Saraswati Saree Depot IPO: Price band fixed at ₹152-160 per share, issue to open on August 12

Women’s apparel and saree wholesaler Saraswati Saree Depot Ltd on Wednesday fixed the price band at ₹152-₹160 per share for its upcoming initial public offering (IPO).

Saraswati Saree Depot's IPO will open for subscription on August 12, and the bidding window will close on August 14. The company seeks to raise a total of ₹160 crore from the maiden public offer.

Saraswati Saree Depot IPO details

The IPO of Saraswati Saree Depot comprises a fresh issue of 64.9 lakh equity shares worth up to ₹104 crore and an offer for sale of over 35 lakh shares worth up to ₹56.02 crore.

Promoters Tejas Dulhani, Amar Dulhani, Sujandas Dulhani and Shevakram Dulhani are selling 7.11 lakh shares each while Tushar Dulhani and Nikhil Dulhani are selling 3.55 lakh shares each through the OFS.

Bigshare Services Private Limited is the IPO registrar and Unistone Capital Pvt Ltd is the book-running lead manager.

Saraswati Saree Depot IPO is expected to finalise the share allotment on August 16, 2024. The company has proposed to list shares on BSE and NSE on August 20, 2024.

Saraswati Saree Depot IPO objective

The company has proposed to utilise IPO proceeds from the fresh issue to fund its working capital requirements and other general corporate purposes. Funds received from the offer-for-sale component will go to selling shareholders.

The company will utilise ₹81 crore of IPO proceeds for financing the working capital requirements and the rest for general corporate purposes. It will use the proceeds for business development initiatives meeting any expenses including salaries and wages, rent and other administrative costs.

Saraswati Saree Depot key financials

The sarees segment accounts for more than 90% of its revenue. The company reported revenue of ₹610.90 crore in 2023-24, ending March 31, 2024, against ₹601.89 crore in 2022-23. Net profit was ₹29.53 crore in FY24 against ₹22.97 crore in the preceding fiscal.

About Saraswati Saree Depot

Kolhapur-based Saraswati Saree Depot is a leading wholesaler of women’s apparel and sarees in the B2B segment. The company started business in 1966 and has expanded its portfolio to kurtis, blouse pieces, dress materials, lehengas and bottoms.

The company sources sarees and other women’s apparel from more than 900 weavers/suppliers in different states of India. Its product catalogue currently lists more than 300,000 different SKUs.

The company sells its products mainly in the southern and western regions, comprising Maharashtra, Goa, Karnataka, and Tamil Nadu. In FY2023, it served more than 15,000 unique customers.