The Saraswati Saree Depot IPO has officially opened for public subscription, hitting the Indian primary market today. This IPO, launched by Saraswati Saree Depot Limited, will remain open until August 14, 2024, providing investors a limited window to participate in the offering. Priced between ₹152 and ₹160 per equity share, the IPO aims to raise ₹160.01 crore, with ₹104 crore coming from fresh shares.
Before the IPO’s opening, shares of Saraswati Saree Depot were available in the grey market, with a reported grey market premium (GMP) of ₹34, indicating positive investor interest. The company is set to list on both the BSE and NSE, with a likely listing date of August 20, 2024.
Key Details of Saraswati Saree Depot IPO
- Saraswati Saree Depot IPO GMP: The current grey market premium for Saraswati Saree Depot shares is ₹34, reflecting strong demand among investors.
- IPO Price Band: The price band for the Saraswati Saree Depot IPO has been set at ₹152 to ₹160 per equity share.
- IPO Subscription Dates: The IPO opened on August 12, 2024, and will close on August 14, 2024.
- IPO Size: Saraswati Saree Depot aims to raise ₹160.01 crore, with ₹104 crore from fresh issues and ₹56.01 crore reserved for the offer for sale (OFS).
- Lot Size: Investors can apply in lots, with one lot comprising 90 shares.
- Allotment Date: The allotment of shares is expected on August 16, 2024.
- Registrar: Bigshare Services Private Limited is the official registrar for the IPO.
- Listing Date: The shares are likely to list on August 20, 2024, under the T+3 listing rule.
- Lead Manager: Unistone Capital Private Limited has been appointed as the lead manager for the IPO.
Should You Apply for the Saraswati Saree Depot IPO?
The Saraswati Saree Depot IPO has garnered positive reviews from market experts. Akriti Mehrotra, a Research Analyst at StoxBox, has given a ‘subscribe’ rating to the IPO, highlighting the company’s well-established B2B saree wholesale business and its diversification into other apparel categories like kurtis and men’s ethnic wear. The company has shown strong revenue and profitability growth, making the IPO attractively priced with a P/E ratio of 17.9x based on FY24 earnings.
Similarly, Ventura Securities has also recommended a ‘subscribe’ for the Saraswati Saree Depot IPO, noting the company’s consistent financial growth. From FY21 to FY24, Saraswati Saree Depot has shown a significant increase in total sales and PAT, reflecting a healthy CAGR of 20.34%. The capital raised from the IPO will be used to fund working capital requirements and general corporate purposes, positioning the company for further market expansion.
In conclusion, the Saraswati Saree Depot IPO offers a promising investment opportunity, especially for investors with a medium to long-term perspective. With positive GMP and favorable expert reviews, it could be a good buy today.
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