Saraswati Saree IPO Closes With Subscription Worth Over Rs 17,00 Cr

The initial public offering (IPO) of Saraswati Saree Depot closed on 14 August after receiving a massive response for its Rs 160 crore issue.

The allotment for the issue is scheduled on 16 August followed by its listing on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on 20 August.  

The Rs 160 crore IPO consisted of a fresh issue worth Rs 104 and an offer-for-sale (OFS) component of Rs 56 crore with the price band fixed at Rs 152 to 160 per equity share.

During its subscription phase, the issue received bids worth Rs 17,183 crore as the total subscription stood 107.39 times. Retail category and qualified institutions subscribed the issue 61.59 times and 64.12 times respectively. 

Unistone Capital is the book running lead manager and Bigshare Services is the registrar to the offer. 

IPO Objectives

The company will not receive any proceeds from the OFS portion. From the fresh issue net proceeds, the company will utilise Rs 81 crore for funding working capital requirements of its company. Residual proceeds will be used for general corporate purposes.

Additionally, the firm will also get benefits on listing in the public market which will enhance the brand’s visibility and provide liquidity to the shareholders. 

Firm’s Financials

The firm registered revenue of Rs 612 crore in FY24, compared to Rs 603 crore in FY23. 

The firm’s profit after tax (PAT) increased to Rs 29.53 crore in FY24 compared to Rs 22.97 crore in FY23. 

Overall, revenue increased by 2 per cent, whereas PAT climbed nearly 30 per cent.