Ahead of the issue opening, Shringar House of Mangalsutra has garnered ₹120.19 crore from anchor investors.
The marquee institutions that participated in the anchor include Kotak Mahindra Life Insurance, Maybank Securities, Societe Generale, Plutus Investment Trust, North Star Opportunities Fund, Founders Collective, Mint Focused Growth Fund, Aidos India Fund, Rajasthan Global Securities, Sunrise Investment Trust, Astrone Capital, Jalan Chemical Industries, Shine Star Build and NAV Capital.
Brokerages view
SBI Securities: Subscribe
SBI Securities has recommended investors to subscribe to the issue at the cut-off price. It said that Shringar House of Mangalsutra has consistently grown its revenues since its commencement of business operations.
It is planning to establish a pan-India supply chain model through third-party intermediaries/facilitators to tap the unpenetrated jewellery markets. For this purpose, the company has identified 42 cities and has entered into arrangements with 11 third-party facilitators.
The company’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 the company aims to grow its volumes and scale of operations, the working capital needs are expected to increase correspondingly.
The company is likely to benefit from the rising shift from unorganised to organised sector as well as the huge addressable market size of mangalsutra.
Anand Rathi: Subscribe for long term
The brokerage has assigned a ‘Subscribe for Long term’ rating to the IPO, backed by Shringar’s robust growth, expanding client base, strong financials, and strategic expansion, enabling long-term value creation.
On the valuation front, based on annualized FY25 earnings, the company is seeking a P/E (price-to-earnings) of 26 times, and a post-issue market capitalisation of approximately Rs 1,591 crore, making the issue appears to be fairly priced, the brokerage said.
Shringar House of Mangalsutra IPO: Price band
The company has fixed a price band of ₹155 to ₹165 per share for its ₹401 crore IPO. The lot size for an application is 90. The minimum amount of investment required by an retail is ₹14,850, based on the upper end of the price band.
The IPO is entirely a fresh issue of 2.43 crore shares aggregating to ₹400.95 crore.
Shringar House of Mangalsutra IPO: GMP today
The IPO is garnering decent attention in the grey market, where the premium has surged to 18% above the upper price band.
However, it is important to note that grey market premiums are just an indicator of how the company’s shares are stacked up in the unlisted market and are subject to change rapidly.
Shringar House of Mangalsutra IPO: Structure
The offer is being made through the book-building process, wherein about 50% of the net offer is set aside for allocation on a proportionate basis to qualified institutional buyers, 15% for non-institutional bidders, and the rest 35% for retail investors.
Shringar House of Mangalsutra IPO: Objective
Proceeds from the IPO of about ₹280 crore will be used for its working capital requirements, and the remainder funds for general corporate purposes.
Company description
Incorporated in 2009, Shringar House of Mangalsutra designs, manufactures, and markets a wide range of Mangalsutras in 18k and 22k gold, often studded with American diamonds, cubic zirconia, pearls, mother of pearl, and semi-precious stones.
With 6% share of India’s organised Mangalsutra market in FY23, the company offers over 15 collections and 10,000+ active SKUs across bridal, traditional, contemporary, Indo-western, and daily-wear segments.
Company’s marquee corporate clientele includes Malabar Gold, Titan, Reliance Retail, Novel Jewel, Joyalukkas, PN Gadgil Jewellers, Damas Jewellery (UAE), etc. Shringar served 34 corporate clients, 1,089 wholesalers and 81 retailers as of FY25.
Book running lead manager
Choice Capital Advisors is the book running lead manager and MUFG Intime India is the registrar to the issue.
The allotment for the Shringar House of Mangalsutra IPO is expected to be finalised on September 15, and the shares will be listing on BSE and NSE with a tentative listing date fixed as September 17.
