A saree selling company from Kolhapur, Maharashtra has made a strong debut in the stock market and has made huge profits for its investors on the very first day. We are talking about Saraswati Saree Depot, whose shares were listed in the stock market on Tuesday. It has been listed on BSE with a premium of 25 percent and investors have made a profit of Rs 40 on each share.
IPO got tremendous response
The IPO of Saraswati Saree Depot was opened on 12th August this month and investors had invested money in it till 14th August. Through this issue, the company had invited bids for 10,000,800 shares with a face value of Rs 10. The IPO received an overwhelming response from investors and was subscribed 107.39 times on the last day. Retail investors’ quota was subscribed by 61.88 percent, NII category by 358.65 percent and QIB category by more than 64.12 times.
Listed on NSE at this price
The IPO price band of the company’s shares was Rs 152-160. In comparison, on Tuesday, it was listed on BSE at Rs 200, while on National Stock Exchange (NSE), the shares of Saraswati Saree Depot were listed at Rs 194 with a premium of 21.25 percent. Earlier, market experts were also expecting a strong listing of the shares of this company and had estimated its listing between Rs 200 to Rs 210.
Investors got so much profit in a shock
Saraswati Saree had set a lot size of 90 shares under the IPO and according to the upper price band, investors had to invest at least Rs 14,400. If we look at the calculation of profit on listing, investors have made a profit of Rs 3600 on each lot. Under the IPO, the investors who had bid for maximum 13 lots and invested Rs 1,87,200 for 1170 shares, it increased to Rs 2,34,000 on the very first day. Accordingly, he has earned Rs 46,800 in one go.
What does Saraswati Saree Depot do?
Apart from this, this Kolhapur company associated with saree production also supplies other women’s clothes, these include lehengas, kurtis and others. This company was established in the year 1966 and its business is spread across the country. More than 90 percent of the revenue of this company comes from the sale of sarees only.
(Note- Before making any kind of investment in the stock market, definitely take advice from your market experts.)