Saraswati Saree Depot IPO Listing: Saraswati Saree opened its IPO to investors for subscribing on August 12 and stopped taking bids on August 14. The company is a leading company in the wholesale saree market (B2B) as noted by the CRISIL Report. The company’s involvement in the saree industry began in 1966. Since its incorporation, the company has continued to operate with the same core values and management team. In addition to sarees, Saraswati Saree Depot also wholesales a variety of women’s apparel, including kurtis, dress materials, blouse pieces, lehengas, and bottoms.
1. Key Risks
The business of Saraswati Saree Depot is heavily focused on women’s sarees, making it susceptible to demand fluctuations. Also, a significant portion of sales comes from the western zone of India, so any negative developments there could impact its business. The company operate in a highly competitive and fragmented industry dominated by numerous unorganized players. It’s a very highly working capital-intensive business.
2. GMP
The stocks of the company were attracting a premium of Rs 29% in the grey market. It is an unofficial place where shares trade illegally ahead of listing.
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3. Allotment
The shares of Saraswati Saree Depot were allotted on August 16 and were credited to the D’mat accounts on August 19.
4. Issue Size
The company raised a sum of Rs 160.01 crore from the investors through a combination of Rs fresh shares and an offer for sale.
5. Price Band
The price band for the issue was set in a range of Rs 152 to Rs 160 per equity share.
6. Minimum Investment Requirement
A retail buyer had to apply for at least one lot of 90 shares, which amounts to Rs 14,400. The small and big NIIs had different minimum investment criteria.
7. BRLM and Registrar
Unistone Capital is the book-running lead manager of the IPO while Bigshare Services registrar of the issue.