The Shringar House of Mangalsutra IPO enters its Day 2 of bidding. The IPO opened for bidding on September 10 and will the subscription window will close on September 12. But even as bidding continues, a big worry for investors is the falling Grey Market Premium (GMP).
As the bidding enters its second day, many might be curious to know whether the jewellery brand’s IPO will hold its shine or slip under pressure.
Let’s take a look at the big updates of this IPO –
Shringar House of Mangalsutra IPO GMP status: From steady start to mild dip
In the unofficial market, the share price of Shringar House of Mangalsutra IPO has cooled-off. On September 9, a day before the IPO opened, the GMP stood at Rs 30, pointing to gains of over 18% on listing. However, it failed to sustain after the iPO opened.
On September 10, the premium softened to Rs 27. By day 2- September 11, the GMP slipped another 2%. However, investors are still looking at potential listing gains of around 16%.
It is important to note that this is not the actual listing price and may fluctuate based on the market condition. This is merely indicative.
Shringar House of Mangalsutra IPO Subscription numbers: Strong retail interest on Day 1
The IPO got off to a quick start, fully subscribed within hours of opening. Shringar House of Mangalsutra on Day 1 received an overall subscription of 2.01 times. Retail investors subscribed their portion 2.84 times.
Similarly, non-institutional investors followed with a 2.70 times subscription. However, qualified institutional buyers (QIBs) showed almost no participation, with their category booked at just 0.01 times.
Shringar House of Mangalsutra IPO: Anchor investors
Ahead of the IPO opening, the jewellery company raised Rs 120.18 crore from anchor investors on September 9.
Shringar House of Mangalsutra IPO details: Price band and fund use
Shringar House of Mangalsutra is raising Rs 401 crore through a pure fresh issue of 2.43 crore equity shares, with no offer-for-sale component.
The price band Shringar House of Mangalsutra is set between Rs 155 to 165 per share.
Of the total proceeds, the company will use around Rs 280 crore to fund working capital requirements. Furthermore, the remaining will go towards general corporate purposes.
Shringar House of Mangalsutra IPO: Financial track record and business model
Talking of the financial performance of the company, the revenue of Shringar House of Mangalsutra rose to Rs 1,430 crore in FY25, up from Rs 1,101 crore in FY24. Moreover, the net profit doubled to Rs 61 crore from Rs 31 crore in the same period.
The company was founded in 2009. Shringar House of Mangalsutra operates on a B2B model, specialising in gold mangalsutras embellished with stones, pearls, and diamonds.