Saraswati Saree Depot
Book Building issueMainboard₹160 Cr issue
+25.00%
Listing gain over issue price
Issue size
₹160 Cr
1 lot at cut-off
₹14,400
Lot size
90shares
Open
12 Aug 2024
Close
14 Aug 2024
Allotment
16 Aug 2024
Listing
20 Aug 2024
Listing performance
Issue price
₹160
Listed at
₹200
Listing-day close
₹209.95
Latest price
₹58.82
Close on 23 Oct 2026
Listing gain
+25.00%
Return since issue
-63.24%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 12 Aug 2024 – 14 Aug 2024
- Listing date
- 20 Aug 2024
- Face value
- ₹10 per share
- Issue price
- ₹160 per share
- Lot size
- 90 shares
- Issue type
- Book Building issue
- Total issue size
- ₹160 Cr
- Market cap at offer price
- ₹634 Cr
- Promoter holding
- 100.00% → 74.75% pre-issue → post-issue
- ISIN
- INE0PQ101010
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Unistone Capital Pvt.Ltd.
- Registered office
- Sr No.144/1 Manademala, Near Tawade Hotel, Gandhinagar Road, Uchagaon, Maharashtra
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 0 | — | — |
Application size
Minimum 90 shares per lot, in multiples, at ₹160
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 90 | ₹14,400 |
| Retail (max) | 13 | 1,170 | ₹1,87,200 |
| S-HNI (min) | 14 | 1,260 | ₹2,01,600 |
| S-HNI (max) | 69 | 6,210 | ₹9,93,600 |
| B-HNI (min) | 70 | 6,300 | ₹10,08,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Shares allocated
0
Anchor portion
₹0 Cr
at ₹160 per share
Valuation and performance
Valuation at offer price
₹160 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 8.92 | 7.46 |
| P/E (×) | 17.94 | 21.45 |
| Price to book (×) | 8.16 | — |
| Market cap | — | ₹634 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 45.49%
- ROCE
- 64.46%
- Debt / equity
- 0.67
- PAT margin
- 4.83%
- NAV per share
- ₹19.61
- Price to book
- 8.16
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Saraswati Saree Depot
Saraswati Saree Depot Limited (SSDL) is a key player in India's wholesale sarees segment (Source: CRISIL Report). The company was incorporated in 2021 and traces its business origins to 1966 through the Dulhani family's engagement in the sarees wholesale business. SSDL operates exclusively in the B2B wholesale segment, trading women's apparel including sarees (90.85% of FY2024 revenue), kurtis, dress materials, blouse pieces, lehengas, and bottoms. In FY2024, the company served over 13,000 unique customers with a product catalogue exceeding 300,000 SKUs. The business model is wholesale-focused, with operations concentrated in two stores in Maharashtra (Kolhapur and Ulhasnagar), generating 88.32% and 11.68% of revenues respectively. The company sources all products from third-party weavers (900+ in FY2023) and distributes through its stores. Revenue from operations grew from ₹5,495.76 million in FY2022 to ₹6,109.04 million in FY2024.
Company Analysis
from RHPSaraswati Saree Depot Limited is a wholesale distributor of women's apparel, primarily sarees, operating a B2B business in India's ethnic wear segment.
Saraswati Saree Depot Limited (SSDL) is a key player in India's wholesale sarees segment (Source: CRISIL Report). The company was incorporated in 2021 and traces its business origins to 1966 through the Dulhani family's engagement in the sarees wholesale business. SSDL operates exclusively in the B2B wholesale segment, trading women's apparel including sarees (90.85% of FY2024 revenue), kurtis, dress materials, blouse pieces, lehengas, and bottoms. In FY2024, the company served over 13,000 unique customers with a product catalogue exceeding 300,000 SKUs. The business model is wholesale-focused, with operations concentrated in two stores in Maharashtra (Kolhapur and Ulhasnagar), generating 88.32% and 11.68% of revenues respectively. The company sources all products from third-party weavers (900+ in FY2023) and distributes through its stores. Revenue from operations grew from ₹5,495.76 million in FY2022 to ₹6,109.04 million in FY2024.
