Saraswati Saree Depot Limited is engaged in manufacturing and wholesale women’s apparel. Saraswati Saree Depot IPO will be raising 160.01 crores. The issue is a combination of fresh issue of 0.65 crore shares aggregating to Rs 104.00 crores and offer for sale of 0.35 crore shares aggregating to Rs 56.02 crores.
IPO opens
August 12, 2024
IPO Closes
August 14, 2024
IPO Size (Rs.)
₹160.01 Cr
Breakup
New Issue + OFS
Face Value:
₹ 10
IPO Price in Rs :
₹152 to ₹160 per share
Minimum Lot
90 Shares
Listing At
NSE , BSE (mainboard)
QIB
~50%
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Unistone
Registrar
Big share
Saraswati Saree Depot IPO: About The Company
Saraswati Saree Depot is a Kolhapur head-quartered wholesaler of sarees and women ethnic wear.
Other than sarees, the company is engaged in the trading of women’s apparel like kurtis, dress materials, blouse pieces, lehengas, bottoms, etc. on a B2B basis.
The company has served over 13,000 unique customers and had more than 3,00,000 different SKUs in FY2024.
Mr. Shankar Dulhani, Mr. Mahesh Dulhani, Mr. Rajesh Dulhani, and Mr. Vinod Dulhani are the promoters of the company.
Saraswati Saree Depot Limited: Financials
Particulars / Rs. Cr
2024(12)
2023(12)
2022(12)
Revenue from Operations
610.9
601.89
549.58
Revenue Growth (%)
1.5
9.52
–
EBITDA as stated
41.14
34.05
20.85
EBITDA Margin (%)
6.73
5.66
3.79
Net Profit
29.53
22.97
12.31
Net Profit (%)
4.83
3.82
2.24
Share Capital
33.1
0.1
0.1
Net Worth
64.91
35.38
12.41
Total Borrowings
43.49
41.43
66.62
Post issue Share Capital
39.60
FV
10.0
IPO price
160.0
EPS Fy23
5.8
PE Fy23
27.6
EPS Fy24
7.5
PE Fy24
21.5
Market cap in Lacs
634
Market cap / Sales
1.04
Salient Points: Saraswati Saree Depot Limited
Saree industry in India is expected to grow at a 5-6% CAGR from FY2024 to FY2029 reaching Rs 650-675 bn by FY2029.
From the Rs. 104 cr is Fresh Issue , working capital gets Rs. 81 cr.
Company is a B2B player and supplies to 13,000 retailers, most of which are in Maharashtra (79% of revenue) , followed by Karnataka (17%).
sarees account for 90% of its 600 crore revenue.
Company sources Sarees from different manufacturers across India. They ahve developed relationships with these manufacturers in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.
It is adding men’s ethnic wear range to its portfolio.
The company intends to focus on strengthening its sales through e-commerce channels to focus on evolving customer trends. T
Most of the sale is from the store located in Kolhapur (88%) with remaining rom the other store at Ulhasnagar.
Peers
Company/ FY24 figures
CMP Rs.
Revenue Rs. Cr
Net Profit Rs. Cr
NPM (%)
PE
Macp/sales
RONW
Saraswati Saree Depot
160.0
610.9
29.53
4.8%
21.5
1.04
45.49%
Sai Silks (Kalamandir)
159
1,373.55
101.00
7.4%
24.1
1.77
9.49%
They operates a high-volume, low-margin business.
I intend to to apply for Saraswati Saree Depot IPO. Though it is more of regional player with average saree sale value of less than Rs. 400 per piece, Company has has shown consistent growth over the years in revenues and profitability. It is an average issue but could benefit from current good listing seen in main board.
GMP as reported on social media has been Rs. 80(50%)
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
