Saraswati Saree Depot Limited

About Saraswati Saree Depot Limited  Incorporated in 2021, Saraswati Saree Depot Limited operates in the B2B saree wholesale segment. The company also wholesales other women’s apparel items such as kurtis, dress materials, blouse pieces, lehengas, and bottoms.  The company started as a family business in 1966 and showed consistent growth until it crossed ₹200 crore in sales in FY14. In 2015, operations shifted to the newly constructed premises at Kolhapur, Maharashtra, a complex that spans over ~169,120 sq. ft. To expand its product portfolio, the company started offering ready-made garments in 2017.  As of FY24, its product catalog consisted of more than 3,00,000 SKUs. At the same time, it served over 13,000 unique customers and crossed ₹600 crore in sales. On average, more than 90% of the company’s total revenue is generated from the sale of sarees.  The company sources its sarees from different manufacturers in various parts of India, such as Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru. It has developed relationships with more than 900 weavers/suppliers.  Between FY22 and FY24, its revenue from operations rose at a CAGR of 3.57%, while net profit surged over 33%. Moreover, the saree industry in India is expected to grow at a CAGR of 5% to 6% between FY24 and FY29 to reach ₹625-650 billion, which could benefit the company.  And now, Saraswati Saree Depot Limited is coming out with its initial public offer (IPO). The total IPO issue size is ₹160.01 crore, comprising fresh issue, aggregating to ₹104 crore, as well as an offer for sale, aggregating to ₹56.02 crore. The money raised from the fresh issue will be utilised for working capital requirements and general corporate purposes. Its shares will be listed on the NSE and BSE.  Here are key details about the Saraswati Saree Depot IPO:     Company Name  Saraswati Saree Depot Limited   Company Type  Private    Company Established On  2021   Saraswati Saree Depot Limited IPO Opening Date  12th August 2024    Saraswati Saree Depot Limited IPO Closing Date  14th August 2024   Saraswati Saree Depot Limited IPO Allotment Status  16th August 2024    Credit of Shares to the Demat Account  19th August 2024   Saraswati Saree Depot Limited IPO Listing Date  20th August 2024    Saraswati Saree Depot Limited IPO Face Value  ₹10 per share   Saraswati Saree Depot Limited IPO Lot Size  90 shares    Saraswati Saree Depot Limited IPO Issue Size  Approx ₹160 crore   Saraswati Saree Depot Limited IPO to be Listed on  BSE, NSE    Saraswati Saree Depot Limited IPO Price band  ₹152 – ₹160 per share        Financial snapshot     Particulars  FY22  FY23  FY24    Revenue  ₹ 549 crore  ₹ 601 crore  ₹ 610 crore    Net Profit  ₹ 12.3 crore  ₹ 22.9 crore  ₹ 29.5 crore               Here’s a quick look at Saraswati Saree Depot Limited IPO’s strengths, weakness, opportunities and risks (SWOT analysis)  Strengths and opportunities   Diversified customer base present in India's southern and western regions comprising Maharashtra, Goa, Karnataka and Tamil Nadu as of FY23.  The vast and versatile product portfolio for women’s apparel with more than 300,000 different SKUs.  It has a diverse supplier base, with its top 10 suppliers representing only 22% of its total purchases in FY23.  The company has the capacity to buy in bulk quantities, as its two stores collectively span an aggregate area of 185,121 sq. feet, hence reducing the costs associated with placing frequent small orders.  As it has been in business for over five decades, it has strong and long-standing relationships with clients and suppliers, which offers it benefits in terms of pricing, design exclusivity, and payment terms.   Risks and threats   The business is highly dependent on the sale of women’s sarees, which contributed 91% to the total revenue from operations in FY23.  The business is concentrated in Maharashtra and is subject to risks such as local social unrest, natural disasters, or breakdown of services, which can adversely affect its business.  It operates in a highly competitive and unorganized market, with the organized sector accounting for only 25% to 30% of the overall saree market.  Business is subject to seasonality, which can impact sales volume and may cause revenues to vary significantly between different quarters in a fiscal.  The high volume, low margin nature of the business could substantially affect its net bottom lines if there is a sudden change in price movements or ad hoc anomalies.  The company experienced negative cash flows from operating activities in FY22, financial activities in FY23, and investing activities in FY22 and FY23.            Saraswati Saree Depot Limited IPO details  | Saraswati Saree Depot Limited IPO date  According to the offer document filed by the company with the SEBI, the Saraswati Saree Depot IPO’s opening date – in other words, the Saraswati Saree Depot IPO launch date – will be 12th August 2024. The Saraswati Saree Depot IPO closing date is 14th August 2024. After this, investors will be updated about the allotment status on 16th August 2024.  