Saraswati Saree Depot lists at 21% premium on NSE

Saraswati Saree Depot IPO debut: Maharashtra-based Saraswati Saree Depot's shares made an impressive debut on the stock exchanges today, opening with notable premiums over their issue price. On the National Stock Exchange (NSE), the stock commenced trading at Rs 194 per share, marking a 21.25 per cent premium above the issue price of Rs 160. On the Bombay Stock Exchange (BSE), the shares opened at Rs 200 apiece, reflecting a 25 per cent increase from the issue price.

Market analysts had anticipated the share price to range between Rs 200 and Rs 210 per share on debut. The company, a significant player in the wholesale saree market, saw its stock perform strongly despite a varied response from investors.

The Saraswati Saree Depot IPO saw robust interest, with the overall subscription standing at 107.52 times. Non-institutional investors led the subscription numbers with a 358.65 times subscription rate, whereas retail investors recorded a 61.88 times subscription rate. Qualified Institutional Buyers (QIBs) also exhibited strong demand, subscribing 64.12 times their allotted quota.

The IPO saw an initial strong response, with subscriptions reaching 16.34 times on the second day, following a 4.37 times subscription rate on the first day.

For the IPO, Saraswati Saree Depot allocated up to 50 per cent of shares to QIBs, at least 15 per cent to non-institutional investors (NII), and a minimum of 35 per cent to retail investors. The price band for the issue was set between Rs 152 and Rs 160 per equity share, with each share having a face value of Rs 10. Investors were allowed to place bids in multiples of 90 shares.

Founded in 1966 and based in Kolhapur, Saraswati Saree Depot has been a major player in the saree manufacturing industry. The company now also offers a variety of women’s clothing including bottoms, lehengas, kurtis, dress materials, and blouse pieces. It has built strong partnerships with manufacturers across key Indian cities such as Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.

The IPO consists of a promoter group's offer for sale (OFS) of 35 lakh equity shares and a new issue of up to 65 lakh equity shares. The total issue size is capped at Rs 160 crore. The net proceeds from the new issuance will be utilised for working capital requirements and other corporate objectives. Bigshare Services is the issue registrar, and Unistone Capital is the book-running lead manager.

Promoters Tejas, Amar, Shevakram, and Sujandas Dulhani are each selling 700,200 equity shares, while Tushar and Nikhil Dulhani are each offering 350,100 equity shares.