Saraswati Saree Depot IPO sails through on Day 1 on strong NII, retail bidding
Saraswati Saree Depot, which opened for subscription earlier today, sailed through within hours of opening. The subscription for the IPO, which closes on August 14, stood at 2.46 times so far on Day 1.
The issue was fully subscribed in all the categories, but retail and non-institutional investors led the bidding. The retail portion of the IPO was booked 3.34 times and the NII part was subscribed 5.06 times.
The IPO includes a fresh issue of up to 65 lakh equity shares and an offer for sale (OFS) of up to 35 lakh equity shares by the promoter group.
Saraswati Saree Depot IPO price band
The company has fixed a price band of Rs 152-160, where investors can bid for 90 shares in one lot and in multiples thereafter.
Saraswati Saree Depot IPO GMP
In the unlisted market, the company's shares are trading with a GMP of Rs 45, which translates to a premium of 45% to the issue price.
Saraswati Saree Depot IPO review
Analysts advised only high risk investors to subscribe to the issue, considering the industry dynamics, competitive landscape, and cash flow concerns.
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«The saree wholesale industry is highly competitive and fragmented, with low margins and significant seasonality. Despite these challenges, Saraswati Saree Depot's P/E valuation of 17.93x appears reasonable,» said Swastika Investmart.
Other details
Saraswati Saree Depot Limited is a key player in the sarees wholesale (B2B) segment and its origin into
