Shringar House of Mangalsutra IPO opens today: Should you subscribe to it?

Shringar House of Mangalsutra is set to launch its initial public offering (IPO) today- Wednesday, September 10. The jewellery player is offering its shares in the range of Rs 155-165 apiece. Investors can apply for a minimum of 90 equity shares and its multiples thereafter. The issue shall close for bidding on Friday, September 12.

Shringar House of Mangalsutra (Shringar) is looking to raise a total of Rs 400.95 crore via its IPO, which is entirely a fresh share sale of 2,43,00,000 equity shares. The net proceeds from the issue shall be utilized towards funding Working Capital requirements and general corporate purposes.

Incorporated in January 2009, Mumbai-based Shringar House of Mangalsutra manufactures and designs Mangalsutra in India. It designs, manufactures, and markets a diverse collection of Mangalsutra featuring various stones like American diamonds, cubic zirconia, pearls, and semi-precious stones, using 18k and 22k gold for its business-to-business (B2B) clients.

Shringar raised a total of Rs 120.20 crore via 14 anchor investors as it allocated 72.84 lakh shares at Rs 165 per share.  Its anchor book included names like Kotak Mahindra Life Insurance Company, Maybank Securities, Plutus Investment Trust, Founders Collective Fund, North Star Opportunities Fund, and Societe Generale among others.

For the financial year ended on March 31, 2025, Shringar House of Mangalsutra reported a net profit of Rs 61.11 crore with a revenue of Rs 1,430.12 crore. It clocked a net loss of Rs 31.11 crore with a revenue of Rs 1,102.71 crore for the year 2023-24. It was commanding a grey market premium of Rs 30, suggesting a listing pop of 18 per cent for the investors.

Shringar has reserved 20,000 shares for its eligible employee, who will get a discount of Rs 15 per share. Of the net offer, 50 per cent shares will be reserved for QIB, while non-institutional investors will get 15 per cent of allocation. Retail investors will have 35 per cent of the allocation in this IPO. The company shall command a market capitalization of Rs 1,591 crore.

Choice Capital Advisors is the sole book running lead manager for the Shringar House of Mangalsutra IPO and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE on September 17, Wednesday. Here's what a host of brokerage firms said about the IPO of Shringar House of Mangalsutra:  

Arihant Capital Markets Rating: Neutral Shringar has delivered consistent revenue growth with sustained profitability, supported by strong financial discipline and operational efficiency. Its integrated manufacturing facility, coupled with a focus on design innovation and quality control, will allow it to meet the growing demand for personalized and high-quality products, said Arihant Capital Markets.

"The company operates in a niche and growing market, and its focus on the B2B segment with long-standing client relationships provides a competitive advantage. The issue is valued at a P/E ratio of 26.04 times, based on FY25 EPS of Rs 6.3. We are recommending a 'neutral' rating for this issue," it said.  

Canara Bank Securities Rating: Subscribe Shringar had a robust financial performance. The issue is fairly priced at 19 times PE as compared to average of 21 times PE of listed peers, but slightly overvalued at 6 times PB as compared to 5 times PB of peers. The company has pan India presence with majority sale within the state of Maharashtra, said Canara Bank Securities.

"It is well poised for growth owing to the introduction of new SKU’s, its long standing relationship with Marquee clients and innovations like 24K gold Mangalsutra in 2026. However, lack of plans to expand facilities and piling up inventory which has resulted in a negative cash flow from operations in FY 24 and FY 25 remains a concern," it said with a 'subscribe' rating for high-risk investors.  

Anand Rathi Shares & Stock Brokers Rating: Subscribe for long-term Shringar is likely to benefit from the rising shift from unorganized to 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.

"We assign a 'subscribe for long term’ rating for the IPO backed by Shringar’s robust growth, expanding client base, strong financials, and strategic expansion, enabling long-term value creation," it added.  

BP Equities Rating: Subscribe Shringar is well-positioned to benefit from the ongoing shift from the unorganised to the organised sector, along with the large addressable market for Mangalsutras, said BP Equities. "Given the company’s expanding margins, scalable business model, and growth potential, we believe the valuation, in the range of peers, is justified," it added with a 'subscribe for long-term' rating.  

Ventura Securities Rating: Subscribe Shringar sells products to corporate clients, wholesale jewellers, and retailers nationwide. They serve a diverse client base, including corporate clients, wholesale jewellers, and retailers across India, with a presence in 24 states and 4 union territories, said Ventura Securities. It expanded internationally to the UK, New Zealand, UAE, USA, and Fiji during FY23-25, it said with a 'subscribe' tag.  

SBI Securities Rating: Subscribe Shringar's business operations are working-capital intensive as it purchases gold from banks and bullion houses which require immediate payment while the clients are provided with an average credit period of 15-20 days. As it aims to grow its volumes and scale of operations, the working capital needs are expected to increase correspondingly., said SBI Securities.

"It is likely to benefit from the rising shift from unorganised to organised sector as well as the huge addressable market size of mangalsutra. The issue is valued at post issue capital FY25 PE of 26 times. We recommend investors to 'subscribe' to the issue at the cut-off price," it added.  

Marwadi Financial Services Rating: Subscribe with caution "We assign 'subscribe with caution' rating to this IPO as the company has a proven track record of consistent growth and profitability. However, negative cash flows from operating activities in recent fiscals make us cautious from a long-term investment perspective," said Marwadi Financial Services.  

SMIFS Rating: Subscribe "We recommend subscribing to the issue, supported by Shringar’s strong growth trajectory driven by an expanding client base, top-tier financial performance, strategic domestic and global expansion plans, and potential ramp-up in capacity utilization, positioning the company for sustainable long term value creation," said SMIFS.