Saraswati Saree Depot Ltd has fixed a price band of Rs 152-160 per share for its initial public offering that is scheduled to open for subscription on August 12. It will close on August 14 and the basis of allotment would be finalized on August 16. Refunds are expected to be initiated on August 19 and the stock is slated to be listed on the exchanges on August 20.
The IPO includes a fresh issue of up to 6.50 million shares and an offer for sale of up to 3.51 million shares by existing shareholders and promoters. At the upper price band, the fresh issue is valued at Rs 104 crore, and for sale comes at Rs 56 crore, thereby taking total market capitalization to Rs 320 crore.
Proceeds from the fresh issue of Rs 81 crore would be used to fund working capital requirements. Unistone Capital is the book-running lead manager for the public issue.
Saraswati Saree Depot, a renowned wholesaler in the B2B sarees segment since 1966, is also engaged in the wholesale business for kurtis, dress materials, blouse pieces, lehengas, and bottoms. More than 90 percent of its sales come from sarees alone. During FY24, the company served more than 13,000 unique customers and had an Industra-catalog with more than 300,000 SKUs.
On consolidated grounds, Saraswati Saree Depot posted revenues of Rs 610.90 crore for FY24, as against Rs 601.89 crore in the previous year. Its net profit for the fiscal stood at Rs 29.53 crore as compared to Rs 22.97 crore last year.
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Source: Moneycontrol
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