Saraswati Saree Depot IPO: Public Issue Subscribed 60x On Final Day; GMP Soars; Share Allotment Awaited

The initial public offering (IPO) of Saraswati Saree Depot has garnered strong investor attention in the market, driven by bumper participation from both retail and non-institutional investors (NIIs). As the third and final day of bidding unfolds, the IPO subscription numbers have skyrocketed.

As of 2 pm on the third and final day of bidding, Saraswati Saree Depot's IPO subscription status stood at 60.72 times, according to data from the Bombay Stock Exchange (BSE). The IPO, which consists of 1,00,00,800 shares on offer, received bids for a staggering 60,72,81,840 shares, showcasing the overwhelming demand for the company's stock.

The non-institutional investor segment, often a key indicator of the IPO's popularity, led the charge with 252.65 times subscriptions. Retail investors, who often follow the lead of NIIs, also displayed strong interest, subscribing to the offer 46.64 times. Qualified Institutional Buyers (QIBs), typically seen as the most discerning segment of the market, subscribed to their allotted quota 13 times.

The enthusiasm surrounding Saraswati Saree Depot's IPO was evident from the first day of bidding, despite muted market conditions. On the initial day, the IPO was subscribed 4.37 times, with the retail investor category leading the way at 5.39 times subscription. The non-institutional investor portion saw a 12.62 times subscription, while the QIB segment was subscribed 1.19 times.

The momentum continued into the second day of subscriptions. The IPO received 16.34 times subscription, reflecting sustained interest from investors. Retail investors subscribed 20.30 times, while NIIs, undeterred by the already high numbers, pushed their subscriptions to 57.18 times. QIBs, who often wait until the final day to place their bids, showed cautious optimism with a 1.32 times subscription rate.

Established in 1966, Saraswati Saree Depot has long been a significant player in the Indian saree market. The Kolhapur-based company has built a reputation for offering a wide range of sarees and other women's clothing items in bulk, including bottoms, lehengas, kurtis, dress materials, and blouse pieces. Over the years, the company has developed strong relationships with manufacturers in key textile hubs across India, including Surat, Varanasi, Mau, Madurai, Dharmavaram, Kolkata, and Bengaluru. This network has allowed Saraswati Saree Depot to offer a diverse and high-quality product range to its customers.

The Saraswati Saree Depot IPO comprises a mix of a fresh issue of up to 65 lakh equity shares and an offer for sale (OFS) of 35 lakh equity shares by the promoter group. The IPO is priced in the range of Rs 152 to Rs 160 per equity share, with a face value of Rs 10 each. At the upper end of the price band, the total IPO size is pegged at Rs 160 crore.

The net proceeds from the fresh issue will be utilized to meet the company's working capital requirements and for other corporate purposes. The offer for sale sees key promoters-Tejas, Amar, Shevakram, and Sujandas Dulhani-each offering 7,00,200 equity shares, while Tushar and Nikhil Dulhani are selling 3,50,100 equity shares each.

In addition to the strong subscription numbers, the grey market premium (GMP) for Saraswati Saree Depot shares has also been a topic of interest among investors. As of today, the GMP stands at +80, indicating that shares are trading at a premium in the unofficial market. This suggests that the market expects the stock to list at around Rs 240 per share, which is 50% higher than the upper end of the IPO price band.

The GMP has been on a steady rise over the past week, with the lowest premium recorded at Rs 20 and the highest at Rs 80. This positive trend in the grey market is often seen as an indicator of strong listing gains, adding to the overall optimism surrounding the IPO.

As the bidding process for Saraswati Saree Depot's IPO concludes, the market's attention will now shift to the listing day. Given the strong subscription numbers, particularly from retail and non-institutional investors, coupled with the positive grey market signals, the company is poised for a successful debut on the stock exchanges.

For investors, the high demand and the soaring GMP suggest that Saraswati Saree Depot's shares could deliver healthy returns on listing day. As the company embarks on its next chapter as a publicly traded entity, it will be interesting to see how it leverages the capital raised to further strengthen its market position and drive growth.