Next OLA-Like Move in This IPO? Hits Upper on Listing Day—Will It Double from Its IPO Price?
The public issue was subscribed 107.39 times, with the retail category seeing a subscription of 61.59 times, the Qualified Institutional Buyers (QIB) category 64.12 times
The much-anticipated initial public offering (IPO) of Saraswati Saree Depot, a Kolhapur-based saree manufacturer and wholesaler, has made a notable entrance on Dalal Street. On Tuesday, August 20, the company's shares were listed at Rs 200 on the Bombay Stock Exchange (BSE), reflecting a significant 25 per cent premium over its issue price of Rs 160 per share. Similarly, on the National Stock Exchange (NSE), the stock opened at Rs 194, marking a 21.25 per cent premium.
The listing performance of Saraswati Saree Depot has been in line with market expectations. Prior to the listing, the company’s shares were trading in the grey market at a premium of Rs 40, indicating strong investor interest. Given the upper price band of Rs 160, the stock was widely expected to list at a premium, and it delivered just that with a 25 per cent gain over the IPO price.
Immediately after the listing, Saraswati Saree Depot’s stock hit its upper circuit limit of 5 per cent on the NSE, closing at Rs 203.70. The demand for the stock remained robust, with a bid quantity of 19,62,005 shares—almost half of the total traded volume of 39,27,000 shares on the NSE.
The overwhelming response to Saraswati Saree Depot’s IPO is evident in its subscription figures. The public issue was subscribed 107.39 times, with the retail category seeing a subscription of 61.59 times, the Qualified Institutional Buyers (QIB) category 64.12 times, and the Non-Institutional Investors (NII) category a staggering 358.47 times by August 14, 2024.
The IPO itself was a book-built issue of Rs 160.01 crores, consisting of a fresh issue of 0.65 crore shares aggregating to Rs 104.00 crores, and an offer for sale of 0.35 crore shares aggregating to Rs 56.02 crores.
The strong debut of Saraswati Saree Depot is reminiscent of the recent listing of Ola Electric, which saw its share price nearly double and become a multibagger stock from IPO price.
What do you think? Will Saraswati Saree Depot continue to thrive, or is this just an initial spark? Share your thoughts with us!
Disclaimer: The article is for informational purposes only and not investment advice.
DSIJ’s ‘Flash News Investment' weekly Newsletter recommends profit-making ideas for you based on fundamental and technical analysis. If this interests you, do download the service details here.