Saraswati Saree Depot IPO booked 4.37 times, retail, NII portion fully subscribed; check GMP, subscription status

Saraswati Saree Depot IPO subscription status: The initial public offering of Saraswati Saree Depot Ltd is off to a positive start with the retail and non-institutional investors portion being fully subscribed amid subdued market conditions. Saraswati Saree Depot IPO subscription status was 4.37 times.

The IPO received bids for 4,37,44,950 shares against 1,00,00,800 shares on offer, according to BSE.

The portion for retail investors attracted 5.39 times subscription while the quota for non-institutional investors (NII) got subscribed 12.62 times. The qualified institutional buyers (QIB) portion has been booked 1.19 times.

Saraswati Saree Depot IPO has reserved not more than 50% of the shares in the public issue for QIB, not less than 15% for NII, and not less than 35% of the offer is reserved for retail investors.

The initial share sale which has opened today (Monday, August 12), has set its price band in the range of ₹152 to ₹160 per equity share of the face value of ₹10 each. The offering, which ends on Wednesday, August 14, allows investors to place bids for up to 90 shares, or multiples of that number.

The company in an advertisement on financial express stated that the price to earnings ratio based on basic and diluted EPS for fiscal 2024 for the company at the floor price is 17.04 times at the cap price is 17.94 times as compared to the average industry peer group P/E ratio of 46.57 times.

As per the red herring prospectus (RHP), the company's listed peers are Go Fashion (India) Ltd (with a P/E of 71.80 times), and Sai Silks (Kalamandir) Ltd (with a P/E of 21.34 times).

From March 31, 2024, to March 31, 2023, Saraswati Saree Depot Limited's profit after tax (PAT) climbed by 29% while revenue increased by 2%.

The Kolhapur-based firm was founded in 1966 and first focused on the saree industry. Today, it also sells various women's clothing items in bulk, including kurtis, dress materials, blouse pieces, lehengas, and bottoms.

The firm has established connections in major cities such as Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru by sourcing sarees from various producers around India.

Saraswati Saree Depot is run out of two Maharashtra locations: Ulhasnagar and Kolhapur.

Saraswati Saree Depot IPO details

The promoter group's offer for sale (OFS) of 35 lakh equity shares and a new issue of up to 65 lakh equity shares make up the IPO.

The IPO size is set at ₹160 crore at the upper end of the price range. The firm intends to cover working capital needs and other corporate objectives using the net proceeds from the new issuance. Bigshare Services is the issue registrar, while Unistone Capital is the book running lead manager for the offer.

The shareholders being sold by the promoters are Tejas, Amar, Shevakram, and Sujandas Dulhani, each of whom is offering 700,200 equity shares. 350,100 equity shares each are being sold by Tushar and Nikhil Dulhani.

Saraswati Saree Depot IPO GMP today

Saraswati Saree IPO GMP today is +60. This indicates Saraswati Saree share price were trading at a premium of ₹60 in the grey market, according to investorgain.com.

Considering the upper end of the IPO price band and the current premium in the grey market, the estimated listing price of Saraswati Saree share price was indicated at ₹220 apiece, which is 37.5% higher than the IPO price of ₹160.

Today's IPO GMP indicates higher and anticipates a solid listing based on the activity of the grey market over the past five sessions. According to investorgain.com experts, the lowest GMP is ₹20 and the maximum GMP is ₹60.

'Grey market premium' indicates investors' readiness to pay more than the issue price.'

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