Shares of Shringar House of Mangalsutra made a decent Dalal Street debut on Wednesday, September 17 as the jewellery player was listed at Rs 188.50 on NSE, a premium of 14.24 per cent over its issue price of Rs 165. Similarly, the stock kicked-off its trading with a premium of 13.76 per cent over the given issue price at Rs 187.70 on BSE.
As per the listing, retail investors, who received a single lot of 90 equity shares made a profit of Rs 2,115 on their investment of Rs 14,850. HNI bidders, who received 14 lots, including 1,260 made a profit of Rs 29,610 on their investment of Rs 2,07,900 as of the listing price.
The listing of Shringar House of Mangalsutra has been on expected lines. Ahead of listing, the grey market premium (GMP) of Shringar shares were commanding a premium of Rs 20-22 per share in the unofficial market, suggesting a listing of up to 13 per cent to the investors. However, GMP stood around Rs 30-32, after the issue was closed for bidding.
The IPO of Shringar House of Mangalsutra was open for bidding between September 10 and September 12. It had offered its shares in the price band of Rs 155-165 per share with a lot size of 90 shares. It raised a total of Rs 400.95 crore from its IPO, which was entirely a fresh share sale of 2,43,00,000 equity shares.
The issue was overall subscribed 60.29 times, fetching over 23.85 lakh applications, attracting bids for more than Rs 16,925 crore. The portion for QIBs was subscribed a solid 101.41 times. The quota for non-institutional investors was booked 82.58 times. The portion for retail investors and employees were booked 27.22 times and 69.90 times, respectively.
Incorporated in January 2009, 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.
Brokerage firms were mostly positive on the issue suggesting to subscribe to it. Choice Capital Advisors was the sole book running lead manager for the Shringar House of Mangalsutra IPO and MUFG Intime India is the registrar of the issue.