Saraswati Saree Depot IPO opens on Aug 12 – Check issue details, GMP
Saraswati Saree Depot Limited is set to make its debut on the Indian stock market with its much-anticipated Initial Public Offering (IPO). The company, a prominent player in the women’s clothing industry, specializing in sarees, is looking to tap the public market to fund its growth plans and expansion initiatives.
IPO Details
Issue Type: Book Built Issue
Issue Size: The IPO comprises a combination of fresh issue and offer for sale, amounting to a total issue size up to ₹ 160 crore.
Price Band: ₹152 to ₹160 per share
Market Lot: 90 shares
Issue Open Date: August 12, 2024
Issue Close Date: August 14, 2024
Listing Exchange: NSE, BSE
Company Overview
Saraswati Saree Depot has established itself as a leading manufacturer and wholesaler of sarees in India. With a strong foothold in the business-to-business (B2B) segment, the company has built a robust distribution network across the country. The IPO proceeds will be utilized to strengthen the company’s working capital, expand its product range, and enhance its distribution capabilities.
Objectives of Saraswati Saree Depot Limited IPO
The primary objectives of Saraswati Saree Depot Limited’s IPO are:
- Funding working capital requirements of the Company; and
- General corporate purposes
Saraswati Saree Depot IPO GMP
The Grey Market Premium (GMP) for the Saraswati Saree Depot IPO is currently around ₹20.
This means that shares are being traded in the grey market at a premium of ₹20 over the upper price band of ₹160.
- GMP is an unofficial indicator of market sentiment and doesn’t guarantee the actual listing price.
Investment Highlights
Strong Market Position: The company’s dominance in the saree market presents a significant growth opportunity.
Proven Business Model: With a successful track record, the company has demonstrated its ability to generate consistent revenue.
Expansion Plans: The IPO proceeds will fuel the company’s growth initiatives, creating potential for future value appreciation.
Risks and Considerations
Industry Competition: The textile industry is highly competitive, which could impact profit margins.
Economic Factors: Fluctuations in consumer spending and raw material prices can affect the company’s performance.
IPO Valuation: Investors should carefully evaluate the company’s valuation compared to its peers.
IPO Important Dates
IPO Open Date: Monday, August 12, 2024
IPO Close Date: Wednesday, August 14, 2024
Basis of Allotment: Friday, August 16, 2024
Initiation of Refunds: Monday, August 19, 2024
Credit of Shares to Demat: Monday, August 19, 2024
Listing Date: Tuesday, August 20, 2024
Disclaimer: This information is based on available public data and should not be considered financial advice. Investors are advised to conduct thorough research or consult with a financial advisor before making investment decisions.