Apparel and FashionEthnic WearWholesale DistributionWomen's Wear
Objects of the Issue
- Funding working capital requirements of our Company ₹810.00 million p.32
- General corporate purposes p.32
- Funding working capital requirements of our Company ₹810.00 million p.126
- General corporate purposes p.125
- Funding working capital requirements ₹810.00 million p.128
- General corporate purposes p.128
- To be determined (document indicates Fresh Issue portion of the Offer) p.326
Issue Structure
- Total Issue
- Up to 10,000,800 Equity Shares of face value ₹10 each aggregating up to ₹[●] million
- Fresh Issue
- Up to 6,499,800 Equity Shares of face value ₹10 each aggregating up to ₹[●] million
- Offer for Sale
- Up to 3,501,000 Equity Shares of face value ₹10 each aggregating up to ₹[●] million
- Face Value
- ₹10 per Equity Share
Business Model
B2B wholesale distribution of women's ethnic apparel. The company sources finished goods from third-party weavers/suppliers and sells to wholesale customers through two physical store locations. Revenue is generated primarily from sarees sales (90.85% of total revenues in FY2024), with additional revenue from kurtis, dress materials, blouse pieces, lehengas, bottoms and other women's apparel. The business operates on a high-volume, low-margin model dependent on turnover growth and operational efficiency.
Business Segments
Trading and wholesale distribution of women's sarees
Trading and wholesale distribution of women's kurtis
Trading and wholesale distribution of dress materials, blouse pieces, lehengas, bottoms and other ethnic wear
Sale of sarees, lehengas, and apparel products to retailers, wholesalers, and distributors through physical stores
Wholesale and distribution of sarees across various fabrics, weaves, occasions and patterns including silk, cotton, synthetic, handloom and powerloom sarees
Wholesale and distribution of kurtis as part of ready-made garments segment
Wholesale and distribution of dress materials, blouse pieces, lehengas, bottoms, pant and shirt pieces, and other women's apparel accessories
The company has identified only one reportable segment viz. whole sale trading in sarees, dress material and allied garments taking into account nature of products and services, the differing risks and returns and the internal business reporting system.
Wholesale distribution of sarees of various types including silk sarees, cotton sarees, synthetic fibre sarees, and blends/mixtures. The company serves the B2B segment and is recognized as a key player in sarees wholesale.
Wholesale business of women's ready-made apparel including kurtis (started 2017), dress materials, blouse pieces, lehengas, bottoms, pyjamas, one-piece clothing and dresses. Kurti business has been recognized with awards such as 'Star of the Industry' and 'Iconic Brand' at annual Kurti Expo events.
SWOT Analysis
Strengths
- • Key player in sarees wholesale (B2B) segment with 90%+ revenue concentration and established market presence since 1966(p.31)
- • Large customer base with 13,000+ unique customers served and extensive product catalogue of 300,000+ SKUs(p.31)
- • Consistent revenue growth from ₹5,495.76 million (FY2022) to ₹6,125.80 million (FY2024)(p.56)
- • Improving profitability with EBITDA margin increasing from 3.79% (FY2022) to 6.73% (FY2024) and PAT margin from 2.24% to 4.83%(p.56)
- • Broad supplier network of 900+ weavers providing sourcing flexibility and diversification(p.52)
- • Established market presence in saree retail with consistent revenue growth(p.69)
- • Strong financial performance with growing profitability(p.95)
- • Diversified product portfolio expanding beyond traditional sarees(p.74)
- • Established relationship with weavers/suppliers for manufacturing(p.73)
- • Diversified supplier and customer base across 900+ weavers and 13,000+ customers(p.190)
- • Extensive product portfolio with 300,000+ SKUs reducing dependency on single category(p.190)
- • Bulk purchasing capabilities enabling cost optimization and competitive pricing(p.190)
- • Experienced promoters with 38+ years and 27+ years in apparel industry respectively(p.190)
