Maharashtra-based Saraswati Saree Depot Ltd is looking to raise ₹160 crore through an IPO, the proceeds of which will be used by the entity to launch men’s ethnicwear segment and enter the e-commerce space.
“We intend to enter the men’s ethnicwear space, due to the rising trend of multi-day weddings, wider acceptance of traditional outfits during festival celebrations and emergence of brands in the Indian wedding and celebration wear market. This segment is highly unorganised at the moment,” said Nikhil Dulhani, head-investors relations of Saraswati Saree depot Ltd, which earns 90 per cent of its revenues from selling sarees in Western and South India. The company plans to use ₹81 crore from the IPO proceeds for funding its working capital requirements. The entity also plans to use the IPO proceeds on strengthening their sales through e-commerce channels to benefit from evolving customer trends.
“We intend to make investments in digital channels to build an omni-channel engagement experience for our customers, B2B and B2C, and have a dedicated team for our e-commerce operations. We anticipate such investments will increase our profitability and revenue from operations and diversify our revenue generating channels,” Dulhani told businessline on Thursday. The company is engaged in the wholesale business of sarees and other women apparel like kurtis, dress materials, lehengas, blouse pieces and bottoms. During the financial year 2024, Saraswati Saree depot Ltd earned a revenue of ₹610 crore and a net profit of ₹29.5 crore. In the previous year (2022-23), the revenues stood at ₹601 crore and profit after tax was at ₹22.9 crore. The IPO will open for public subscription on August 12 and will close on August 14.