Saraswati Saree Depot Limited is coming up with an IPO worth INR 160.01 crores, consisting of a fresh issue of 64,99,800 shares worth INR 104 crores and an offer to sell 35,01,000 shares worth INR 56.02 crores. The company aims to fund working capital requirements and meet general corporate purposes.
Saraswati Saree Depot IPO – Important Dates
| Saraswati Saree Depot Limited IPO Date | August 12, 2024 to August 14, 2024 |
| Saraswati Saree Depot Limited IPO Listing Date | August 20, 2024 |
| Saraswati Saree Depot Limited IPO Price | INR 152-160 per share |
| Saraswati Saree Depot Limited IPO Lot Size | 90 Shares |
| Saraswati Saree Depot Limited IPO Total Issue Size | INR 160.01 crores |
| Saraswati Saree Depot Limited IPO Basis of Allotment | August 16, 2024 |
| Saraswati Saree Depot Limited IPO Initiation of Refunds | August 19, 2024 |
| Saraswati Saree Depot Limited IPO Credit of Shares to Demat | August 19, 2024 |
| Saraswati Saree Depot Limited IPO Issue Type | Book Built Issue IPO |
| Saraswati Saree Depot Limited IPO Listing At | BSE, NSE |
Saraswati Saree Depot Limited IPO – Company Profile
Saraswati Saree Depot Limited, established in 1966, is a leading wholesaler of sarees. It also offers kurtis, dress materials, and lehengas. Over 90% of its revenue comes from sarees, and in FY 2024, it served 13,000+ customers.
Incorporated in 2021, Saraswati Saree Depot Private Limited continues the Dulhani family’s legacy, achieving over ₹6,000 million in sales and serving 13,000+ customers in FY 2024 while upholding core values and expanding product offerings.
Sourcing from over 900 weavers/suppliers across major Indian hubs like Surat, Varanasi, and Kolkata, the saree product catalog includes more than 300,000 SKUs, reflecting solid relationships developed over the years with manufacturers nationwide.
Saraswati Saree Depot Ltd IPO Fundamental Analysis
Saraswati Saree Depot Limited’s financial analysis reveals a mixed performance. Revenue increased steadily from March 2022 to March 2024, with rising profitability and EPS, while reduced RoNW and improved liquidity reflect financial stability and growth.
- Revenue Trend: The revenue increased from ₹5,495.76 million in March 2022 to ₹6,018.91 million in March 2023. The revenue for the current year’s 12-month period ending March 2024 is INR 6,109.04 million.
- Equity and Liabilities: Equity has shown a consistent increase over the periods, reflecting potential growth and expansion. However, the debt-equity ratio has decreased, indicating reduced reliance on debt financing.
- Profitability: The profit after tax (PAT) has increased from ₹123.08 million in March 2022 to ₹295.28 million by March 2024. The rise in profitability could be a source of confidence for investors.
- Earnings per Share (EPS): The diluted EPS has also increased from ₹3.72 in March 2022 to ₹8.92 by March 2024, reflecting higher earnings per share for investors.
- Return on Net Worth (RoNW): The RoNW has reduced from 99.20% to 45.49%, indicating a decrease in the company’s ability to generate returns on shareholder equity.
- Financial Position: Total assets have increased, suggesting potential business growth. However, the current ratio has increased, indicating strengthening liquidity and potential challenges in meeting short-term obligations.
Saraswati Saree Depot IPO Financial Analysis
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 31 March 2024 |
| Revenue (₹ in Million) | 5,495.76 | 6,018.91 | 6,109.04 |
| Equity (₹ in Million) | 124.08 | 353.82 | 649.09 |
| Expenses (₹ in Million) | 5,338.19 | 5,726.46 | 5,739.26 |
| Profit and Loss After Tax (₹ in Million) | 123.08 | 229.74 | 295.28 |
| RoNW (%) | 99.20 | 64.93 | 45.49 |
| NAV per Equity Share (₹) | 3.75 | 10.69 | 19.61 |
| Diluted EPS only (₹) | 3.72 | 6.94 | 8.92 |
| Total Assets (in millions) | 1,699.31 | 1,888.53 | 2,059.37 |
| Total Liabilities (in millions) | 1,575.23 | 1,534.71 | 1,410.28 |
| Debt Equity Ratio | 5.37 | 1.17 | 0.67 |
| Current Ratio (in time) | 1.06 | 1.19 | 1.41 |
Saraswati Saree Depot Limited IPO Peer Comparison
Saraswati Saree Depot Limited shows moderate revenue and strong EPS compared to peers Go Fashion and Sai Silks. However, its return on net worth is higher, indicating a better ability to generate shareholder returns.
| Company | Revenue from Operations (₹ in million) | Face Value per Equity Share (₹) | P/E | EPS (Basic) (₹) | EPS (Diluted) (₹) | RoNW (%) | NAV per Equity Share (Basic) (₹) |
| Saraswati Saree Depot Limited | 6,109.04 | 10 | – | 8.92 | 8.92 | 45.49 | 19.61 |
| Go Fashion (India) Ltd | 7,628.28 | 10 | 71.80 | 15.32 | 15.32 | 13.71 | 111.81 |
| Sai Silks (Kalamandir) Limited | 13,735.50 | 10 | 21.34 | 7.51 | 7.51 | 9.49 | 72.14 |
Saraswati Saree Depot Ltd IPO Objective
The main objective of Saraswati Saree Depot Limited is to meet working capital requirements.