- • 55+ year heritage with established relationships with weavers and customers(p.191)
- • Strong financial performance with 6.6% operating margin and 45.3% ROCE in FY2024(p.182)
- • Long-established presence in apparel industry with deep product expertise(p.213)
- • Experienced management team with multi-decade tenure in wholesale saree business(p.213)
- • Strong brand recognition with multiple industry awards(p.204)
- • Established supplier network and weaving house relationships(p.213)
- • Zero defaults with financial institutions(p.205)
- • Revenue growth trajectory with improving profitability(p.249)
- • Established market position in B2B sarees wholesale for 58 years(p.279)
- • Diverse and extensive product portfolio(p.279)
- • Strong supplier relationships across major saree-producing hubs(p.280)
- • Significant revenue growth trajectory(p.280)
- • Successful recurring Utsav event generating peak revenues(p.280)
- • Improved profitability margins(p.283)
- • Strong capital structure with reduced debt(p.283)
- • Diversified geographic presence with concentrated strength in West(p.282)
Weaknesses
- • Highly concentrated business model with 90.85% of revenue from sarees alone, creating product dependency(p.47)
- • Geographic concentration with 82.68% of FY2024 revenue from western zone, limiting geographic diversification(p.51)
- • Wholesale-only operations without direct retail presence or consumer brand visibility(p.49)
- • High working capital requirements with net working capital of ₹910.46 million in FY2024, increasing from ₹509.58 million in FY2023(p.53)
- • Negative operating cash flows in FY2024 (₹-85.40 million) and FY2022 (₹-412.13 million)(p.54)
- • Low profit margins as high-volume low-margin business with PAT margin of only 4.83% in FY2024(p.56)
- • Dependence on leave-and-license arrangements for both stores from related parties with exposure to rental market fluctuations(p.59)
- • Prior compliance failures including delayed statutory filings and non-compliances under Companies Act with pending adjudication applications(p.57)
- • Related party transaction exposure with 29.32% of FY2024 revenue involved in related party transactions(p.62)
- • History of delays in payment of statutory dues including provident fund, TDS, GST(p.65)
- • Significant dependence on related party financing(p.67)
- • Unregistered trademarks and pending applications facing objections(p.72)
- • Excessive dependence on promoters and key managerial personnel(p.71)
- • Outstanding litigations involving promoters and directors(p.66)
- • Operated without valid shops and establishment licence(p.68)
- • High concentration of revenue from Maharashtra (78.98% in FY2024)(p.188)
- • Significant revenue dependence on festive season (37.36% in Q3 FY2024)(p.187)
- • Limited geographic presence with only two operational stores(p.187)
- • Sarees represent 90.85% of revenue creating product category concentration risk(p.192)
- • Relatively higher debt-to-equity ratio of 0.67 compared to some peers(p.183)
- • Significant dependence on founder family with concentrated shareholding(p.233)
- • Lack of quantitative inventory tracking systems(p.244)
- • High inventory levels relative to operations(p.248)
- • Reliance on short-term borrowings and director/family advances(p.262)
- • No formal dividend policy established(p.242)
- • No subsidiaries or formal strategic partnerships(p.207)
- • Heavy geographic concentration risk in Maharashtra(p.282)
- • Dependence on top suppliers(p.283)
- • High unsecured borrowings with call-on-demand feature(p.301)
- • Litigation involving promoter(p.305)
- • Multiple regulatory compliance violations by the company(p.303)
- • Limited geographic diversification with two physical store locations(p.281)
Opportunities
- • Expansion into retail outlets and direct consumer engagement to build brand loyalty(p.64)
- • Geographic expansion beyond western zone into emerging markets across India(p.64)
- • Growing organized apparel market offering opportunities for market share gains from unorganized players(p.50)
