

About Saraswati Saree Depot

The company is a key player in the saree wholesale (B2B) segment, and its origin in the saree business dates back to the year 1966. It is also engaged in the wholesale business of other women’s apparel, such as kurtis, dress materials, blouse pieces, lehengas, bottoms, etc.

90% of its total revenues are generated from the sale of sarees. In fiscal 2023, the company served over 15,000 unique customers and crossed ₹6,000 million in sales. Its product catalog consists of more than 3,00,000 different SKUs, its DRHP showed. 

The Indian saree market has traditionally been dominated by small, unorganised retail shops with a loyal customer base, often stocking sarees based on local demand. However, with the rising aspirations of the middle class and increasing disposable incomes, organised players are entering the market, particularly targeting the mid- to premium segments.

As disposable income grows and the desire for branded apparel increases, there is a significant opportunity for organised, branded saree retailers to cater to this demand, leveraging the shift towards branded and quality products.

According to the DRHP, the company sources sarees from different manufacturers across India. Over the years, it has developed relationships with these manufacturers in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.

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