The Shringar House of Mangalsutra IPO is drawing strong investor interest as subscription rates exceed expectations and the grey market premium (GMP) remains healthy. Below is everything you need to know price details, demand, performance, and risks.
Key IPO Details
- The IPO opened for subscription on September 10 and will close on September 12, 2025.
- Price band: ₹155 to ₹165 per share.
- Total issue size: around ₹401 crore, entirely a fresh issue of 2.43 crore equity shares.
- Use of proceeds: about ₹280 crore will go towards working capital, with the rest for general corporate purposes.
- Listing date is expected to be September 17, 2025, on both NSE and BSE.
Investor Interest & Subscription Status
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On Day 1, the IPO was fully subscribed.
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By Day 2, subscription had risen to nearly 4× the base issue size.
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Retail and Non-Institutional Investors (NIIs) have shown particularly strong demand, while Qualified Institutional Buyers (QIBs) have been more cautious.
Grey Market Premium (GMP) and Market Sentiment
- The GMP is currently around ₹29.50, translating to about 17-18% premium over the upper price band of ₹165.
- Earlier, before the issue opened, GMP was slightly higher but has softened since then.
- Despite the dip, overall market sentiment remains positive given the strong subscription.
Financials & Business Profile
- In FY25, revenue rose to about ₹1,430 crore from ~₹1,101 crore in FY24.
- Profit after tax (PAT) nearly doubled, reaching ~₹61 crore in FY25 versus ~₹31 crore in FY24.
- The company specialises in designing, manufacturing, and selling Mangalsutras in 18- and 22-carat gold, often featuring pearls, semi-precious stones, American diamonds, and cubic zirconia.
- Its business is mainly B2B, supplying jewellery retailers across India and also catering to some overseas markets.
Strengths & Risks
Strengths:
- Strong growth in revenue and profitability.
- Market leadership in a culturally significant jewellery niche.
- Good response from retail and NII investors.
Risks:
- Heavy dependence on working capital, with potential delays in receivables.
- Lower participation from QIBs compared to retail investors.
- Grey market premiums are unofficial and may change rapidly.
- Competition in jewellery design and sensitivity to gold price fluctuations.
Should You Consider Applying?
If you are an investor who prefers moderate risk with growth potential, the Shringar House of Mangalsutra IPO looks attractive due to its strong financials, robust subscription, and healthy grey market premium. However, risk-averse investors should remain cautious as market conditions, gold prices, and competition could affect performance. Long-term investors may benefit more than short-term speculators.
Risk Disclaimer:
Investing in IPOs and securities involves risks. Past performance does not guarantee future returns. Grey market premiums are unofficial and speculative. Always consult a financial advisor before investing and read the IPO prospectus carefully.
