Shringar House of Mangalsutra IPO: Key risks, strengths you must know

Shringar House of Mangalsutra IPO will open for bidding on Wednesday, September 10, 2025 and close on Friday, September 12, 2025

Shringar House of Mangalsutra IPO: The initial public offering (IPO) of Shringar House of Mangalsutra, a manufacturer and designer of Mangalsutra in India, will open for bidding on Wednesday, September 10, 2025. The maiden public issue worth ₹400.95 crore comprises an entire fresh issue of 24.3 million equity shares. There is no offer for sale (OFS) component.

 

The three-day subscription window is scheduled to close on Friday, September 12, 2025. The basis of allotment of shares is expected to be finalised on Monday, September 15. Shares of Shringar House of Mangalsutra will make their debut on the exchanges, NSE and BSE, tentatively on Wednesday, September 17.

 

 

Shringar House IPO is available at a price band of ₹155 to ₹165 per share, with a lot size of 90 shares. 

 

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

 

According to the red herring prospectus (RHP), the company plans to utilise ₹280 crore from the net issue proceeds for funding working capital requirements and the remaining funds for general corporate purposes.  

Here are the key strengths of Shringar House of Mangalsutra IPO, as outlined in the RHP

Strong client base & relationships: With over 15 years of operations, the company has built long-standing relationships with key clients, including corporate buyers, wholesalers, and retailers across 24 states and 4 union territories in India. It has also expanded its presence internationally, supplying to clients in the UK, New Zealand, UAE, USA, and Fiji over the past three fiscal years.

 

Integrated manufacturing facility: The company designs, manufactures, and markets a wide range of 18k and 22k gold Mangalsutras for its B2B clients through an integrated manufacturing facility. It operates a manufacturing facility spanning 8,300 sq. ft., which is equipped to produce diverse designs with precision and efficiency. As of March 31, 2025, it has an installed capacity of 2,500 kg per annum, enabling end-to-end production under one roof.

 

Continuously improving financial performance: The company has steadily expanded its operations, showing consistent growth in both revenue and profitability. In fiscal 2025, revenue from operations reached ₹1,429.8 crore, up from ₹1,101.5 crore in fiscal 2024 and ₹950.2 crore in fiscal 2023. This reflects a year-on-year increase of 29.80 per cent in fiscal 2025 and 15.92 per cent in fiscal 2024.

 

Strengthening fund-based capacity: The company plans to raise funds from the issue to strengthen its working capital base and support expansion, as its operations are capital-intensive and require immediate payments for gold purchases while offering credit to clients. 

Here are the key risks associated with investing in Shringar House of Mangalsutra IPO:

Capacity utilisation concerns: During fiscal 2025, 2024, and 2023, the company’s actual capacity utilisation stood at 69 per cent, 70 per cent, and 66.80 per cent, respectively, of its total installed capacity. Under-utilisation of manufacturing capacities and any inability to efficiently use expanded capacity could negatively impact the company’s business, growth prospects, and financial performance.

 

Risks from capital shortfall: The company requires a substantial amount of working capital to support its ongoing growth. It plans to allocate ₹2,800 million from the total net proceeds to fund working capital needs in fiscal 2026, based on certain assumptions and internal estimates. Any failure to secure working capital on commercially viable terms could adversely affect the company’s business operations, financial health, and overall performance.

 

Single facility risk: The company’s operations are entirely dependent on a single manufacturing facility located in Mumbai, Maharashtra. Any slowdown, disruption, or adverse event affecting this facility or the surrounding region could negatively impact its business performance, financial condition, operational results, and cash flows.

 

Product concentration risk: The company's entire revenue from operations comes through the sale and supply of a single product - Mangalsutras. Any decline in demand or an inability to manufacture or sell Mangalsutras could adversely affect its business performance and financial health. 

 

Intellectual property risks: The company may face challenges in protecting its intellectual property, particularly its designs, and remains vulnerable to potential litigation over alleged infringement. Such issues could significantly impact its reputation, operations, and financial condition.