Shares of Saraswati Saree Depot made a decent Dalal Street debut on Tuesday as the stock was listed at Rs 200 on BSE, at a premium of 25 per cent over its issue price of Rs 160. Similarly, the stock was listed with a premium of 21.25 per cent at Rs 194 on NSE.
The listing of Saraswati Saree Depot has been on the expected lines. Ahead of their listing, shares of Saraswati Saree were commanding a grey market premium of Rs 40-45 per share, indicating a potential listing gain of 25-28 per cent to the investors on debut.
The Kolhapur-based Sarwaswati Saree Depot ran its initial public offering between August 12 and August 14. The company its shares in the price band of Rs 152-160 per share, with a lot size of 90 shares to raise a total of Rs 160.01 crore. This included a fresh issue of Rs 104 crore and an offer-for-sale (OFS) of 35.01 lakh shares.
The IPO received a strong response, being oversubscribed 107.52 times. Non-institutional investors (NIIs) showed particularly strong interest, with their portion subscribed 358.65 times. The quota for qualified institutional buyers (QIBs) was subscribed 64.12 times, while retail investors subscribed 61.88 times.
Founded in 1996, Saraswati Saree Depot is a manufacturer and wholesaler of women’s apparel, primarily focusing on the B2B saree segment. The company also wholesales other women’s garments such as kurtis, dress materials, blouse pieces, lehengas, and bottoms.
Brokerages had mixed opinions on the IPO. Unistone Capital acted as the book-running lead manager, while Bigshare Services was the registrar for the issue.