- Price band set at ₹152-160 per share
- Bid Offer will close on Wednesday, August 14, 2024.
- Bids can be made for a minimum of 90 Equity Shares and in multiples of 90 Equity Shares thereafter.
NE BUSINESS BUREAU
AHMEDABAD, AUGUST 10
Maharashtra-based Saraswati Saree Depot Limited on Thursday announced its initial public offering (IPO) will open for subscription on Monday, August 12, 2024, and will close on Wednesday, August 14, 2024. . The company plans to raise ₹160 crore through this initial public offering, comprising a fresh issue of 0.65 crore shares worth ₹104 crore and an offer for sale of 0.35 crore shares valued at ₹56.02 crore.
The price band has been set at ₹152-160 per share. The face value of each equity share is ₹10. Bids can be made for a minimum of 90 Equity Shares and in multiples of 90 Equity Shares thereafter. At the upper price band of ₹160, the minimum investment required for retail investors would be ₹14,400.
The Company proposes to utilize the net proceeds from fresh Issue towards funding Working capital requirements of the Company estimated ₹81 Crore to be deployed in FY 2025; and balance amount towards General corporate purposes.
The allocation of the net issue is structured with 50% reserved for qualified institutional buyers, 15% for non-institutional investors, and a minimum of 35% for retail investors, all on a proportionate basis.
The company is a key player in the saree wholesale (B2B) segment, and its origin in the saree business dates back to the year 1966. It is also engaged in the wholesale business of other women’s apparel, such as kurtis, dress materials, blouse pieces, lehengas, bottoms, etc.
90% of its total revenues are generated from the sale of sarees. In fiscal 2023, the company served over 15,000 unique customers. Its product catalog consists of more than 3,00,000 different SKUs, its DRHP showed.
The Indian saree market has traditionally been dominated by small, unorganised retail shops with a loyal customer base, often stocking sarees based on local demand. However, with the rising aspirations of the middle class and increasing disposable incomes, organised players are entering the market, particularly targeting the mid- to premium segments.
“We intend to enter the men’s ethnicwear space, due to the rising trend of multi-day weddings, wider acceptance of traditional outfits during festival celebrations and emergence of brands in the Indian wedding and celebration wear market. This segment is highly unorganised at the moment,” said Nikhil Dulhani, head-investors relations of Saraswati Saree depot Ltd.
“We intend to make investments in digital channels to build an omni-channel engagement experience for our customers, B2B and B2C, and have a dedicated team for our e-commerce operations. We anticipate such investments will increase our profitability and revenue from operations and diversify our revenue generating channels,” Dulhani ad.ded
The company sources sarees from different manufacturers across India. Over the years, it has developed relationships with these manufacturers in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.
During the financial year 2024, Saraswati Saree depot Ltd earned a revenue of ₹610 crore and a net profit of ₹29.5 crore. In the previous year (2022-23), the revenues stood at ₹601 crore and profit after tax was at ₹22.9 crore.
Unistone Capital Private Limited is the Book Running Lead Manager to the Offer, , while Bigshare Services is the registrar for the issue. The equity shares are expected to be listed on the BSE and NSE.
