Saraswati Saree Depot IPO gets fully subscribed on Day 1 of offer

The initial public offer of Saraswati Saree Depot, a key player in the sarees wholesale segment, was subscribed more than four times on the first day of subscription on Monday.

The Rs 160-crore initial share sale received bids for 4,37,44,950 shares against 1,00,00,800 shares on offer, translating into an oversubscription of 4.37 times, according to NSE data.

The quota for non-institutional investors fetched 12.62 times subscription, while the category for Retail Individual Investors (RIIs) got subscribed 5.39 times. The qualified Institutional Buyers (QIBs) portion received 1.19 times subscription.

The Initial Public Offer (IPO) has a fresh issue of up to 64,99,800 equity shares and an offer for sale of up to 35,01,000 equity shares.

The price range for the offer is Rs 152-160 per share.

The initial share sale will conclude on August 14.

The company proposes to utilise the net proceeds from the fresh issue towards funding working capital requirements and general corporate purposes.

The Kolhapur-based company whose origin in the sarees business dates back to the year 1966 is also engaged in the wholesale business of other women's apparel wear such as kurtis, dress materials, blouse pieces, lehengas, and bottoms.

The company sources sarees from different manufacturers across India and has developed relationships in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.

Saraswati Saree Depot operates from two stores located in Maharashtra (Kolhapur and Ulhasnagar).

Unistone Capital is the manager to the offer.

The equity shares of the firm are expected to be listed on the BSE and the NSE.