About
Founded in 1966, Saraswati Saree Depot is a key player in the sarees wholesale (B2B) segment and is also engaged in the wholesale business of other women’s apparel wear such as kurtis, dress materials, blouse pieces, lehengas, bottoms, etc. On average, more than 90% of the total revenues are generated from selling sarees. In Fiscal 2023, the company has served over 15,000 unique customers and has a product catalogue of over 3,00,000 different SKUs. The sarees are sourced from different manufacturers across India in hubs like Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru.
Issue size
| Funds Raised in the IPO |
Amount |
| Overall |
₹160.02 crores |
| Fresh Issue |
₹104 crores |
| Offer for sale |
₹56.02 crores |
Utilisation of proceeds
| Purpose |
INR crores (%) |
| Working capital requirements |
81 (77.89%) |
| General corporate purposes |
23 (22.11%) |
Financials
| Financial year ended |
March 2022 |
March 2023 |
March 2024 |
| Total assets |
169.93 |
188.85 |
205.94 |
| Revenue |
550.31 |
603.52 |
612.58 |
| Profit After Tax |
12.31 |
22.97 |
29.53 |
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Strengths
- Ability to buy in bulk quantities: The company can procure products in large quantities from its weavers/ suppliers due to several key advantages including having over 300,000 SKUs providing its customers a variety of options, a wide customer base, and available operational cash flows.
- Diversified supplier and customer base: The Company regularly sources sarees and other women’s apparel from more than 900 weavers/suppliers across different states in India and majorly sells products in southern and western regions comprising mainly Maharashtra, Goa, Karnataka, and Tamil Nadu serving over 15,000 unique customers in fiscal 2023.
- Existing client and supplier relationships: With over 50 years of experience, The long-standing supplier relationships provide benefits in pricing, exclusive designs, and payment terms, offering customers value in terms of competitive pricing, unique product selection, and superior quality. These relationships also lead to ongoing customer loyalty.
Risks
- Reliance on women’s saree sales: The company’s operation relies heavily on the revenue generated from selling women’s sarees, making it susceptible to shifts in demand. If consumer tastes and preferences were to change, it could harm the company’s business performance, operational outcomes, and financial stability.
- Intense competition: The company functions in markets that are extremely competitive for all of its product categories. If the company fails to effectively stand its ground against the competition, it could negatively impact the business performance, operational outcomes, and overall financial health.
- Geographical concentration: Nearly 81% of the company’s revenue has been generated from the western zone, any loss of business from this region may adversely affect the revenues and profitability.
Schedule
| Issue open date |
12 Aug 2024 |
| Issue close date |
14 Aug 2024 |
| Price band |
₹152 – ₹160 |
| Minimum bid quantity |
90 & Multiples thereof |
| UPI mandate deadline |
14 Aug 2024 (5 PM) |
| Allotment finalization |
16 Aug 2024 |
| Refund initiation |
19 Aug 2024 |
| Share credit |
19 Aug 2024 |
| Listing date |
20 Aug 2024 |
| Mandate end date |
29 Aug 2024 |
| Lock-in end date for anchor investors (50%) |
15 Sep 2024 |
| Lock-in end date for anchor investors (remaining) |
15 Nov 2024 |
Note: The schedule is tentative. The anchor lock-in period ends 30 days after the actual allotment date for 50% of the shares and 90 days after for the remaining portion. The allotment status can be checked on the registrar’s website and the exchange website.
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