Shringar House of Mangalsutra lists at 14% premium, misses IPO GMP forecast

Shringar House of Mangalsutra share price: Shringar House of Mangalsutra shares listed at ₹188.50 per share on the NSE and ₹187.70 per share on the BSE, compared to the issue price of ₹165 per share

Shringar House of Mangalsutra IPO listing price: Shares of jewellery maker Shringar House of Mangalsutra (India) made a strong debut on Dalal Street on Wednesday, September 17, 2024. 

 

On the National Stock Exchange (NSE), the company’s shares listed at ₹188.50, reflecting a premium of ₹23.50 per share or 14.24 per cent over the issue price of ₹165.

 

On BSE, the shares listed at ₹187.70 apiece, reflecting a slightly lower premium of ₹22.70 or 13.76 per cent over the IPO allotment price. 

 

Shringar House of Mangalsutra IPO listing was slightly below grey market expectations, as the company’s unlisted shares were exchanging hands at around ₹191 per share before the debut. This indicated a grey market premium (GMP) of ₹26 per share, or 15.76 per cent over the issue price, according to sources tracking unofficial market activity.

Shringar House of Mangalsutra IPO details

Shringar House of Mangalsutra IPO comprised an entirely fresh issue of 24.3 million equity shares, aggregating up to ₹400.95 crore. There was no offer for sale (OFS) component in the issue. The issue was open for subscription from September 10 to September 12, 2024, with a price band of ₹155 to ₹165 per share and a lot size of 90 shares.

 

The offering received an enthusiastic response from investors, closing with an overall subscription of 60.29 times. Among the investor categories, qualified institutional buyers (QIBs) showed the highest interest, subscribing 101.41 times their allotted quota. This was followed by non-institutional investors (NIIs), who subscribed 82.58 times, and retail investors, who oversubscribed their portion by 27.22 times.

 

The company has set the issue price at ₹165 per share. 

 

Shringar House of Mangalsutra plans to use the proceeds from the IPO to fund its working capital requirements and for general corporate purposes. 

 

For the public issue, Choice Capital Advisors acted as the sole book-running lead manager, while MUFG Intime India served as the registrar. 

About Shringar House of Mangalsutra

Shringar House of Mangalsutra is engaged in the design, manufacturing, and marketing of Mangalsutras crafted in 18k and 22k gold. The company has established a strong market presence with an estimated 6 per cent share of India’s organised Mangalsutra market as of FY23. The product portfolio includes over 15 distinct collections and more than 10,000 active stock-keeping units (SKUs). These span across a wide range of customer preferences, including bridal, traditional, contemporary, Indo-western, and daily-wear segments.