Saraswati Saree Depot IPO Listing: Stock list at 21% premium on NSE

Saraswati Saree Depot IPO Listing

Saraswati Saree Depot IPO Listing: Shares Surge to Upper Circuit After Debut at 21% Premium, Highlighting Robust Business Health

The much-anticipated initial public offering (IPO) of Saraswati Saree Depot made a spectacular debut on the Indian stock exchanges today, reflecting strong market confidence and the company’s robust financial health.

The IPO, which was open for subscription from August 12 to August 14, aimed to raise ₹160.01 crore. Saraswati Saree Depot, a prominent name in the women’s apparel industry, saw its shares listed at a notable premium, signaling a positive response from investors and a strong start to its public market journey.

A Glorious Debut: Share Performance

Saraswati Saree Depot’s shares, priced at ₹160 per share under the IPO, made a remarkable entry into the stock market today.

On the Bombay Stock Exchange (BSE), the shares were listed at ₹200, representing an initial gain of approximately 25% over the issue price.

On the National Stock Exchange (NSE), the shares debuted at ₹194, which also reflects a significant premium of around 21% compared to the issue price.

The positive momentum did not stop there. As trading progressed, Saraswati Saree Depot’s shares reached the upper circuit limit of ₹209.95 on the BSE.

This limit is set to prevent excessive volatility and trading fluctuations. The stock maintained this upper circuit limit throughout the day, closing at ₹209.95 on the BSE.

This translates to a substantial first-day gain of 31.21% for investors who subscribed to the IPO at the issue price. Such a strong performance on the first day is a clear indicator of both investor confidence and the company’s solid market positioning.

Exceptional Demand: IPO Subscription Details

The IPO of Saraswati Saree Depot received an overwhelming response from the investment community, underscoring the high demand and investor confidence in the company.

The offering was subscribed a remarkable 107.39 times overall. This high level of subscription highlights not only the market’s trust in Saraswati Saree Depot but also the growing interest in the consumer goods sector.

Breaking down the subscription data:

• Qualified Institutional Buyers (QIBs): This category was oversubscribed by 64.12 times. QIBs, which include large financial institutions and mutual funds, are considered a critical gauge of an IPO’s potential as they bring substantial investment and stability.
• Non-Institutional Investors (NIIs): This segment, which includes high-net-worth individuals (HNWIs) and corporate entities, saw an even more impressive oversubscription rate of 358.47 times. This high demand from NIIs indicates a strong belief in the company’s growth prospects.
• Retail Investors: The portion allocated to retail investors, or individual investors, was oversubscribed by 61.59 times. This robust interest from retail investors reflects the widespread appeal of the IPO among everyday investors.

The IPO comprised the issuance of new shares worth ₹104.00 crore. Additionally, 35.01 lakh shares with a face value of ₹10 each were sold through the Offer for Sale (OFS) window.

The proceeds from the OFS will be distributed to the selling shareholders, while the funds raised through the issuance of new shares are intended to be used for meeting working capital requirements and other general corporate purposes.

This strategic allocation of funds is expected to support the company’s operational efficiency and growth initiatives.

About Saraswati Saree Depot: Company Profile

Established in 1996, Saraswati Saree Depot has carved out a significant niche in the women’s apparel sector. The company specializes in the manufacture and distribution of a wide range of women’s clothing, including sarees, lehengas, kurtis, blouse pieces, and bottoms.

With a reputation for quality and reliability, Saraswati Saree Depot has become a trusted name among traders and retailers across India.

The company’s financial performance over recent years has been impressive. In the fiscal year 2022, Saraswati Saree Depot reported a net profit of ₹12.31 crore.

This figure saw substantial growth in the following years, with net profit increasing to ₹22.97 crore in the fiscal year 2023 and further rising to ₹29.53 crore in 2024.

This consistent growth in profitability demonstrates the company’s strong operational performance and its ability to scale its business effectively.

Additionally, the company’s revenue has experienced steady growth. Over the same period, Saraswati Saree Depot achieved a compound annual growth rate (CAGR) of over 5% in revenue, which reached ₹612.58 crore.

This growth is indicative of the company’s successful market strategies and its ability to capture and expand its market share in a competitive industry.

Future Outlook and Strategic Plans

With its successful IPO and strong market debut, Saraswati Saree Depot is well-positioned for future growth. The funds raised through the IPO will enable the company to bolster its working capital, invest in new initiatives, and enhance its operational capabilities.

This financial strength will support Saraswati Saree Depot’s strategic plans, including expanding its product offerings, enhancing its distribution network, and exploring new market opportunities.

Furthermore, the positive market reception and robust first-day performance provide a strong foundation for the company’s future stock performance.

The investor confidence demonstrated through the IPO subscription and share price appreciation is a testament to Saraswati Saree Depot’s promising growth prospects and its solid standing in the industry.

Final Remarks

The Saraswati Saree Depot IPO has set a high benchmark with its impressive market debut and exceptional subscription figures.

The strong listing performance and substantial first-day gains reflect the company’s robust financial health and the confidence investors have in its future prospects.

As Saraswati Saree Depot embarks on its journey as a publicly listed company, it is poised to leverage its new capital to drive growth, enhance operational efficiency, and continue its success in the women’s apparel sector.

The company’s successful entry into the stock market is a promising indicator of its potential and a significant milestone in its corporate journey.