Saraswati Saree shares hit 5% lower circuit for 2nd day after solid listing

In two days since listing, Saraswati Saree share price is down 9.7 per cent. It, however, is 18.5 per cent higher than its issue price of Rs 160

Saraswati Saree Depot share price today was locked in the 5-per cent lower circuit. As of 9:48 AM, the company's shares were locked in the lower circuit at Rs 189.55 on the BSE, and Rs 185.33 on the NSE.

By comparison, the BSE Sensex was up 115 points at 81,020 level.

On Wednesday, too, Saraswati Saree Depot share price had hit a 5 per cent lower circuit as it closed at Rs 199.5 per share. This comes after the shares made a strong stock market debut on Tuesday, August 20.

Saraswati Saree Depot shares listed at a premium of Rs 40, or 25 per cent, at Rs 200 on the BSE as against the IPO issue price of Rs 160.

Also Read about Orient Tech IPO GMP

On the NSE, Saraswati Saree Depot shares were listed at a premium of 21.25 per cent, at Rs 194. The listing was almost in line with the grey market premium (GMP) of 25 per cent.

In two days since listing, the share price is down 9.7 per cent. It, however, is 18.5 per cent higher than its issue price of Rs 160.

Saraswati Saree Depot Limited is a leading manufacturer and wholesaler of women's apparel, specialising in sarees and other traditional clothing.

The public issue had received a strong demand from investors, with the IPO being subscribed 107.39 times by the final day of subscription.

"The saree wholesale industry is highly competitive and fragmented, with low margins and significant seasonality. Despite these challenges, Saraswati Saree Depot's (pre-IPO) P/E valuation of 17.93x appears reasonable. Considering the industry dynamics, competitive landscape, and cash flow concerns, we recommend this IPO for investors with a high-risk tolerance and a long-term investment horizon," analysts at Swastika Investmart had said in their IPO note.