₹ 14400
₹152- ₹160
90
₹194
21
14 Aug 2024
Download19 Aug 2024
20 Aug 2024
Application Details
Saraswati Saree Depot Limited is set to launch its Initial Public Offering (IPO) from August 12, 2024, to August 14, 2024, with a listing date scheduled for Tuesday, August 20, 2024. The face value of each share is ₹10, with the price band set between ₹152 to ₹160 per share. Investors can participate in the IPO with a minimum lot size of 90 shares.
The total issue size of the IPO comprises 10,000,800 shares, aggregating up to ₹160.01 crore. This includes a fresh issue of 6,499,800 shares, amounting to ₹104.00 crore, and an offer for sale of 3,501,000 shares, totaling ₹56.02 crore. The IPO will be conducted as a Book Built Issue.
Key dates for the IPO include the opening date on Monday, August 12, 2024, and the closing date on Wednesday, August 14, 2024. The basis of allotment will be finalized on Friday, August 16, 2024, with the initiation of refunds on Monday, August 19, 2024. The credit of shares to Demat accounts is also scheduled for Monday, August 19, 2024, with the listing on the stock exchange following on Tuesday, August 20, 2024.
For retail investors, the minimum application size is 1 lot of 90 shares, requiring an investment of ₹14,400. The maximum investment allowed for retail investors is 13 lots, totaling 1,170 shares, which amounts to ₹1,87,200.
About Saraswati Saree Depot Limited
Company Overview
Saraswati Saree Depot Limited is a prominent player in the wholesale (B2B) segment of women’s apparel, specializing primarily in sarees. Founded in 1966, the company has established itself as a key player in the industry, with a strong presence in India’s southern and western regions, including Maharashtra, Goa, Karnataka, and Tamil Nadu. Over 90% of the company’s revenue comes from the sale of sarees, making it the core of its business operations.
Business Evolution and Growth Plans
The company originated as a family business, with its roots in the saree industry dating back to 1966. In 1993, the second generation of the Dulhani family consolidated and reorganized their business under the partnership firm “M/s. Saraswati Sadi Depot,” which was later dissolved in 1996. The company was incorporated as “Saraswati Saree Depot Pvt. Ltd” in March 2021 and was subsequently converted into a public limited company in March 2023.
Looking ahead, Saraswati Saree Depot is planning to diversify into the men’s ethnic wear market, capitalizing on the growing trend of multi-day weddings and the increasing popularity of traditional outfits during festivals. This segment is expected to grow at a CAGR of 10-11% between FY2024 and FY2029, potentially reaching ₹3.8 – 3.9 trillion by FY2029.
Product Offerings and Supplier Network
The company’s product catalogue features more than 300,000 SKUs, including sarees, kurtis, dress materials, blouse pieces, lehengas, and bottoms. Saraswati Saree Depot sources its products from over 900 weavers and suppliers across India, building long-standing relationships with manufacturers in textile hubs such as Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru. The company’s ability to source diverse products has allowed it to maintain a varied product portfolio, catering to a wide range of customer preferences.
Market Presence and Customer Base
Saraswati Saree Depot has served over 13,000 unique customers in FY2024, reflecting its strong market presence and customer loyalty. The company operates two stores located in Kolhapur and Ulhasnagar, Maharashtra. The Kolhapur store is the major revenue driver, contributing ₹539.56 crore, which accounts for 88.32% of the company’s total revenues, while the Ulhasnagar store accounts for 11.68%.
FAQ
IPO stands for "Initial Public Offering." It's the process through which a privately-held company becomes publicly traded by offering its shares to the general public and listing them on a stock exchange for trading. This allows the company to raise capital from investors and grants individuals and institutions the opportunity to invest in and own a portion of the company.
The life cycle of an IPO, or Initial Public Offering, begins with a company's decision to go public. It involves hiring underwriters, registering with regulatory authorities, determining the IPO price, marketing to investors, and the subscription period where investors place orders for shares. After allocation and listing, shares become publicly tradable, and the company enters the secondary market. Ongoing reporting and corporate governance are crucial as the company continues to operate as a publicly-traded entity. The IPO aims to raise capital for growth and provides investors with opportunities to trade shares in the company.
An IPO (Initial Public Offering) is when a private company goes public by selling shares to the public. Investors buy these shares, giving them ownership in the company. It's a way for companies to raise capital and expand. The process involves underwriters, regulatory filings, setting the IPO price, and marketing to investors. After the IPO, shares can be traded on a stock exchange. IPOs offer opportunities and risks, so investors should research and consider carefully.
"Upcoming IPOs" refers to initial public offerings that have been announced by private companies but have not yet occurred. These are companies that plan to go public in the near future by issuing shares to the public and listing them on a stock exchange. Investors often keep an eye on upcoming IPOs as they represent opportunities to invest in companies at their early stages of public trading, potentially capturing growth potential. These offerings are typically accompanied by significant media and investor attention as they approach their launch dates.