IPO Update: Shringar House of Mangalsutra’s ₹401 crore IPO – DRHP flags major risks
- 5th September 2025
- 05:30:00 PM
- 3 min read
Summary
Shringar House of Mangalsutra has filed draft papers with SEBI for a ₹401 crore IPO, comprising a fresh equity issue without OFS. The jewellery firm plans to use proceeds for working capital and corporate needs. The DRHP highlights growth in revenue and profit but flags risks around geographic concentration, karigar dependency, and single-product reliance.
Mumbai | September 5
Shringar House of Mangalsutra Limited, a Mumbai-based jewellery company, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth ₹401 crore.
The public issue will consist of a fresh equity issuance of 2.43 crore shares, with no offer-for-sale (OFS) component from existing promoters. According to the DRHP, the IPO proceeds will primarily be used for working capital requirements and general corporate purposes.
IPO details
- IPO size: ₹401 crore
- Issue type: 100% fresh equity issue (no OFS)
- Price band: ₹155 – ₹165 per share
- Subscription dates: September 10 to September 12, 2025
- Lead manager: Choice Capital Advisors Pvt. Ltd.
- Registrar: MUFG Intime India Pvt. Ltd.
The company has not yet disclosed the basis of allotment or listing date, which will be determined post-subscription.
Key risk disclosures from DRHP
The DRHP lists several risk factors that prospective investors should consider:
- Single facility dependency: All operations are run from one Mumbai unit; any disruption could impact revenue.
- Geographic concentration: Nearly half of revenue comes from Maharashtra, exposing the business to regional risks.
- Product concentration: Revenue is fully dependent on Mangalsutra sales.
- Working capital intensive: A large portion of IPO proceeds (₹280 crore) will go into working capital.
- Karigar reliance: The company depends on skilled artisans for production.
- Capacity utilization risk: Current utilization stands below 70%; underutilization could affect profitability.
- Seasonality: Jewellery sales fluctuate with wedding and festive seasons.
- Intellectual property risk: Potential design infringement and litigation exposure.
- Labor-intensive operations: Strikes, wage disputes, or labor law changes could disrupt production.
- Luxury consumption risk: Jewellery demand is discretionary and linked to consumer sentiment.
About the company
Established in 2009, Shringar House of Mangalsutra specializes in the design, manufacture, and retail of Mangalsutras, a traditional jewellery product in Indian weddings and daily wear. Its collections use 18K and 22K gold, incorporating American diamonds, cubic zirconia, pearls, mother of pearl, and semi-precious stones.
The company operates primarily in Maharashtra, contributing nearly 50% of its total revenue in FY25. As per the DRHP, it runs a single manufacturing facility in Mumbai, supported by skilled karigars (artisans) for production.
Financial Performance (₹ crore)
| Fiscal Year | Revenue from Operations | Profit After Tax (PAT) | Capacity Utilization |
| FY23 | 1,101 | 31 | 66.80% |
| FY24 | 1,230* (approx, as per DRHP growth trend) | 45 | 70% |
| FY25 | 1,430 | 61 | 69% |
*Source: DRHP filed with SEBI. Figures rounded where applicable.
Grey market premium (GMP)
According to data from Investorgain.com, Shringar House of Mangalsutra IPO is quoting a grey market premium (GMP) of ₹25 over the upper price band of ₹165. This translates into an indicative listing price of around ₹190 per share, a 15% premium.
Note: Grey market activity is unofficial and not regulated by SEBI. Investors should rely on the RHP/DRHP and official filings while making decisions.
Outlook
The IPO will test investor appetite for niche jewellery players in India’s booming ornament market. While the company has shown consistent growth and profitability, investors must weigh regional concentration, working capital dependence, and product reliance before subscribing.
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Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
