Shringar House of Mangalsutra IPO listing in focus: Shringar House of Mangalsutra made a healthy debut on Dalal Street today, September 17, as the stock listed with a 14.24% premium at ₹188.50 apiece on the NSE, compared to the issue price of ₹165. On the BSE, it opened 13.75% higher at ₹187.70.
Following the decent listing, the stock edged higher, gaining 1.3% to hit the day’s high of ₹191 apiece, about 15.75% above the IPO price.
The issue, which opened between September 10 and 12, witnessed a strong response from all sections of investors, as it received bids for 103 crore shares against the offered 1.70 crore shares, resulting in a subscription of 60.31 times.
According to Master Capital Services, the company is the largest specialized Mangalsutra manufacturer in India, with a market share of approximately 6% in the organized market. The company has a business model that involves both designing and manufacturing Mangalsutras with an assortment of stones and in both 18k and 22k gold purity.
It noted that as a B2B supplier, Shrinagar sells to different corporate clients, wholesale jewellers, and retailers across 24 states and 4 union territories in India, as well as through international markets.
Rising customization trends to drive Indian mangalsutra market
Master Capital Services added that the Indian Mangalsutra market is witnessing increasing customization trends and is expected to reach ₹303 billion by CY32 at a CAGR of 5.8%. As a major player in the Indian jewellry market, Shrinagar holds a solid clientele with top jewellry manufacturers and a history of reliable performance.
On a financial basis, it noted that the company has demonstrated good growth in preceding years along with healthy return ratios during the same period. However, given the capital-intensive nature of the business, it requires significant working capital, for which the company has allocated ₹280 crore from IPO proceeds to support operations.
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