Saraswati Saree Depot IPO: Subscription Status, GMP, and Key Details
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Saraswati Saree Depot IPO
Saraswati Saree Depot IPO: Subscription Status, GMP, and Key Details
IPO Details:
The Saraswati Saree Depot IPO has had a strong start, with the retail and non-institutional investor portions fully subscribed. The IPO, which opened on August 12, 2024, and will close on August 14, 2024, has generated considerable interest, with the subscription status currently at 1.21 times as of 12:21 IST. The price band for the IPO is set between ₹152 and ₹160 per equity share.
Key Dates:
- IPO Open Date: Monday, August 12, 2024
- IPO Close Date: Wednesday, August 14, 2024
- Basis of Allotment: Friday, August 16, 2024
- Initiation of Refunds: Monday, August 19, 2024
- Credit of Shares to Demat: Monday, August 19, 2024
- Listing Date: Tuesday, August 20, 2024
- Cut-off Time for UPI Mandate Confirmation: 5 PM on August 14, 2024
Subscription Status:
- Overall Subscription: 1.21 times
- Retail Portion: Subscribed 2.28 times
- Non-Institutional Investors (NII) Portion: Subscribed 2.72 times
- Qualified Institutional Buyers (QIB) Portion: Yet to be booked
IPO Details:
- Price Band: ₹152 to ₹160 per equity share
- Shares on Offer: 1,00,00,800 shares
- Retail Investor Bids: Up to 90 shares, or multiples thereof
- Shareholding: 50% reserved for QIB, 15% for NII, and 35% for retail investors
Company Overview: Saraswati Saree Depot, established in 1966 and headquartered in Kolhapur, Maharashtra, specializes in the saree industry and has expanded its offerings to include various women’s clothing items. The company sources sarees from different parts of India and has a significant presence in cities like Surat, Varanasi, and Bengaluru.
Financial Metrics:
- Price to Earnings (P/E) Ratio:
- Floor Price: 17.04 times
- Cap Price: 17.94 times
- Industry Average P/E Ratio: 46.57 times
- Peer Comparisons:
- Go Fashion (India) Ltd: P/E of 71.80 times
- Sai Silks (Kalamandir) Ltd: P/E of 21.34 times
- Profit After Tax (PAT) Growth (March 2023 to March 2024): 29%
- Revenue Growth (March 2023 to March 2024): 2%
IPO Structure:
- Offer for Sale (OFS): 35 lakh equity shares by promoters
- New Issue: Up to 65 lakh equity shares
- Total IPO Size: ₹160 crore (upper end of the price range)
- Use of Proceeds: Working capital needs and other corporate objectives
- Issue Registrar: Bigshare Services
- Book Running Lead Manager: Unistone Capital
Promoter Shareholding:
- Tejas Dulhani: 700,200 shares
- Amar Dulhani: 700,200 shares
- Shevakram Dulhani: 700,200 shares
- Sujandas Dulhani: 700,200 shares
- Tushar Dulhani: 350,100 shares
- Nikhil Dulhani: 350,100 shares
Grey Market Premium (GMP):
- Current GMP: ₹60
- Estimated Listing Price: ₹220 (37.5% higher than the upper end of the IPO price band of ₹160)
- GMP Range (Past Five Sessions): ₹20 to ₹60
Advantages:
- Strong Subscription: The IPO has seen full subscription in the retail and NII portions, indicating robust investor interest.
- Attractive Pricing: The P/E ratio is significantly lower than the industry average, suggesting the IPO is attractively priced.
- High GMP: A high GMP indicates strong market confidence and a potential for substantial listing gains.
- Established Company: With a long history and significant market presence, the company has a solid foundation and extensive distribution network.
Disadvantages:
- Limited QIB Subscription: The QIB portion is yet to be booked, which could impact overall demand and pricing stability.
- Potential for Price Volatility: Despite high GMP, there could be price fluctuations post-listing, especially if market conditions change.
- Subdued Revenue Growth: While PAT growth is strong, revenue growth has been modest at 2%, which might raise concerns about future scalability.
Conclusion: The Saraswati Saree Depot IPO has garnered positive interest with full subscription in retail and NII portions, indicating strong market demand. The attractive pricing and high GMP further support a positive outlook for the listing. However, potential investors should be mindful of the current QIB subscription status and the company’s modest revenue growth. Overall, the IPO appears to be a promising investment opportunity with substantial potential for listing gains.
FAQs
Q1: When does the Saraswati Saree Depot IPO open and close? A1: The IPO opened on August 12, 2024, and will close on August 14, 2024.
Q2: What is the price band for the Saraswati Saree Depot IPO? A2: The price band for the IPO is set between ₹152 and ₹160 per equity share.
Q3: What is the Grey Market Premium (GMP) for the IPO? A3: The current GMP for the Saraswati Saree Depot IPO is ₹60, indicating a strong premium over the issue price.
Q4: What are the key financial metrics for Saraswati Saree Depot? A4: The P/E ratio ranges from 17.04 to 17.94 times, compared to the industry average of 46.57 times. The company has shown a 29% growth in PAT and a 2% increase in revenue from March 2023 to March 2024.
Q5: What is the listing date for Saraswati Saree Depot shares? A5: The listing date for Saraswati Saree Depot shares is August 20, 2024.
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