Investors who have been allotted shares can expect them to be credited to their demat account on 19th August 2024. The Saraswati Saree Depot IPO listing date is 20th August 2024. The listing date is the date on which a company's shares are listed on the bourses—NSE and BSE.  | Saraswati Saree Depot Limited IPO Price Band  The IPO is a fresh issue and an offer for sale. The Saraswati Saree Depot IPO price band has been set between ₹152 and ₹160 per share. Interested investors can choose a price within this band to apply for the IPO.  The Saraswati Saree Depot IPO listing price will be determined on 20th August 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.  | Saraswati Saree Depot Limited IPO Lot size  The Saraswati Saree Depot IPO details have been declared. The Saraswati Saree Depot IPO lot size is set at 90 shares, and an investor can apply for a minimum of 1 lot. Meanwhile, the Saraswati Saree Depot IPO issue size is approx ₹160 crore.           How to pre-apply for the Saraswati Saree Depot Limited IPO?  You can pre-apply for the Saraswati Saree Depot Limited IPO on Upstox. The pre-application for this IPO, which means pre-apply open date, usually begins a day before the IPO opens for subscription.  Follow these steps to pre-apply for the IPO:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Saraswati Saree Depot Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Pre-Apply’  Accept the mandate on your UPI app            How to apply for the Saraswati Saree Depot Limited IPO?  If you are interested in this investment opportunity but unsure how to apply for the Saraswati Saree Depot Limited IPO, here we are listing out the steps for you.  When the public issue opens for subscription, one can follow this step-by-step guide on how to apply for the Saraswati Saree Depot Limited IPO on Upstox:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover tab, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, look for the ‘Saraswati Saree Depot Limited IPO’ tab and click on it  Now fill in all the required information, like ‘bid price’ and ‘lot size’  Confirm and click on ‘Apply’  Accept the mandate on your UPI app            How to check the Saraswati Saree Depot Limited IPO allotment status?  When the allotment process is completed, you can check the status of your application on the Upstox app. Share allotment is generally done around five to six days after an IPO closes.  Here’s a step-by-step guide on how to check the Saraswati Saree Depot Limited IPO allotment status:   Login to your Upstox account, using your six-digit PIN  After successfully logging in, click on ‘Discover’  On the Discover page, you will find the ‘Invest in IPO’ section  Under the Invest in IPO section, you will find the ‘View all’ option  Once you click on ‘View all’, you will be directed to the ‘IPO’ tab  In the ‘IPO’ tab, click on ‘My applications’  In ‘My applications’, under the History section, your Saraswati Saree Depot Limited IPO allotment status will be mentioned    Check Allotment Status           Open a demat account with Upstox to apply for the Saraswati Saree Depot Limited IPO  To apply for the Saraswati Saree Depot Limited IPO, you need to mandatorily have a demat account. A demat account helps you hold the shares you buy in a dematerialised format. If you don’t have a demat account yet, you can open one with Upstox by visiting our website or by downloading the app.  Here is a step-by-step guide on how to open a demat account with Upstox:   Click here to visit the demat account opening page on the Upstox website.  Enter your phone number and other essential details to begin opening a demat account.  Upload the scanned copies of your PAN, Aadhaar card, a cancelled cheque, and your bank statement as needed.  Complete the e-verification using the OTP sent to your registered mobile number.   This is all it takes to open a demat account with Upstox. Easy and quick, right?   Open Demat Account           Upstox – trading app to apply for the Saraswati Saree Depot Limited IPO  Applying for IPOs with Upstox is extremely easy. The user-friendly interface and top-notch security make Upstox one of the leading trading apps in India.  You can apply for the Saraswati Saree Depot Limited IPO on Upstox, provided you have a demat account. As mentioned in the previous section, you can simply follow the steps to open a demat account with Upstox. The biggest advantage is that when you apply for an IPO using your Upstox account, the brokerage charges are zero.  In fact, courtesy of its robust features and minimal charges, Upstox is among the most preferred trading apps. Lakhs of Indians trust Upstox as it is a reliable trading platform that makes IPO applications easy.