Top Reasons to Subscribe Saraswati Saree Depot Limited IPO

Top Reasons to Subscribe Saraswati Saree Depot Limited IPO

Key Factors To Invest In Saraswati Saree Depot Ltd

About Saraswati Saree Depot Ltd

Since its incorporation in 1996, Saraswati Saree Depot Limited has grown to become a well-known producer and wholesaler in the women's clothing industry, concentrating primarily on the business-to-business (B2B) saree market. The firm, which dates back to 1966, has a long history in the saree industry, which is demonstrated by its steady performance and significant market share.

Over 90% of Saraswati Saree Depot's total revenue comes from the wholesale distribution of sarees, which is the company's primary operation. Apart from sarees, the firm deals in the wholesale trade of many kinds of women's clothes, including bottoms, lehengas, kurtis, dress materials, and blouse pieces. Their wide selection of products has allowed them to satisfy a wide range of consumer wants and market preferences.

The firm served more than 15,000 distinct clients in Fiscal 2023, demonstrating the breadth of its clientele. With over 300,000 distinct SKUs, the product catalog demonstrates the company's dedication to both diversity and client happiness. Over 900 weavers and suppliers located in India's main production centers—Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru—provide this enormous inventory.

Key Factors

  • Long-standing Heritage:

Saraswati Saree Depot Limited has a rich history and profound competence in the saree wholesale sector, dating back to 1966 and incorporated in 1996, earning it a solid market reputation.

  • Market Leadership:

The firm is recognized as a leading player in the saree wholesale (B2B) category (Source: CRISIL Report), with a strong market position and substantial industry influence.

  • Diverse Product Range:

The firm has a vast portfolio of over 300,000 SKUs, including sarees, kurtis, dress materials, blouse pieces, lehengas, and bottoms, to meet a wide range of client tastes and market expectations.

  • Strong Supplier Relationships:

With established relationships to over 900 weavers and suppliers in India's key production hubs, the firm provides a steady and diversified supply of high-quality textiles.

  • Large Customer Base:

In Fiscal 2023, the firm supplied more than 15,000 unique clients, exhibiting its broad reach and customer loyalty.

  • Revenue Generation:

More than 90% of the company's income comes from saree sales, demonstrating a concentrated and profitable business plan.

Key Details

IPO Date: 12 August 2024 to 14 August 2024

Face Value: ?2 per share

Price Band: ?152 to ?160 per share

Lot Size: 90 Shares?

Total Issue Size: ?160.01 Cr

Objectives Of The IPO

  • Funding working capital requirements of the company.
  • General corporate purposes.

Conclusion

Saraswati Saree Depot Limited, with its long history and strong market presence, is a key participant in the B2B saree wholesale sector. Since its foundation in 1996, the firm has created a strong portfolio supported by a large network of over 900 weavers and suppliers, while continually catering to a varied client base with over 300,000 SKUs. The company's outstanding income generating, mostly from saree sales, demonstrates a targeted and lucrative business plan.

The planned IPO, which will take place between August 12 and August 14, 2024, intends to boost the company's financial position by funding working capital requirements and other corporate reasons. Saraswati Saree Depot Limited's IPO, priced between ?152 to ?160 per share with a total issue size of ?160.01 crore, offers investors a chance to contribute to the company's growth and success.

The company's recent financial record, which has included consistent revenue growth and increased profitability, demonstrates its durability and potential for long-term growth. Saraswati Saree Depot Limited is well-positioned to maintain its lead in the women's garment business as it expands its market presence and product offerings. Investors may look forward to a bright future with this established and thriving corporation.

Ravin Jyot singh

Attended Ravinsingh

7 个月

Very informative

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