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The initial public offering (IPO) of Kolhapur-based Saraswati Saree Depot saw robust demand on its first day of bidding, with the issue being subscribed 4.37 times on August 12, despite market volatility. The initial public offer (IPO), aiming to raise ₹160.02 crore, includes a fresh issue and an offer-for-sale (OFS) by promoters.
Saraswati Saree Depot, a key player in the wholesale saree segment, is also involved in selling other women’s apparel, such as kurtis, dress materials, and lehengas. The company recorded a net profit of ₹29.5 crore for the fiscal year 2024, marking a 28.5% increase from the previous year. Revenue from operations grew slightly by 1.5% to ₹610.9 crore, while EBITDA increased by 18.7% with margins improving to 6.61%.
Investors demonstrated major interest, purchasing 4.37 crore equity shares against the issue size of 1 crore shares on the first day. Non-institutional investors (NIIs) led the way, subscribing 12.62 times their allotted quota. Retail investors followed closely, buying 5.39 times the portion reserved for them, while qualified institutional buyers (QIBs) also participated, bidding 1.19 times their allocated shares.
The initial public offer (IPO) is set to close on August 14, with the price band fixed at ₹152-₹160 per share. The company plans to utilize ₹81 crore from the fresh issue proceeds for working capital requirements, while the remaining funds will be allocated for general corporate purposes. The proceeds from the offer-for-sale (OFS) will be directed to the promoters, who are the selling shareholders.