Saraswati Saree Depot IPO Gets High Subscription :The IPO of Saraswati Saree Depot Limited, a company engaged in the business of sarees, has received tremendous response from the investors. This IPO has been subscribed 107 times on its last day. At the same time, its premium in the gray market has increased to 50 percent. In this regard, there are indications that the listing of the company’s stock can be very strong next week. This IPO was open from 12 August to 14 August 2024. Shares will be allotted in the IPO on August 16, while its listing is on August 20.
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Saraswati Saree Depot IPO: Subscribed 107 times
Saraswati Saree Depot Limited’s IPO has received a tremendous response from investors. This IPO has been subscribed more than 107 times overall. About 50 percent of this IPO was reserved for qualified institutional buyers (QIB) and it was subscribed 64.12 times on the last day. In this, 35 percent was reserved for retail investors and it was subscribed 60.53 times. While 15 percent was reserved for non-institutional investors (NII) and it was subscribed 358.33 times.
Saraswati Saree Depot IPO Latest GMP
There has been a lot of activity in the grey market regarding Saraswati Saree’s IPO. Today, on the last day of the issue, the company’s unlisted stock is at a premium of Rs 80. This premium is 50 percent in terms of the upper price band of Rs 160. Whereas on the first day of the issue, the GMP was only 35 percent.
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IPO: What is the outlook for the company?
According to Canara Bank Securities, Saraswati Sarees has now planned to enter the ethnic wear space for men, driven by the growing trend of multi-day weddings, acceptance of traditional attire during the festive season and emerging as a major brand in the Indian wedding and celebration wear market. The company has shown impressive financial performance.
According to brokerage house SMIFS, the company serves 13,000 customers, which is expected to grow in the future through its e-commerce initiatives, while it is expected to benefit from growth in the saree market. Organized retailers are specifically targeting the saree market with mid to premium range offerings. This growth is reflected in the growth in the company’s average net sales per customer. However, the saree business is stable and new ventures in men’s ethnic wear may improve future growth rates with cheaper valuations.
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According to Swastika Investmart, Saraswati Saree Depot is a leading player in the wholesale saree market, characterized by a diverse supplier and customer base. Its extensive product portfolio and bulk buying capabilities provide a competitive edge. Although the company has maintained stable profitability, negative cash flow remains a concern. The saree wholesale industry is highly competitive, with challenges such as low margins and seasonality.
(Disclaimer: Investing or selling stocks is advised by the brokerage house. These are not the personal views of Financial Express. There are risks in the market, so take expert advice before investing.)
