Shringar House IPO opens: Strong prospects, say analysts; should you bid?

Shringar House of Mangalsutra IPO: Anand Rathi Research has assigned a 'Subscribe for Long Term' rating to the issue, viewing it as a solid opportunity for long-term value creation

Shringar House of Mangalsutra IPO: The initial public offering (IPO) of Shringar House of Mangalsutra, a manufacturer and designer of Mangalsutra in India, is set to open for public subscription on Wednesday, September 10, 2025. The company seeks to raise ₹400.95 crore from its maiden public issue, which comprises an entirely fresh issue of 24.3 million equity shares. 

 

The company has reserved not more than 50 per cent of the issue for qualified institutional buyers (QIBs), not less than 10 per cent for non-institutional investors (NIIs) and not less than 35 per cent for retail investors.

Should you subscribe to the Shringar House of Mangalsutra IPO?

Anand Rathi Research - Subscribe for long term

According to analysts at Anand Rathi Research, Shringar House of Mangalsutra has positioned itself in the Indian jewellery market by combining traditional cultural value with modern design elements, creating a niche presence in the segment that is both heritage-driven and evolving with contemporary trends. 

 

 

"On the valuation front, based on annualised FY25 earnings, the company is seeking a P/E of 26 times, and a post-issue market capitalisation of approximately ₹15,911 million, making the issue appear to be fairly priced," the brokerage said in a note. 

 

According to Anand Rathi Research, the company operates in a working-capital-intensive environment, requiring upfront gold purchases and offering clients a credit period of 15-20 days. As the company scales, its working capital requirements are expected to increase, and IPO proceeds will be used to fund them. 

 

Additionally, the firm is also well-positioned to benefit from the growing formalisation of the jewellery sector and the significant market potential in the Mangalsutra segment. Its strategic plans include building a new supply chain network to penetrate untapped domestic regions and expand into global markets. 

 

Given its strong financial performance, expanding customer base, and growth strategies, Anand Rathi Research has assigned a ‘Subscribe for Long Term’ rating to the IPO, viewing it as a solid opportunity for long-term value creation.

Master Capital Services - Subscribe for long-term

According to Master Capital Services, the Indian Mangalsutra market, valued at ₹178 billion, is projected to grow to ₹303 billion by CY32, driven by consistent wedding-related demand and increasing trends toward personalisation.

 

"Shrinagar House of Mangalsutra Limited is well-positioned to capture this expected growth by establishing a supply chain network to reach untapped geographical regions. The company is strengthening its relationships with existing clients, participating in their future expansions, and continuing to invest in marketing and brand-building initiatives," the brokerage said.

 

Given these factors, Master Capital Services recommends the IPO as a suitable option for long-term investors.

Shringar House of Mangalsutra IPO grey market premium (GMP)

According to sources tracking unofficial markets, Shringar House of Mangalsutra shares were seen trading at around ₹195 per share, reflecting a GMP of ₹30 or 18.2 per cent over the upper end of the price band of ₹155 to ₹165.

Shringar House of Mangalsutra IPO key details

The three-day subscription window to bid for Shringar House IPO will close on Friday, September 12. The basis of allotment of shares is expected to be finalised on Monday, September 15. The successful allottees will receive the company's shares in their demat account on Tuesday, September 16. 

 

Shares of Shringar House are scheduled to make their debut on the exchanges, NSE and BSE, tentatively on Wednesday, September 17. 

 

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

 

According to the 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.