On Day 1, the IPO received a robust response, closing with an overall subscription of 2.01 times, driven primarily by strong demand from retail and non-institutional investors (NIIs).
Shringar House of Mangalsutra IPO GMP Today:
The issue is trading at a grey market premium (GMP) of approximately 16% over the issue price of Rs 165, indicating robust investor interest in the jewellery manufacturer. If the current GMP trends are sustained till the listing date, shares of the company are likely to debut at around Rs 191.
Shringar House of Mangalsutra IPO subscription status:
On Day 1, the Shringar House of Mangalsutra IPO was subscribed 2.01 times overall. Retail Individual Investors (RIIs) showed strong interest, bidding for 2.83 times the 84.98 lakh shares allocated to them.
Non-Institutional Investors (NIIs), which include high-net-worth individuals and corporates, subscribed to 2.70 times their allocation of 36.42 lakh shares.Qualified Institutional Buyers (QIBs), such as mutual funds, banks, and insurance companies, have so far secured only about 1% of the bids against their allocation of 48.56 lakh shares.
Shringar House of Mangalsutra IPO Details:
The IPO is priced in the range of Rs 155 to Rs 165 per share and will remain open for subscription until September 12. The shares are expected to be listed on the NSE and BSE on September 17.
At the upper end of the price band, the company’s market capitalisation is estimated to be around Rs 1,591 crore. The issue includes a fresh issuance of 2.43 crore equity shares, which will help the company raise new capital for its growth plans.
Anchor Investors
Shringar House of Mangalsutra raised Rs 120 crore from anchor investors, drawing interest from several prominent marquee investors. The proceeds will mainly be utilised to meet working capital needs and for general corporate purposes.
Choice Capital Advisors is serving as the book-running lead manager for the offering.
Business Profile
Founded in 2009, Shringar specialises in designing and manufacturing mangalsutras, a jewellery segment with deep cultural and ritual significance. The company offers a wide range of products, featuring over 15 collections and more than 10,000 SKUs, catering to both everyday wear and special occasions.
Shringar serves a broad customer base that includes 34 corporate clients, 1,089 wholesalers, and 81 retailers across 24 states and four union territories in India, along with international markets such as the UK, UAE, USA, New Zealand, and Fiji. Prominent clients include Titan, Malabar Gold, GRT Jewellers, Reliance Retail, and Joyalukkas.
The company operates a single manufacturing facility in Mumbai, staffed by 22 designers and 166 artisans. This integrated in-house setup allows Shringar to maintain strict control over its design, quality, and production processes.
Financials and Valuations
Revenues grew by 30% to Rs 1,430 crore in FY25, while net profit nearly doubled to Rs 611 crore. The EBITDA margin improved to 6.5%. At the upper price band, the stock is valued at a price-to-earnings (P/E) ratio of 26x based on FY25 earnings, which is relatively lower compared to some listed peers in the jewellery industry.
Strengths and Risks
The company’s key strengths include a strong client base and a diverse design portfolio. However, reliance on a single product category and operating from a single manufacturing facility in Mumbai poses concentration risks. Additionally, seasonal demand fluctuations and dependence on a limited number of corporate clients could impact overall performance.
Should You Subscribe?
Brokerage Master Capital Services has given the IPO a “subscribe” rating, citing the company’s robust financial growth, strong niche market position, and attractive valuations compared to sector peers. Investors with a medium to long-term investment horizon are encouraged to consider participating.
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Shringar is well-positioned to benefit from the ongoing shift from the unorganised to the organised jewellery sector, especially within the growing mangalsutra market. At the upper price band of Rs 165, the stock is valued at a post-issue FY25 P/E of 26.0x, which appears reasonable given the company’s growth prospects and market opportunities. SBI Securities also recommends subscribing at the cut-off price, particularly for investors focused on long-term gains.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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