Saraswati Saree Depot Share Price Highlights: Stock hits upper circuit after listing at 21.2% premium on NSE

Incorporated in 2021, Saraswati Saree Depot Ltd operates in the B2B (business to business) saree wholesale segment. It is also a wholesale of other women’s apparel items like kurtis, blouse pieces, dress materials, lehengas, and bottoms.

Started as a family business in 1966, the company 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 stock keeping units (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.

• Stock price: ₹203.7 (+5%)
• Open: ₹194
• High: ₹203.7
• Low: ₹186

• Traded volume (Lakhs): 39.60
• Traded value: ₹77.55 crore
• Total market capitalisation: ₹806.65 crore

The stock jumped 5% after listing to ₹203.7 apiece - its upper circuit limit.

Saraswati Saree Depot proposes to utilise the net IPO proceeds from the fresh issue towards funding working capital requirements and general corporate purposes.

The ₹160-crore initial share sale was subscribed 107.39 times, receiving bids for 107 crore shares against one crore shares on offer.

The bidding was led by non-institutional investors (NIIs), who subscribed 358.47 times the allotted quota. The portion for qualified institutional buyers (QIBs) fetched 64.12 times the subscription. The retail investors category attracted 61.59 times the subscription.

The initial public offering (IPO), with a price range of ₹152-₹160 per share, was a fresh issuance of up to 64.99 lakh equity shares and an offer for sale (OFS) of up to 35,01,000 equity shares.

The public offer was live from August 12 to August 14.

About Saraswati Saree Depot

The Kolhapur-based company operates in the B2B saree wholesale segment and also wholesales women's apparel such as kurtas, blouse pieces, dress materials, lehengas, and bottoms.

The company, which operates from two stores at Ulhasnagar and Kolhapur in Maharashtra, sources sarees from manufacturers across India.