- • Product diversification beyond sarees with growing kurtis revenue (5.26% in FY2024 vs 4.00% in FY2023)(p.47)
- • Penetration of semi-urban and semi-rural markets with demonstrated growth capability(p.64)
- • Significant untapped potential in southern India saree market(p.69)
- • Growing e-commerce penetration in saree industry(p.73)
- • Geographic origin specialties creating product differentiation opportunities(p.73)
- • Saree industry projected to grow at 5-6% CAGR through FY2029 reaching ₹650-675 billion(p.184)
- • Entry into men's ethnic wear segment growing at 10-11% CAGR with only 7% penetration(p.194)
- • Organized players' market share expected to grow from 25-30% to 32-37% by FY2029(p.165)
- • E-commerce penetration in saree industry expected to increase from 4-5% to 9-11% by FY2029(p.195)
- • Strategy to leverage technology for cost efficiency and enhanced customer experience(p.194)
- • Expansion of product portfolio beyond sarees into ready-made garments and accessories(p.194)
- • Expansion into manufacturing of sarees and garments(p.204)
- • Geographic expansion through new store openings(p.207)
- • Joint venture in Ahmednagar to diversify geographic presence(p.206)
- • Growing market for ethnic wear and sarees in India(p.204)
- • Product portfolio diversification aligned with market trends(p.230)
- • Access to capital markets through IPO for growth financing(p.243)
- • Growing organized retail segment in saree market(p.279)
- • Significant industry growth trajectory(p.279)
- • Shift towards premium and quality products(p.279)
- • Expansion into ready-made garments segment(p.280)
- • Rising middle-class aspiration for branded products(p.279)
Threats
- • High sensitivity to changes in consumer preferences for women's sarees and ethnic wear(p.48)
- • Seasonal business volatility with 37.36% of revenue concentrated in 3-month festive season(p.51)
- • Geographic concentration exposure to Maharashtra localized disruptions, natural disasters, and social unrest(p.48)
- • Intense competition from fragmented unorganized industry with large number of smaller players(p.50)
- • Dependency on uncontracted third-party weavers/suppliers with no exclusive agreements or long-term arrangements(p.52)
- • Supplier concentration risk with top 5 weavers representing 17.25% of purchases in FY2024(p.52)
- • Pricing pressure from competitors potentially eroding profit margins in low-margin business(p.57)
- • Potential for regulatory changes and increased compliance costs in apparel industry(p.30)
- • Inventory management risks with inventory as 17.63% of FY2024 revenue requiring accurate demand forecasting(p.55)
- • Dependence on third-party transportation providers for product delivery with 162 transporters used in FY2024(p.61)
- • Dependence on third-party weavers/suppliers with risk of supply disruption(p.74)
- • Shift in consumer preferences from sarees to western wear and kurtis(p.74)
- • Competition from e-commerce and direct-to-consumer models(p.73)
- • Labor unrest and shortage of skilled weavers and artisans(p.68)
- • Regulatory risks including compliance failures and licensing renewals(p.67)
- • Economic slowdown and inflation impacting consumer spending(p.79)
- • Conflicts of interest with promoter group entities in similar business(p.66)
- • Apparel market faces intense competition with market saturation challenges(p.196)
- • Saree industry faces cyclical demand dependent on festive and wedding seasons(p.172)
- • Shift towards western apparel reducing saree's share in daily wear market(p.172)
- • Raw material supply chain bottlenecks due to regional production concentration(p.172)
- • Fast fashion trends creating sustainability and labor practice concerns(p.163)
- • Regulatory compliance impact on fragmented industry with GST implementation(p.173)
- • Absence of quantitative inventory controls creates operational risk(p.244)
- • Exposure to fluctuations in input costs and supply chain disruptions(p.242)
- • Working capital intensity and inventory management challenges(p.249)
- • Competitive pressures in apparel and saree retail segment(p.204)
- • Reliance on trade credit and unsecured borrowings(p.262)
