Shringar House of Mangalsutra IPO Day 3: Strong HNI & Retail Interest Meets Weak QIB Support

Shringar House of Mangalsutra Limited (SHOML) continued its IPO journey with strong retail and HNI traction on Day 2. The issue closed with an overall subscription of 8.26 times, led by a massive 14.81 times by non-institutional investors and 9.65 times by retail, while QIBs showed only 0.86 times participation so far. This indicates a demand-heavy response from individual and HNI investors, in line with its cultural and niche jewellery positioning, but still a wait-and-watch approach from large institutions. On the grey market side, the GMP moved slightly upward from ₹29.5 on Day 1 to ₹31, signaling steady sentiment, though not euphoric. While monopolistic positioning and strong return ratios provide comfort, single-product concentration and stretched valuations remain key risks. The IPO’s final outcome could hinge on how QIB interest shapes on the last day.

IPO Overview

• IPO Date: September 10 to September 12, 2025
• Total Issue Size: ₹400.95 crore
• Price Band: ₹155 to ₹165 per share
• Lot Size: 90 Shares
• Tentative Allotment Date: September 15, 2025
• Listing Date: September 17, 2025 (Tentative)
• Subscription Status: The IPO has been subscribed 8.26  as on day 2.
• GMP: The GMP for Shringar House of Mangalsutra IPO is ₹29.5, reflecting an 17.88% gain over the issue price, according to Chittorgarh.com (as of September 11).
  Disclaimer: GMP is an unofficial indicator and is subject to market volatility.

Highlight of Day 2 of the IPO

On Day 2, Shringar House of Mangalsutra IPO saw a strong 8.26 times overall subscription, driven mainly by 14.81 times demand from HNIs and 9.65 times from retail investors. QIBs, however, subscribed only 0.86 times, keeping institutional interest muted. The grey market premium rose modestly from ₹29.5 on Day 1 to ₹31 on Day 2, pointing to steady but cautious optimism ahead of the final bidding day.

Highlight of Day 1 of the IPO

On Day 1, Shringar House of Mangalsutra IPO was subscribed 2.01 times overall, led by retail investors at 2.84x and HNIs at 2.70x, while QIBs contributed only 0.01x. The GMP held nearly flat, slipping marginally from ₹30 to ₹29.5, pointing to steady but cautious sentiment. The IPO seems to be riding retail enthusiasm, but institutional appetite will be the key factor in the upcoming days.

How Does Shringar House of Mangalsutra Make Money?

Shringar House of Mangalsutra makes and sells only one product: Mangalsutras. These are traditional Indian necklaces worn by married women as a symbol of marriage and blessings. The company works on a B2B model, meaning it sells in bulk to retailers, wholesalers, and corporate clients rather than directly to consumers.

Here’s how it works: the company buys gold (called bullion). Its artisans and designers then turn that gold into Mangalsutras using stones like American diamonds, pearls, or cubic zirconia. Once ready, these Mangalsutras are sold to clients who get 15-25 days of credit to make payments. This cycle requires heavy working capital.

In FY25, it processed 1,320 kg of bullion and sold to over 1,200 clients across 24 states, making it one of India’s specialized players in this cultural jewellery niche.

Objectives of the IPO

The IPO is entirely a fresh issue, and the money raised will go directly to the company. Here’s where SHOML plans to spend it:

• ₹280 crore to manage working capital needs like buying raw gold and maintaining inventory.
• To stock finished products with partners in new cities and expand international sales.
• Marketing spends - exhibitions, branding, celebrity endorsements.
• General corporate purposes, including investments in efficiency, expansion, and technology.

Strengths:

• From FY23 to FY25, revenue grew at 22.7% CAGR to ₹1,430 crore, while profit jumped 61.8% CAGR to ₹61 crore.
• It has a RoNW of 36.2%, which means the company makes ₹36 profit for every ₹100 shareholders invest - stronger than most listed jewellery peers.
• Debt-to-equity fell to 0.61, making it less dependent on bank loans.
• With 6% share in the organized Mangalsutra market and over 10,000 designs, SHOML dominates a category that others treat as just one of many product lines.
• Despite its traditional product, it supplies to global markets like USA, UK, and New Zealand.

