Shares of Saraswati Saree Depot are set to make Dalal Street debut on Tuesday as the company is headed for a decent listing at the bourses. The latest grey market premium (GMP) trends suggest that the stock is headed for a good listing pop on debut at stock exchanges.
Last heard, shares of Saraswati Saree Depot were commanding a grey market premium of 40-45 per share, suggesting a listing pop of around 25-28 per cent to the investors. However, the premium in the unofficial market stood at Rs 80 apiece when the issue had closed for bidding.
Kolhapur-based Saraswati Saree Depot sold its IPO in the price band of Rs 152-160 per share with a lot size of 90 shares, which was open for bidding between August 12 and August 14. The company raised a total of Rs 160.01 crore from its primary offering, which included a fresh share sale of Rs 104 crore and offer-for-sale (OFS) of 35.01 lakh shares.
The issue was overall subscribed a solid 107.52 times, thanks to strong bidding from non-institutional bidders (NIIs), whose allocation was booked a whopping 358.65 times. The quota for qualified institutional investors (QIBs) was subscribed 64.12 times, and the portion of retail investors was subscribed 61.88 times during the bidding process.
Incorporated in 1996, Saraswati Saree Depot is engaged in manufacturing and wholesale women's apparel. Its primary business is the sarees wholesale (B2B) segment. It is also engaged in the wholesale business of other women's apparel such as kurtis, dress materials, blouse pieces, lehengas, bottoms, and more.
Brokerage firms had mixed views on the issue. Unistone Capital was the book running lead manager of the Saraswati Saree Depot IPO, while Bigshare Services served as the registrar for the issue. Shares of the company shall be listed at both BSE and NSE.