- • Dependence on single business line (wholesale sarees/ethnic wear)(p.269)
- • Pronounced business seasonality with peak demand concentration(p.300)
- • Risk of seasonal inventory aging and financial losses(p.284)
- • Competitive retail environment(p.300)
- • Religious and cultural sensitivity risks in marketing and product design(p.284)
- • Dependence on consistent supplier relationships and product quality(p.283)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mahesh Dulhani | Promoter | 12.50% | — |
| Rajesh Dulhani | Promoter | 12.50% | — |
| Shankar Dulhani | Promoter | 10.00% | — |
| Vinod Dulhani | Promoter | 7.50% | — |
| Tejas Dulhani | Promoter Group Selling Shareholder | 5.00% | — |
| Amar Dulhani | Promoter Group Selling Shareholder | 7.00% | — |
| Shevakram Dulhani | Promoter Group Selling Shareholder | 5.00% | — |
| Sujandas Dulhani | Promoter Group Selling Shareholder | 5.00% | — |
| Tushar Dulhani | Promoter Group Selling Shareholder | 6.25% | — |
| Nikhil Dulhani | Promoter Group Selling Shareholder | 6.25% | — |
| Shankar Dulhani | Promoter | 3,310,000 shares (10.00%) | — |
| Mahesh Dulhani | Promoter | 4,137,500 shares (12.50%) | — |
| Rajesh Dulhani | Promoter | 4,137,500 shares (12.50%) | — |
| Vinod Dulhani | Promoter | 2,482,500 shares (7.50%) | — |
| Amar Dulhani | Promoter Group | 2,317,000 shares (7.00%) | — |
| Tushar Dulhani | Promoter Group | 2,068,750 shares (6.25%) | — |
| Nikhil Dulhani | Promoter Group | 2,068,750 shares (6.25%) | — |
| Tejas Dulhani | Promoter Group Selling Shareholder | 1,655,000 shares (5.00%) | — |
| Amar Dulhani | Promoter Group Selling Shareholder | 2,317,000 shares (7.00%) | — |
| Shevakram Dulhani | Promoter Group Selling Shareholder | 1,655,000 shares (5.00%) | — |
| Sujandas Dulhani | Promoter Group Selling Shareholder | 1,655,000 shares (5.00%) | — |
| Tushar Dulhani | Promoter Group Selling Shareholder | 2,068,750 shares (6.25%) | — |
| Nikhil Dulhani | Promoter Group Selling Shareholder | 2,068,750 shares (6.25%) | — |
| Shankar Dulhani | Promoter | — | — |
| Vinod Dulhani | Promoter | — | — |
| Mahesh Dulhani | Promoter | — | — |
| Rajesh Dulhani | Promoter | — | — |
| Shankar Dulhani | Promoter | 10.00% | — |
| Mahesh Dulhani | Promoter | 12.50% | — |
| Rajesh Dulhani | Promoter | 12.50% | — |
| Vinod Dulhani | Promoter | 7.50% | — |
| Shankar Dulhani | Promoter | 10% | — |
| Mahesh Dulhani | Promoter | 10% | — |
| Anil Dulhani | Promoter | 7% | — |
| Vinod Dulhani | Promoter | 5% | — |
| Rajesh Dulhani | Promoter | 10% | — |
| Sujandas Dulhani | Promoter | 5% | — |
| Shevakram Dulhani | Promoter | 5% | — |
| Dinesh Dulhani | Promoter | 5% | — |
| Gulshan Dulhani | Promoter | 5% | — |
| Amar Dulhani | Promoter | 7% | — |
| Amit Dulhani | Promoter | 6% | — |
| Nikhil Dulhani | Promoter | 5% | — |
| Tushar Dulhani | Promoter | 5% | — |
| Gaurav Dulhani | Promoter | 5% | — |
| Tejas Dulhani | Promoter Group Selling Shareholder | 5% | — |
| Aryan Dulhani | Promoter | 5% | — |
| Tejas Dulhani | Promoter Group Selling Shareholder | — | — |
| Amar Dulhani | Promoter Group Selling Shareholder | — | — |
| Shevakram Duhani | Promoter Group Selling Shareholder | — | — |
| Sujandas Dulhani | Promoter Group Selling Shareholder | — | — |
| Tushar Dulhani | Promoter Group Selling Shareholder | — | — |
| Nikhil Dulhani | Promoter Group Selling Shareholder | — | — |
Leadership
Shankar Dulhani · Chairperson and Executive Director
Vinod Dulhani · Managing Director and Chief Executive Officer
Mahesh Vyas · Chief Financial Officer
Ruchika Gheeya · Company Secretary and Compliance Officer
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.
Saraswati Saree Depot IPO FAQs
What is the lot size of Saraswati Saree Depot IPO?
The minimum lot size of Saraswati Saree Depot IPO is 90 shares. One lot costs ₹14,400 at the cut-off price.
When does Saraswati Saree Depot IPO open and close?
Saraswati Saree Depot IPO opened for subscription on 12 Aug 2024 and closed on 14 Aug 2024.
What is the listing date of Saraswati Saree Depot IPO?
Saraswati Saree Depot IPO listed on 20 Aug 2024.