- Funding the company’s working capital requirements: The company intends to utilize INR 81 crores to fund working capital requirements, supporting business growth, strategic initiatives, and increased profitability, supplementing internal accruals and financing facilities for future expansion.
- General corporate purposes: The company plans to use the net proceeds for general corporate purposes, including business development initiatives, covering salaries, rent, administration costs, taxes, duties, and other expenses incurred in the ordinary course or for urgent needs.
Saraswati Saree Depot IPO Risks And Challenges
Saraswati Saree Depot Limited’s risks include adapting to changing customer preferences, vulnerability to local disruptions in Maharashtra, and challenges in brand visibility and consumer loyalty due to its exclusive focus on wholesale women’s apparel.
- Women’s traditional wear sales depend on competition and changing customer preferences. Failure to adapt could result in obsolete inventory, pricing pressure, reduced sales, and a negative impact on financial performance and growth prospects.
- Operating solely in Maharashtra with stores in Kolhapur and Ulhasnagar, the business is vulnerable to local disruptions, such as natural disasters, political instability, and pandemics, which can significantly impact operations, revenue, and financial performance.
- Exclusive to the wholesale segment of women’s apparel, the company faces brand visibility and consumer loyalty challenges. The lack of a retail presence limits market recognition, consumer engagement, and responsiveness to market trends.
Saraswati Saree Depot Ltd IPO – Industry & Market Potential
The Indian apparel market experienced a 3-4% CAGR from FY2019 to FY2024 and saw a robust 9% growth in FY2024. The market is set to grow at 10-11% CAGR by FY2029, driven by improving conditions and increased disposable income.
In FY2024, India’s textile exports, including readymade garments, ethnic wear, and knitwear, have shown resilience. Despite previous challenges, the sector recovered robustly in FY2022, reflecting its strong position in global markets.
The saree market in India is expected to grow at a 5-6% CAGR from FY2024 to FY2029, reaching ₹650-675 billion. This growth is driven by rising demand for premium products and the entry of organized brands.
Saraswati Saree Depot Limited IPO – Type of Offer
Saraswati Saree Depot Limited plans a fresh issue of shares, seeking INR 104 crores to fund working capital requirements and general corporate needs. Additionally, the company proposes an offer for sale, intending to sell 0.35 crore existing shares.
- Fresh Issue: The company will issue new shares to raise capital, aiming to collect INR 104 crores. The company intends to utilize the proceeds from the fresh issue for funding working capital requirements and general corporate purposes.
- Offer for sale: Saraswati Saree Depot Limited is offering to sell 0.35 crore existing shares. The following are the details of the existing shareholders who are also the promoters selling the shares:
| Name of the promoter selling shareholder | Maximum number of offered shares for sale (in millions) |
| Tejas Dulhani | 700,200 |
| Amar Dulhani | 700,200 |
| Shevakram Dulhani | 700,200 |
| Sujandas Dulhani | 700,200 |
| Tushar Dulhani | 350,100 |
| Nikhil Dulhani | 350,100 |
Saraswati Saree Depot IPO Offer Size
The offer size of Saraswati Saree Depot Limited is INR 160.01 crores, consisting of a fresh issue of 64,99,800 shares worth INR 104 crores and an offer to sell 35,01,000 shares worth INR 56.02 crores. The company seeks funds for working capital requirements and general corporate needs.
Saraswati Saree Depot Limited IPO Allotment Structure
Saraswati Saree Depot allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) in accordance with SEBI regulations.
● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.
● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.
● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs.
How to apply for the Saraswati Saree Depot IPO?
To apply for the Saraswati Saree Depot Limited IPO through Alice Blue, follow these steps:
Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.
- Check for IPO Details: Once your account is active, you can check for the Saraswati Saree Depot Limited IPO details in the IPO section of the Alice Blue platform.
- Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
- Submit the Application: Confirm all your details and submit your application.
You can apply for the Saraswati Saree Depot Limited IPO at Alice Blue in just a few clicks!
Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.
Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.
How do you check Saraswati Saree Depot IPO Allotment Status?
Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:
- Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
- Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
- Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
- Select the Saraswati Saree Depot Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Saraswati Saree Depot Limited IPO.
- Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.
If you face any issues, we request you to reach out to our customer support team at Alice Blue for detailed assistance.
Apart from Alice Blue, there are other ways to check the allotment status of the Saraswati Saree Depot Limited IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the Saraswati Saree Depot Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.
● BSE NSE: You can also check the allotment status on the official websites of the Bombay Stock Exchange (BSE) National Stock Exchange (NSE). You would need your application number and PAN to check the status.
Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.
Saraswati Saree Depot Ltd IPO Offer Registrar
The registrar for the Saraswati Saree Depot Limited IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre,
Mahakali Caves Road, Andheri (East),
Mumbai –400 093, Maharashtra, India.
Telephone: +91 22-62638200;
Email: [email protected];
Website: www.bigshareonline.com
Saraswati Saree Depot IPO – FAQs
1. What is the allotment date of the Saraswati Saree Depot IPO?
The allotment date of the Saraswati Saree Depot Limited is August 16, 2024.
2. What is the price band of the Saraswati Saree Depot IPO?
The price band of the issue is INR 152-160 per share.
3. What is the size of the Saraswati Saree Depot IPO?
The offer size of Saraswati Saree Depot Limited is INR 160.01 crores, consisting of a fresh issue of 64,99,800 shares worth INR 104 crores and an offer to sell 35,01,000 shares worth INR 56.02 crores. The company seeks funds for working capital requirements and general corporate needs.
4. What is the listing date of the Saraswati Saree Depot IPO?
The listing date of Saraswati Saree Depot Limited is August 20, 2024.
