Shringar House of Mangalsutra shall launch its Rs 400 crore-initial public offering (IPO) on Wednesday, September 10. The issue, ahead of its opening, is hinting at healthy gains for the investors, if one goes by the current grey market premium (GMP) for the issue.
The issue has garnered positive views from the analysts so far, suggesting to subscribe to it.
Shringar House of Mangalsutra, will be offering its shares in the range of Rs 155-165 apiece, with a lot size of 90 equity shares and its multiples thereafter. The issue is entirely a fresh share sale of 2.43 crore equity shares, with a face value of Rs 10 each. The three-day bidding for the issue shall conclude on Friday, September 12.
Last heard, Shringar House of Mangalsutra IPO was commanding a grey market premium of 25 per share, suggesting a listing pop of 15.15 per cent for the investors. The GMP has been able to hold its ground since the official announcement of the issue. Anchor book details shall be declared on Tuesday, September 09.
For retail investors, profit is seen at Rs 2,250 per lot. Small HNI bidders, who must apply for a minimum of 14 lots, or 1,260 equity shares, can fetch gains of Rs 31,500. Similarly, big HNI bidders, who shall be applying for a minimum of 68 lots, or 6,120 equity shares, may see a profit of Rs 1,53,000 on their investment, if the current trends continue.
Shringar House of Mangalsutra has consistently grown its revenues since its commencement of business operations. It is planning to establish a panIndia supply chain model through third-party intermediaries/facilitators to tap the unpenetrated jewellery markets. It has identified 42 cities and has entered into arrangements with 11 third-party facilitators, said SBI Securities.
It’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. It aims to grow its volumes and scale of operations, the working capital needs are expected to increase correspondingly. It will be using net IPO proceeds towards working capital needs, it said.
“Shringar is likely to benefit from the rising shift from unorganized to organised sector as well as the huge addressable market size of mangalsutra. At the upper price band of Rs 165, the company is valued at post issue capital FY25 PE of 26 times. We recommend investors to ‘subscribe’ to the issue,” SBI Securities added.
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 House of Mangalsutra, with over 15 years of client relationships across 24 states and 4 UTs, serves a growing base of retail, corporate, and wholesale clients, including marquee names like Malabar Gold, Titan, Reliance, and Joyalukkas, while expanding into 42 cities and planning 400-440 new retail outlets domestically and globally, said SMIFS.
Its competitive edge stems from innovation, operational efficiency, and a diversified portfolio of over 15 collections and 10,000 SKUs, supported by 22 inhouse designers and 166 karigars, cost optimization, automation, and rigorous quality checks, it said.
“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,” SMIFS added.
Choice Capital Advisors is the sole book running lead manager and MUFG Intime India is the registrar of the issue. Shares of the company shall be listed on both BSE and NSE with September 17, Wednesday as the tentative date of listing. The company is commanding a market capitalization of Rs 1,591.13 crore at the current valuations.