The Shringar House of Mangalsutra IPO opened for bidding today. The book built issue of Rs 400.95 crore is a fresh issue. About 2.43 crore fresh shares are on offer. The IPO bidding will close on September 12. The stock was trading at a price of Rs 195 in the grey market, implying a listing potential of 18.18% to the issue price.
Shringar House of Mangalsutra IPO: Price band, GMP
The Shringar House of Mangalsutra IPO price band is set at Rs 155 – 165 per equity share. The GMP of the IPO is up 18% indicating an estimated listing price close to Rs 200 per share. However, investors must remember that this is only indicative. The actual listing price could be very different.
Shringar House of Mangalsutra IPO: Allotment and listing
The allotment for the Shringar House of Mangalsutra IPO is expected to be finalised on September 15. The IPO is likely to be listed on BSE and NSE, as per the tentative schedule.
Shringar House of Mangalsutra IPO: Lot size
A retail applicant needs to apply for a minimum of 90 shares in a lot, amounting to Rs 14,850. The lot size investment for a small NII is 14 lots of 1,260 shares, aggregating to Rs 2 lakh, and for a big NII, it is 68 lots of 6,120 shares, totalling Rs 10 lakh.
Shringar House of Mangalsutra IPO: Objectives of the issue
The company will be utilising the raised proceeds to fund the working capital requirements. Apart from that, some funds will be used for general corporate purposes.
Shringar House of Mangalsutra IPO: BRLM and registrar
Choice Capital Advisors Pvt. Ltd. is the book-running lead manager of the issue, while MUFG Intime India Pvt. Ltd. is working as the registrar for the IPO.
About Shringar House of Mangalsutra
Shringar House of Mangalsutra is in the business of manufacturing and designing Mangalsutra in India. The company features various stones like American diamonds, cubic zirconia, pearls, and semi-precious stones, using 18k and 22k gold for its business-to-business (B2B) clients.
The company sells its products to corporate clients, wholesale jewellers, and retailers nationwide.
Shringar House of Mangalsutra IPO: Revenue contribution
In FY25, retailers accounted for the largest share of revenues at 54.47% (Rs 778.85 crore), followed by corporate clients at 34% (Rs 4,86 crore) and wholesalers at 11.50% (Rs 164.40 crore). The client base continues to expand, with the number of retailers increasing from 872 in FY23 to 1,089 in FY25, while corporate clients grew from 32 to 34 during the same period.
Also, the corporate contribution to revenue has risen consistently, to 34% in FY25 from 30.18% in FY23, reinforcing the company’s strong positioning across both retail and institutional channels.
Shringar House of Mangalsutra IPO: Experts’ take
On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 26 times, and a post-issue market capitalisation of approximately Rs 15,911 million, making the issue appear to be fairly priced, said Anand Rathi Research in an IPO note. The company’s operations are working-capital intensive, with upfront gold payments and 15–20 days of client credit. As scale expands, working capital needs will rise, and IPO proceeds will be used to fund them.
“We also believe that the company is likely to benefit from the rising shift from unorganised to the organised sector, as well as the huge addressable market size of Mangalsutra, along with its plans to establish a new supply chain network to expand into untapped domestic markets and enter new international markets,” said Anand Rathi Research.