Shringar House IPO subscribed 2 times on Day 1 with strong demand

The initial public offer of jewellery firm Shringar House of Mangalsutra Ltd was fully subscribed within hours after opening for bidding on Wednesday and finally ended with 2.01 times subscription.

The initial share sale received bids for 3,41,36,370 shares against 1,70,16,000 shares on offer, according to details available with the NSE.

The portion for Retail Individual Investors (RIIs) received 2.83 times subscription, and the non-institutional investors part fetched 2.70 times subscription. Qualified Institutional Buyers (QIBs) part got subscribed 1 per cent.

Shringar House of Mangalsutra on Tuesday said it has garnered Rs 120.18 crore from anchor investors.

The IPO, with a price band of Rs 155 to Rs 165 per share, will be available for subscription till September 12.

The Mumbai-based company's IPO is entirely a fresh issue of 2.43 crore equity shares, worth Rs 401 crore at the upper end of the price band, with no Offer For Sale (OFS) component.

Proceeds from the fresh issue will be utilised for supporting working capital requirements of the company and general corporate purposes.

Incorporated in 2009, Shringar House of Mangalsutra is engaged in designing, manufacturing, and marketing a diverse range of Mangalsutras adorned with various stones, such as American diamonds, cubic zirconia, pearls, mother of pearl, and semi-precious stones, crafted in 18k and 22k gold.

The company primarily serves its business-to-business (B2B) clients and holds about 6 per cent of the organised Mangalsutra market in India as of 2023, according to the draft papers citing a CareEdge report.

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