Shringar House of Mangalsutra IPO To Open on September 10 - All You Need To Know Before You Subscribe

Shringar House of Mangalsutra's initial public offering (IPO) is set to open for public bidding on September 10, 2025, and will close on September 12. The company is into designing and manufacturing of Mangalsutras, a sacred necklace worn by married Hindu women in India.

Here are the key details of Shringar House of Mangalsutra that you should know before you subscribe.

Shringar House of Mangalsutra IPO Key Details

Shringar House of Mangalsutra is a book-built issue of Rs 400.95 crore, entirely comprised of fresh issue of 24.30 million equity shares. The IPO shares are being offered between a price band of Rs 155 and Rs 165. Investors can apply in lots of 90 shares and the minimum application size for retail investors is Rs 14,850 per lot.

The shares of Shringar House of Mangalsutra are set to be allotted on September 15, and are set to debut on the bourses on September 17.

The book running lead manager of the issue is Choice Capital Advisors and the registrar is MUFG Intime India.

Shringar House of Mangalsutra IPO Objective

According to its red herring prospectus (RHP), Shringar House of Mangalsutra will use Rs 280 crore from its IPO proceeds for working capital requirements, and the rest for general corporate purposes.

The company clarified that the proposed fund deployment has not been appraised by any external agency, and management will retain broad discretion to revise or reallocate the proceeds based on business conditions and regulatory factors.

Shringar House of Mangalsutra IPO GMP, Expected Listing Price

Shringar House of Mangalsutra IPO shares is commanding a grey market premium between Rs 23 and Rs 25 over the issue price, according to websites that track prices of IPO-bound unlisted shares. At the upper band of Rs 165, this translates into a premium of 13.94 per cent to 15.15 per cent.  

Based on the GMP, Shringar house of Mangalsutra is expected to list between Rs 188 and Rs 190 per share.

Shringar House of Mangalsutra’s Listed Peer Companies

Shringar House of Mangalsutra has three peers in the listed arena - Utssav CZ Gold Jewels, RBZ Jewellers, and Sky Gold & Diamonds.

It reported revenue of Rs 1,429.81 crore for FY25, higher than Utssav at Rs 646.32 crore and RBZ at Rs 530.15 crore, but lower than Sky Gold at Rs 3,548 crore.

The company’s return on net worth (RoNW) in FY25 stood at 36.2 per cent, ahead of all the three peers. Utssav's RoNW was at 30.94 per cent, Sky Gold at 28.59 per cent and RBZ at 17.15 per cent.

At the upper price band, its price-to-earnings (P/E) ratio comes at 19.25, above Utssav’s 16.85 and RBZ’s 13.37, but trailing Sky Gold’s 28.73. The P/E ratio shows how much investors are willing to pay for each rupee of earnings.

Shringar House of Mangalsutra Business Model

Shringar House of Mangalsutra holds about 6 percent share of the organised Mangalsutra market in India. It makes Mangalsutras in 18k and 22k gold, using stones like American diamonds, cubic zirconia, pearls and semi-precious gems. The company sells to corporate clients, wholesalers and retailers in 24 states and four union territories. It also exports to the United Kingdom, New Zealand, United Arab Emirates, United States and Fiji.

Some of its major clients include Malabar Gold, Titan, GRT Jewellers, Reliance Retail, Novel Jewels of Aditya Birla, Joyalukkas and PN Gadgil. As of March 2025, it served 34 corporate clients, 1,089 wholesalers and 81 retailers.

Shringar House of Mangalsutra earns most of its revenue from retailers, which contributed 54.47 per cent in FY25, 54.13 per cent in FY24 and 52.46 per cent in FY23. Corporate clients accounted for 33.99 per cent in FY25, 31.78 per cent in FY24 and 30.18 per cent in FY23. Wholesalers brought in 11.50 per cent in FY25, 14.04 per cent in FY24 and 17.31 per cent in FY23.

Shringar House of Mangalsutra: Strengths and Risks

Risks: Shringar House of Mangalsutra works in a highly competitive market. The company manufactures only Mangalsutras, so all its revenue comes from a single product.

"100 per cent of our revenue from operations is dependent on sale and supply of single product, Mangalsutra," the company states in its RHP. That makes it vulnerable to any slowdown in demand.

It does not have long-term contracts with its key clients and is exposed to gold supply disruptions.

Strengths: Shringar house of Mangalsutra has been in business for over 15 years and has loyal clients across 24 states and four union territories. It offers more than 15 collections and 10,000 designs of Mangalsutras.

The company’s manufacturing facility covers 8,300 sq ft and is backed by a team of 22 designers and 166 in-house karigars, as its RHP mentions.