Risks:

• Nearly 50% of revenue comes from Maharashtra alone (~₹708 crore), leaving it vulnerable to region-specific risks.
• For FY24 and FY25, it posted negative operating cash flows, meaning it’s not quickly converting sales into cash.
• From 54 days in FY23 to 70 days in FY25 - money is locked up more in receivables and inventory.
• Revenues rely on repeat orders from retailers and wholesalers, but there are no binding agreements.
• Entire production comes from an 8,300 sq. ft. unit in Mumbai — any disruption here can hit business badly.

For detailed information, visit Shringar House of Mangalsutra’s IPO page.

Peer Comparison

As per the RHP, the company’s listed peers include RBZ Jewellers, Sky Gold & Diamonds, and Utssav CZ Gold Jewels.

Source: RHP

IPO Valuation

At a post-issue P/E of ~26x FY25 earnings, the valuation looks reasonable compared to Sky Gold (29x) but expensive against RBZ (13x) or Utssav (17x). In other words, investors are being asked to pay a “premium price for a niche category leader”. The company’s strong RoNW justifies some of it, but cash flow weaknesses remain a concern.

Disclaimer: The P/E ratio here is calculated using the company’s post-IPO equity and its most recent FY25 net profits at the upper end of the price band.

Who’s Leading Shringar House of Mangalsutra?

Shringar House of Mangalsutra is a promoter-driven family business turned corporate. Leading the company is Chetan N Thadeshwar, Chairman & MD, with four decades of jewellery experience. He has been instrumental in identifying new growth opportunities and is also active in industry bodies like the All India Gem & Jewellery Council. His son, Viraj C Thadeshwar, is the CEO and has over 15 years in operations and expansion, anchoring SHOML’s younger leadership wing. Another key member is Balraj C Thadeshwar, COO, who oversees day-to-day administration.

The wider team includes experienced finance professionals like CFO Ritesh Doshi, a chartered accountant, and specialists across operations, procurement, sales, and compliance. This blend of deep family legacy in jewellery and modern professional management has helped SHOML scale beyond a local business into an organized player with 1,200+ clients across India and global markets.

Industry Outlook

The Indian Mangalsutra market was worth ₹17,800 crore in 2023, growing 16% year on year, and is forecast to touch ₹30,300 crore by 2032 at a 5.8% CAGR. Cultural tradition ensures Mangalsutras remain a steady purchase for generations, while new trends of design customization and celebrity influences are expanding its appeal. However, challenges from the unorganized jewellery sector (89% of the wholesale market), volatility in gold prices, and working capital needs remain structural hurdles.

Analyst View

Shringar House of Mangalsutra’s IPO is clearly turning into a retail and HNI-driven story. By Day 2, the issue was subscribed 8.26 times overall, led by strong HNI (14.81x) and retail (9.65x) interest, while QIB participation lags at just 0.86x. This reflects heavy demand from individuals but continued caution from institutions. The GMP has inched up from ₹29.5 on Day 1 to ₹31, showing stable to mildly positive sentiment. On the business side, the company’s niche monopoly in Mangalsutra jewellery and efficient capital model remain positives, but risks still lie in single-product reliance, stretched valuations, and uneven cash flows. At this stage, momentum is on the side of retail and HNIs, but the big question remains whether institutional money joins in strongly by Day 3 to give this IPO a firmer listing outlook.

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Disclaimer

Source: Shringar House of Mangalsutra's RHP. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Please be informed that merely opening a trading and demat account will not guarantee investment in securities in the IPO. Investors are requested to do their own independent research and due diligence before investing in an IPO. Please read the SEBI-prescribed Combined Risk Disclosure Document prior to investing. This post is for general information and awareness purposes only and is nowhere to be considered as advice, recommendation, or solicitation of an offer to buy or sell, or subscribe for securities. INDstocks is acting as a distributor for non-broking products/services such as IPO, Mutual Fund, and Mutual Fund SIP. These are not exchange-traded products. All disputes with respect to the distribution activity would not have access to the Exchange investor redressal forum or the Arbitration mechanism. INDstocks Private Limited (formerly known as INDmoney Private Limited) does not provide any portfolio management services, nor is it an investment adviser. Logos above are the property of respective trademark owners, and by displaying them, INDstocks has no right, title, or interest in them. SEBI Stock Broking Registration No: INZ000305337, Trading and Clearing Member of NSE (90267, M70042) and BSE, BSE StarMF (6779), SEBI Depository Participant Reg. No. IN-DP-690-2022, Depository Participant ID: CDSL 12095500, Research Analyst Registration No. INH000018948 BSE RA Enlistment No. 6428.