Shringar House of Mangalsutra IPO Analysis: Key Details, Financials & Outlook
The Shringar House of Mangalsutra IPO is set to open on September 10, 2025, marking a major milestone for one of India’s leading branded jewellery companies specializing in mangalsutras, gold ornaments, and diamond jewellery. With its strong retail presence, rising revenue, and strategic focus on both traditional and modern jewellery, this IPO is expected to attract significant investor attention.
Here’s a complete breakdown of the IPO details, financials, and investment outlook.
IPO Details
The IPO is entirely a fresh issue of ₹401 crore and does not include any offer-for-sale (OFS) component.
| Particulars | Details |
|---|---|
| IPO Size | ₹401 crore (fresh issue only) |
| Price Band | ₹155–165 per share |
| Face Value | ₹10 |
| Lot Size | 90 shares (₹14,850 minimum investment at upper band) |
| Issue Opens | September 10, 2025 |
| Issue Closes | September 12, 2025 |
| Allotment Date | September 15, 2025 |
| Listing Date | September 17, 2025 |
| Lead Manager | Choice Capital Advisors |
| Registrar | MUFG Intime India |
Fund Utilization
The net proceeds from the IPO will primarily be used to strengthen the company’s working capital base, with a significant portion also allocated to general corporate purposes.
| Purpose | Amount (₹ crore) | % of Proceeds |
|---|---|---|
| Working Capital | 280 | 69.83% |
| General Corporate Purposes | 100.23 | 25% |
| IPO Expenses | 20.73 | 5.17% |
| Total | 401 | 100% |
Financial Performance
Shringar House of Mangalsutra has shown steady growth in revenue and profitability over the last three years. The company’s PAT more than doubled between FY23 and FY25, supported by stronger margins and improved operational efficiency.
| Year | Revenue (₹ Cr) | Profit After Tax (₹ Cr) | EBITDA Margin | PAT Margin | RONW | ROCE | Debt-Equity |
|---|---|---|---|---|---|---|---|
| FY23 | 950.22 | 23.36 | – | 2.45% | – | – | 0.88 |
| FY24 | 1,101.52 | 31.11 | 4.61% | 2.82% | – | – | – |
| FY25 | 1,429.82 | 61.11 | 6.48% | 4.27% | 36.20% | 32.43% | 0.61 |
Key takeaway: Revenue has grown at a CAGR of ~22% since FY23, while PAT margins have consistently improved, highlighting operational efficiency and better cost management.
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Client & Revenue Mix
The company derives a major chunk of revenue from retailers, followed by corporate clients and wholesalers. This diversified client base reduces dependency on any single segment.
| Segment | Revenue (₹ Cr) | % Contribution |
|---|---|---|
| Retailers | 778.85 | 54.47% |
| Corporate Clients | 485.99 | 33.99% |
| Wholesalers | 164.40 | 11.50% |
| Total | 1,429.82 | 100% |
Geographically, the revenue is almost entirely domestic.
| Market | Revenue % |
|---|---|
| India | 98.63% |
| Exports | 1.37% |
Peer Comparison
When compared to listed jewellery peers, Shringar House appears fairly valued with a P/E ratio of ~26x based on FY25 EPS.
| Company | PE Ratio | EPS (₹) | RONW (%) | Revenue (₹ Cr) |
|---|---|---|---|---|
| Shringar House | 26.03 | 6.34 | 36.20 | 1,429.82 |
| Utssav CZ Gold | 28.79 | 7.65 | 44.62 | 340.20 |
| RBZ Jewellers | 34.42 | 5.39 | 14.38 | 327.43 |
Grey Market Premium (GMP)
The GMP for Shringar House IPO has been trending at ₹20–₹25 ahead of listing, which indicates a potential 12–15% listing gain over the upper price band of ₹165.
| Date | GMP (₹) | Premium % (over upper price) |
|---|---|---|
| Sept 5, 2025 | 20–25 | 12–15% |
Strengths
- Strong focus on mangalsutras, a niche yet high-demand segment.
- Steady revenue growth and rising PAT margins.
- Healthy return ratios (RoNW 36.2%, RoCE 32.43%).
- Robust retail distribution network across India.
- IPO proceeds to boost working capital and expansion.
Risks to Track
- High dependence on domestic sales (exports contribute <2%).
- Vulnerability to gold price volatility.
- Intense competition from established jewellery brands.
- Thin margins compared to larger listed peers.
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Verdict – Should You Subscribe?
The Shringar House of Mangalsutra IPO Analysis suggests a company with solid fundamentals, steady financial growth, and strong brand positioning in the mangalsutra and jewellery segment. At a P/E of 26x, valuations look reasonable compared to peers, and GMP trends indicate moderate listing gains potential.
Recommended for investors seeking listing gains and medium-term growth opportunities in India’s jewellery retail sector.
