Saraswati Saree jumps 31% on Day 1 at BSE

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Shares of Saraswati Saree Depot on Tuesday made a strong debut at the bourses. Against an IPO price of ₹160, the stock of Kolhapur-based company listed at ₹194 on the NSE. After dipping to a day’s low of ₹186, it closed at ₹203.70 — a gain of 27 per cent over the IPO price. On the BSE, the stock opened at ₹200 and closed at ₹209.95, up 31.22 per cent. Shares ended at the upper circuit (5 per cent) on both the exchanges.

The initial public offering of Saraswati Saree Depot was a blockbuster as it received strong response from all categories of investors. The issue closed with an overall subscription figure of 107.52 times. The IPO had a price band of ₹152-160. The offer size was ₹160.01 crore, which included a fresh issue worth ₹104 crore and an offer-for-sale of ₹56.02 crore. 

The company plans to use ₹81 crore from the IPO proceeds for working capital requirements. It also plans to use the IPO funds to strengthen its sales through e-commerce channels and benefit from evolving customer trends.

The company is engaged in the wholesale business of sarees and other women’s apparel like kurtis, dress materials, lehengas, blouse pieces and bottoms. During 2024, Saraswati Saree Depot earned a revenue of ₹610 crore and a net profit of ₹29.5 crore. In the previous year (2022-23), revenues stood at ₹601 crore and profit after tax at ₹22.9 crore.

Unistone Capital Pvt Ltd is the book-running lead manager, while Bigshare Services Pvt Ltd is the registrar for the issue.