The forthcoming Initial Public Offering (IPO) of Saraswati Saree Depot Limited marks a significant milestone
Saraswati Saree Depot Limited has published that its IPO is going to be floated on the 12 of August 2024 and the period will end on 14 of August 2024. The company is involved in the manufacturing and wholesale of women’s clothing, with its core business in the B2B segment of saree in India. It aims to gather INR 160.01 crore through an IPO with an equity share of 1,08,00,000 shares, compromising a fresh issue of approximately INR 104.00 crore (64,99,800 equity shares) and an offer for sale up to approx. INR 56.02 crore (35,01,000 equity shares) with equity shares of INR 10 each.
Company Overview
Saraswati Saree Depot Limited was established in 1996 and deals in the business of ready-made garments for women, separately in manufacturing and wholesale. Its primary business segment is business-to-business (B2B), specializing in sarees and selling other women’s clothing. The company procures products from more than 900 weavers and suppliers across the other states in India.
Company Strategy
The company strategy aimed to cater to a wider customer segment, including individual entrepreneurs and big retailers in urban markets. With the generational experience that has been transferred through three generations, the company has highly qualified personnel who can maintain the highest levels of quality and customer service. It has been involved in building a strong national network for the effective demonstration of the wide range of ethnic garments and to support the company’s desire for growth and to gain a competitive advantage in the Indian garment market.
Details on IPO Date and Price Band
| IPO Open: | August 12, 2024 |
| IPO Close: | August 14, 2024 |
| IPO Size: | Approx INR 160.01 Crores (10,800,000 Equity Share) |
| Fresh Issue: | Approx INR 104.00 Crore (64,99,800 Equity Share) |
| Offer for Sale: | Approx INR 56.02 Crores (35,01,000 Equity Share) |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹152 to ₹160 Per Share |
| IPO Listing on: | BSE & NSE |
| Retail Quota: | 35% |
| QIB Quota: | 50% |
| NII Quota: | 15% |
| Discount: | N/A |
IPO Objective:
The primary purposes for the Initial Public Offering of Saraswati Saree Depot Limited are to meet working capital requirements, working capital requirements, and other general corporate requirements. These funds will assist in achieving key objectives such as an enhanced supply chain and a comprehensive product portfolio, as well as greater general efficiency in its operations. Also, the funds will help to enhance the market position, establishment of various brands, and advance other growth strategies that enable the company to adapt to the changing needs of clients by continuing to offer the best quality of products at relatively cheaper prices and dominate the wholesale market.
Market Lot Information on Saraswati Saree Depot Limited IPO
The lot size and corresponding amounts are as follows:
- Retail Minimum: 1 lot (90 shares) for INR 14,400
- Retail Maximum: 13 lots (1,170 shares) for INR 1,87,200
- S-HNI Minimum: 14 lots (1,260 shares) for INR 2,01,600
- B-HNI Minimum: 70 lots (6,300 shares) for INR 10,08,000
Allotment Dates for Saraswati Saree Depot Limited IPO
Saraswati Saree Depot Limited IPO open date is August 12 and the IPO close date is August 14. The IPO allotment date is August 16 and the IPO might list on August 20.
| IPO Open Date: | August 12, 2024 |
| IPO Close Date: | August 14, 2024 |
| Basis of Allotment: | August 16, 2024 |
| Refunds: | August 19, 2024 |
| Credit to Demat Account: | August 19, 2024 |
| IPO Listing Date: | August 20, 2024 |
Application Process of IPO
The IPO can be accessed by submitting an application through the online ASBA (Application Supported by Blocked Amount) facility from the bank through ‘Internet banking’, going to ‘Invest’, and applying for the Saraswati Saree Depot Limited. On the other hand, the IPO forms are also available for download on the NSE and BSE websites which the candidates can fill and submit.
Financial Analysis of Company
| Year | Revenue (Crore) | EBITDA (Crore) | PAT (Crore) |
| 2022 | INR 550.31 | INR 20.85 | INR 12.31 |
| 2023 | INR 603.52 | INR 34.05 | INR 22.97 |
| 2024 | INR 612.58 | INR 41.14 | INR 29.53 |
The financial performance of the company has been quite impressive over the past three fiscal years. Revenue increased from INR 550.31 crore in 2022 to INR 612.58 crore in 2024, which clearly depicts sound market growth. EBITDA rose steadily from INR 20.85 crore to INR 41.14 crore, indicating increased operational efficiency over the past few years. PAT increased from INR 12.31 crore to INR 29.53 crore, which shows that the company has high profitability and good prospects for the future, which attracts investors.
IPO Valuation (FY 2023)
The company’s EPS stands at a value of INR 6.94 with Return on Net Worth (RoNW) of 64.93% and a NAV per share of INR 10.69 in the financial year 2023. The IPO price band ranges between INR 152 and INR 160 per share to raise 160.01 crores, consisting of a fresh issue of approx. INR 104.00 crore (64,99,800 equity share) and an offer for sale up to approx. INR 56.02 crore (35,01,000 equity share) for optimizing its supply chain, expanding product offerings, and improving operational efficiency.
| Earnings Per Share (EPS): | ₹6.94 per Equity Share |
| Price/Earning P/E Ratio: | N/A |
| Return on Net Worth (RoNW): | 64.93% |
| Net Asset Value (NAV): | ₹10.69 per Equity Share |
Competitor Analysis
Go Fashion (India) Ltd
Go Fashion (India) Ltd. is an Indian apparel retail chain with a specific focus on women’s wear. Established in 1999, Go Fashion is a clothing store chain across the country with an exclusive range of trendy and stylish clothing lines under “Go Colors.” It is well known for its kurtis, leggings, and various accessories for today’s glamorous Indian women. The company aims to offer better retail space utilization, uniqueness of designs and a customer-oriented strategy, which contribute to making the company one of the key movers in the Indian fashion industry and its progress as well as expansion.
Sai Silks (Kala mandir) Limited
Sai Silks (Kala Mandir) Limited is a leading Indian retailer operating in India that mainly deals with traditional as well as modern silk sarees and women’s apparel. Started in 1980, the company deals in a wide variety of quality sarees such as silk, cotton and synthetic at its numerous outlets across the country. Sai Silks (Kala Mandir) continue the traditional weaving skills but at the same time reflect current fashion trends in order to suit customers’ diverse needs. Thus, the company has become a major textile and apparel company in India through its commitment to quality and customer satisfaction.
Promoters And Management
- Mr. Shankar Dulhani
- Mr. Mahesh Dulhani
- Mr. Rajesh Dulhani
- Mr. Vinod Dulhani
In conclusion, the Saraswati Saree Depot Limited IPO presents a promising opportunity for investors to engage with a company that is set to play a significant role in the future of India’s apparel industry. With a clear strategic direction, solid financial grounding, and a proven track record of growth, Saraswati Saree Depot is poised to continue its journey as a leader in the traditional Indian clothing market, creating value for its customers and shareholders alike. As the IPO date approaches, the market awaits with anticipation to see the impact of this significant corporate event on the broader landscape of the Indian textile industry.
