The IPO for Saraswati Saree Depot is scheduled to begin on August 12, 2024, and end on August 14, 2024. The exact date of the IPO is not yet set. With the new issue of ₹56.02 crores and the offering for sale of up to 6,499,800 equity shares at a price of ₹10 apiece, Saraswati Saree Depot aims to raise approximately ₹160.01 crores through its first public offering (IPO). 35% of the retail quota, 50% of QIB, and 15% of HNI are all allocated.
Saraswati Saree Depot IPO Details
| Open Date | August 12, 2024 |
| Close Date: | August 14, 2024 |
| IPO Size: | Approx ₹160.01 Crores, 10,800,000 Equity Share |
| Fresh Issue: | Approx ₹104.00 Crores, 6,499,800 Equity Share |
| Offer for Sale: | Approx ₹56.02 Crores, 3,501,000 Equity Share |
| Face Value: | ₹10 Per Equity Share |
| IPO Price Band: | ₹152 to ₹160 Per Share |
| IPO Listing on | BSE & NSE |
| Article Category | IPO |
| IPO Listing Date: | August 20, 2024 |
Saraswati Saree Depot Financials
- Return on Equity (ROE) – 96.15%
- Return on Capital Employed (ROCE) – 98.03%
- Debt to Equity Ratio (D/E) – 1.17
- Return on Net Worth (RoNW) – 64.93%
- Price to Book Value (P/BV) – 14.97
About Saraswati Saree Depot
Saraswati Saree Depot Limited was established in 1996 and has since become a well-known manufacturer and wholesaler in the women’s clothing industry, specializing in the business-to-business (B2B) saree market. The company was founded in 1966 and has a long history in the saree industry, as evidenced by its consistent success and substantial market share.
The main business of Saraswati Saree Depot is the wholesale distribution of sarees, which accounts for more than 90% of the company’s overall revenue. In addition to sarees, the company engages in the wholesale trade of numerous other women’s clothing items, such as bottoms, blouse pieces, lehengas, kurtis, and dress materials. They have been able to meet a broad range of customer needs and market preferences thanks to their extensive product selection.
Conclusion
Positively, the business has demonstrated strong financial success; for the fiscal year that ends on March 31, 2023, revenues exceeded ₹600 crores, and profits after taxes totaled ₹22.97 crores. Strong profitability and effective use of capital are indicated by the high return on equity (ROE) of 96.15% and return on capital employed (ROCE) of 98.03%.
Furthermore, it is anticipated that the Indian ethnic wear industry will rise consistently, which could be advantageous to the company as it grows. Potential investors should, however, also take the hazards into account. Due to the competitive nature of the ethnic wear market, any supply chain interruptions may have an effect on the profit margins of the business. Furthermore, even though the financial indicators are good, sustainability may be questioned given the decline in ROCE from the prior year.
