Saraswati Saree Depot IPO Price: ₹152 to ₹160 per share
IPO Dates: 12 August 2024 – 14 August 2024
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%.
E-Commerce and Digital Strategy
Saraswati Saree Depot is focusing on strengthening its sales through e-commerce channels to align with evolving customer trends. The company invests in digital platforms to create an omnichannel engagement experience for B2B and B2C customers. A dedicated team is already in place to drive the company’s e-commerce operations, ensuring it stays ahead of the curve in the digital marketplace.
Competitive Strengths
Saraswati Saree Depot’s competitive advantages include a diversified supplier and customer base, a broad product portfolio, bulk buying capabilities, and an experienced management team. The company has cultivated strong relationships with clients and suppliers, supported by a collaborative and skilled workforce. Additionally, Saraswati Saree Depot has secured 7 registered trademarks and has 3 more applications pending under the Trademarks Act 1999, further strengthening its brand identity.
Bidding Starts In
Saraswati Saree Depot IPO Specifics:
| IPO Date | August 12, 2024 to August 14, 2024 |
| Listing Date | Tuesday, August 20, 2024 |
| Face Value | ₹10 per share |
| Price Band | ₹152 to ₹160 per share |
| Lot Size | 90 Shares |
| Total Issue Size | 10,000,800 shares (aggregating up to ₹160.01 Cr) |
| Fresh Issue | 6,499,800 shares (aggregating up to ₹104.00 Cr) |
| Offer For Sale | 3,501,000 shares (aggregating up to ₹56.02 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| Share holding pre issue | 33,100,000 |
| Share holding post issue | 39,599,800 |
Saraswati Saree Depot IPO Timetable (Important Dates)
| IPO Open Date | Monday, August 12, 2024 |
| IPO Close Date | Wednesday, August 14, 2024 |
| Basis of Allotment | Friday, August 16, 2024 |
| Initiation of Refunds | Monday, August 19, 2024 |
| Credit of Shares to Demat | Monday, August 19, 2024 |
| Listing Date | Tuesday, August 20, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on August 14, 2024 |
Saraswati Saree Depot IPO Lot Size
Bidders have the opportunity to bid for a minimum of 90 shares, with the option to increase in multiples. The table below outlines the minimum and maximum investment thresholds for both retail investors and High Net Worth Individuals (HNIs), specifying the corresponding number of shares and amounts involved.
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 90 | ₹14,400 |
| Retail (Max) | 13 | 1,170 | ₹1,87,200 |
| S-HNI (Min) | 14 | 1,260 | ₹2,01,600 |
| S-HNI (Max) | 69 | 6,210 | ₹9,93,600 |
| B-HNI (Min) | 70 | 6,300 | ₹10,08,000 |
Saraswati Saree Depot IPO Reservation
| QIB Shares Offered | Not more than 50% of the Net offer |
| Retail Shares Offered | Not less than 35% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
Saraswati Saree Depot Limited IPO Financial Information
Between the conclusion of the fiscal years on March 31, 2024, and March 31, 2023, Saraswati Saree Depot Limited observed a 2% growth in its revenue and a significant 29% rise in its profit after tax (PAT) earnings
| Period Ended | 31 Mar 2022 | 31 Mar 2023 | 31 Mar 2024 |
|---|---|---|---|
| Assets | 169.93 | 188.85 | 205.94 |
| Revenue | 550.31 | 603.52 | 612.58 |
| Profit After Tax | 12.31 | 22.97 | 29.53 |
| Net Worth | 12.41 | 35.38 | 64.91 |
| Total Borrowing | 66.62 | 41.43 | 43.49 |
Key Performance Indicator – Saraswati Saree Depot IPO
| KPI | Values |
|---|---|
| Market Cap | ₹ 633.6 Cr |
| ROE | 58.88% |
| ROCE | 64.46% |
| EPS | ₹6.94 |
| P/E (x) | 23.05 |
| Debt/ Equity | 0.67 |
| RoNW | 45.49% |
| P/BV | 14.97 |
Objects of the Issue:
The company plans to use the net proceeds from the issue for the following purposes:
- To support general corporate purposes.
- To fund the company’s working capital requirements.
Prospectus Links:
Prospectus: Official documents that provide detailed information about the IPO and the company.
