Shringar House of Mangalsutra Ltd is launching its Initial Public Offering (IPO) to strengthen the working capital requirements of the company and for corporate purposes. The IPO comprises a completely fresh issue of 2.43 crore shares aggregating to Rs. 400.95 crores with a face value of Rs. 10 each.
The total offer size aggregates up to Rs. 400.95 crore. The IPO opens for subscription on September 10, 2025, and closes on September 12, 2025. The shares will be listed on both the NSE and the BSE after the IPO concludes.
GMP of Shringar House of Mangalsutra Ltd IPO
As of September 10th, 2025, the shares of Shringar House of Mangalsutra Ltd in the grey market were trading at an 18.18 percent premium. The shares in the Grey Market traded at Rs. 195. This gives it a premium of Rs. 30 per share over the cap price of Rs. 165.
Overview of Shringar House of Mangalsutra Ltd
Shringar House of Mangalsutra Limited, Incorporated in January 2009, is a prominent Indian company engaged in the design and manufacturing of Mangalsutras, a culturally significant ornament in Indian tradition. The company operates primarily in the business-to-business (B2B) segment, catering to a wide range of clients, including corporate houses, wholesale jewellers, and retailers across India.
It offers a diverse collection of Mangalsutras crafted with a variety of stones such as American diamonds, cubic zirconia, pearls, and semi-precious stones, all set in 18k and 22k gold. With a focus on quality and traditional craftsmanship, the company has built a strong presence across 24 Indian states and 4 union territories, extending its reach and recognition within the domestic market.
The company has also expanded its footprint internationally, establishing a presence in key global markets including the United Kingdom, New Zealand, the United Arab Emirates, the United States, and Fiji during the fiscal years 2023 to 2025. Its clientele includes reputed domestic and international names such as Malabar Gold Limited, Titan Company Limited, GRT Jewellers, Reliance Retail, Joyalukkas India, and Damas Jewellery (UAE)
As of March 31, 2025, the company has served a wide client base consisting of 34 corporate clients, 1,089 wholesalers, and 81 retailers. Additionally, Shringar House of Mangalsutra manufactures Mangalsutras on a job-work basis for its corporate clients, efficiently processing gold bullion into finished products. During the fiscal years 2025, 2024, and 2023, the company processed 1,320.72 kgs, 1,221.19 kgs, and 870.26 kgs of bullion, generating revenues of ₹264.83 million, ₹193.24 million, and ₹156.47 million, respectively.
Promoters of Shringar House of Mangalsutra Ltd
The promoters of Shringar House of Mangalsutra Limited are Chetan N. Thadeshwar, Mamta C. Thadeshwar, Viraj C. Thadeshwar, and Balraj C. Thadeshwar. They bring with them decades of experience in the jewellery and ornament manufacturing industry. Their deep understanding of design innovation, traditional craftsmanship, gold processing, and market dynamics, both domestic and international, has been instrumental in driving the company’s consistent growth and expansion.
Lead Managers of Shringar House of Mangalsutra Limited IPO
Choice Capital Advisors Private Limited is acting as the Book Running Lead Manager, while MUFG Intime India Private Limited (formerly Link Intime India Private Limited) is serving as the Registrar, managing investor applications and allotment.
Objectives of the IPO Offer
The upcoming IPO of Shringar House of Mangalsutra Limited aims to utilise the net proceeds from the issue primarily for two key objectives. A significant portion, amounting to ₹280.00 crores, is proposed to be allocated towards funding the working capital requirements of the company. This will support the company’s operational growth, inventory management, and expansion in both domestic and international markets.
Additionally, a part of the proceeds will be used for general corporate purposes, which may include strategic initiatives, brand building, and strengthening the overall corporate infrastructure.
Financial Analysis of Shringar House of Mangalsutra IPO
The company has demonstrated strong and consistent financial growth over the past three fiscal years. Total income stood at ₹951.29 crore in FY23, increased to ₹1,102.71 crore in FY24 (a growth of 15.9%), and further rose to ₹1,430.12 crore in FY25, marking an impressive 29.7% year-on-year growth.
Profit After Tax (PAT) increased from ₹23.36 crore in FY23 to ₹31.11 crore in FY24 (a growth of 33.2%), and further jumped to ₹61.11 crore in FY25, reflecting a significant 96.4% growth, demonstrating enhanced margins and operational efficiency.
Shringar House of Mangalsutra Vs Peers
Shringar House of Mangalsutra Limited reported revenue from operations of ₹1,429.82 crore. The company has a basic and diluted earnings per share (EPS) of ₹8.57, a return on net worth (RoNW) of 36.20%, and a net asset value (NAV) per equity share of ₹27.84. The price-to-earnings (P/E) ratio is not disclosed.
Utsav CZ Gold Jewels Ltd recorded revenue from operations of ₹646.32 crore. It has a P/E ratio of 16.85, basic and diluted EPS of ₹11.63, a RoNW of 30.94%, and an NAV per equity share of ₹53.23.
RBZ Jewellers Ltd reported revenue from operations of ₹530.15 crore. The company has a P/E ratio of 13.37, basic and diluted EPS of ₹9.70, a RoNW of 17.15%, and an NAV per equity share of ₹61.26.
Sky Gold & Diamonds Ltd reported revenue from operations of ₹3,548.02 crore. It has a P/E ratio of 28.73, diluted EPS of ₹9.44, a RoNW of 28.58%, and an NAV per equity share of ₹46.61.
Shringar House of Mangalsutra Strengths and Weaknesses
Strengths
- The company has established a strong client base and long-standing relationships with its customers.
- It focuses on design innovation and offers a diversified product portfolio.
- The company operates an integrated manufacturing facility.
- It maintains strict quality assurance and quality control for its Mangalsutras.
- The company has demonstrated continuous improvement in its financial performance.
- It is led by experienced promoters and a professional management team.
Weakness
- Client Concentration Risk: A significant portion of revenue comes from corporate clients (33.99%), retailers (54.47%), and wholesalers (11.50%) in FY25, without long-term contracts. Loss of any major client or order cancellations could adversely affect the business.
- Capacity Utilisation Risk: The company operated at 69.00% capacity utilisation in FY25. Under-utilisation or inability to fully utilise manufacturing capacity may impact future growth and financial performance.
- Working Capital Requirement: The company needs substantial working capital for growth and plans to deploy ₹280 crore from net proceeds to meet these requirements in FY26. Failure to secure adequate working capital could negatively affect operations.
- Single Location Manufacturing Risk: The entire manufacturing is concentrated at one facility in Mumbai, Maharashtra. Any disruption due to power or water shortages, machinery failure, natural disasters, or other unforeseen events could impact production and business operations.
Conclusion
Shringar House of Mangalsutra Ltd’s IPO presents a compelling opportunity in the niche and culturally significant jewellery segment, particularly in Mangalsutras. The company boasts strong revenue growth, rising profitability, a robust client base, and an expanding international footprint. Overall, this IPO could be attractive for investors seeking exposure to the premium jewellery manufacturing space, but a thorough assessment of the company’s fundamentals and risk factors is recommended before making any investment decision.
Written by Sridhar J
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
