Saraswati Saree shares hit 5% upper circuit post strong listing
shares of Saraswati Saree Depot hit a 5% upper circuit at Rs 209.95 on BSE following their strong debut on the exchanges on Tuesday. The stock debuted at Rs 200 on BSE, reflecting a premium of Rs 40 or 25% over the IPO price of Rs 160. On the NSE, it was listed at Rs 194, reflecting a 21.25% premium.
The listing was slightly below expectations, with shares previously trading at a grey market premium (GMP) of 29% to the issue price.
«The company was anticipated to list with a premium of 20% to 25%. SSDL's strategic initiatives in inventory management, expansion into men’s ethnic wear, and a growing e-commerce platform are expected to fuel further growth,» said Akriti Mehrotra, Research Analyst at Stoxbox.
«With a P/E ratio of 17.9x based on FY24 earnings, the IPO is attractively priced. Investors who have been allotted with their shares are advised to hold the position for a medium to long-term perspective,» Akriti added.
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The IPO of Saraswati Saree Depot received an overwhelming response from investors with an overall subscription of over 107 times at close, driven by strong interest from non-institutional and institutional investors.
The IPO included 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. Under the OFS, Tejas Dulhani, Amar Dulhani, Shevakram Dulhani, Sujandas Dulhani, Tushar Dulhani, and Nikhil Dulhani offloaded their part stakes.
