The company sells sarees, now it has made a strong entry in the share market, made money on the very first day

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 25 percent premium and investors have made a profit of Rs 40 on each share.

Saraswati Saree Depot’s IPO opened on August 12 this month and investors invested money in it till August 14. Through this issue, the company had sought bids for 10,000,800 shares with a face value of Rs 10. The IPO received a tremendous response from investors and it was subscribed 107.39 times on the last day. The quota of retail investors was 61.88 percent, NII category 358.65 percent and QIB category got more than 64.12 times subscription.

The IPO price band of the company’s shares was Rs 152-160. In comparison, on Tuesday, it was listed at Rs 200 on BSE, while on the National Stock Exchange (NSE), the shares of Saraswati Saree Depot were listed at Rs 194 with a 21.25 percent premium. Earlier, market experts were also expecting a strong listing of the shares of this company and had predicted a listing between Rs 200 and Rs 210.

Saraswati Saree had set the 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. On the other hand, investors who had bid for a maximum of 13 lots under the IPO and invested Rs 1,87,200 for 1170 shares, it increased to Rs 2,34,000 on the very first day. According to this, they have earned Rs 46,800 in one go.

This Kolhapur based company is involved in saree production and also supplies other women’s clothes, including lehenga, kurtis, etc. This company was established in the year 1966 and its business is spread across the country. More than 90 percent of the company’s revenue comes from the sale of sarees only.

(Note- Before making any kind of investment in the stock market, please take advice from your market experts.)