IPO Details
- IPO opening date: 10 September 2025
- IPO closing date: 12 September 2025
- IPO size: Rs 400.95 crore
- Fresh issue: Entirely a fresh issue of equity shares, aggregating up to Rs 400.95 crore.
- IPO price band: Rs 155 to Rs 165 per equity share of face value Rs 10 each.
- Minimum bid lot: 90 shares.
- Allocation to investors: 50% for QIBs), 15% for NIBs/HNIs, and 35% for Retail
- Lead Managers: Choice Capital Advisors Pvt. Ltd..
- Registrar: MUFG Intime India Pvt. Ltd. (formerly Link Intime Private Limited).
About the Company
- Shringar House of Mangalsutra (SHOML) is a business-to-business (B2B) mangalsutra supplier engaged in designing, manufacturing, and marketing a diverse range of Mangalsutras. It is recognized among the leading and specialized designers and manufacturers of Mangalsutras in India.
- Main products: Mangalsutras studded with American diamond, cubic zirconia, pearl, mother of pearl, and semi-precious stones, in 18k and 22k purity of gold. It also manufactures Mangalsutras on a job-work basis for corporate clients.
- Manufacturing unit: Operates a single manufacturing facility in Maharashtra, India, with an installed capacity of 2,500 kg per annum as of March 31, 2025.
- Employees: Supported by an in-house team of 22 designers and 166 Karigars.
- Promoters: Chetan N Thadeshwar, Mamta C Thadeshwar, Viraj C Thadeshwar, and Balraj C Thadeshwar.
- Branches/network: Serves clients across 24 states and 4 union territories domestically, and has an international presence in the United Kingdom, New Zealand, UAE, USA, and Republic of Fiji.
Financials
(Figures in Rs. Crore)
| Particulars | FY25 | FY24 | FY23 |
|---|---|---|---|
| Revenues | 1,429.82 | 1,101.52 | 950.22 |
| EBITDA | 92.31 | 49.57 | 37.81 |
| EBITDA Margin (%) | 6.46% | 4.50% | 3.98% |
| Net Profit | 61.11 | 31.10 | 23.36 |
| Net Profit Margin (%) | 4.27% | 2.82% | 2.46% |
Post IPO market cap : Rs 1,591 crore. Market cap / sales (FY25): 1.11 times. P/E for FY24: 51.08 times. P/E for FY25: 26.03 times.
The company has shown growth in its revenue and net profit over the reported periods.
Anchors Issue
Shringar House of Mangalsutra raised a total of Rs 120.20 crore from 14 anchor investors by allocating 72.84 lakh shares at Rs 165 per shares. The top 10 anchor investors (with approximate % allocation in brackets) were: Kotak Mahindra Life Insurance Company (16.6%), Maybank Securities Pte Ltd – ODI (12.4%), Plutus Investment Trust – Plutus Equity Investments Series (8.3%), Founders Collective Fund (8.3%), North Star Opportunities Fund VCC (8.3%), Societe Generale – ODI (8.3%), Mint Focussed Growth Fund PCC-Cell 1 (6.7%), AIDOS India Fund Limited (6%), Nav Capital VCC – Emerging Star Fund (4.2%), and Astrone Capital Fund (4.2%).The remaining anchor investors—Sunrise Investment Trust Fund, Goodyield Investments, Whiteoak Capital, and Five More Fund—split the balance, each receiving less than 4% allocation and collectively accounting for the remaining anchor portion. No domestic mutual funds participated in the anchor tranche
Salient points
- Use of funds: The fresh issue proceeds will be used for funding working capital requirements (Rs 280 crore) and general corporate purposes.
- Business scenario: The company operates in the niche Mangalsutra segment and holds a strong position. It is expected to benefit from the growing demand for gold jewellery, supported by factors like rising disposable incomes, increasing urbanization, and evolving fashion preferences. The Indian mangalsutra market is projected to grow from Rs 178 billion in CY23 to Rs 303 billion in CY32 with a 5.8% CAGR.
- Business verticals: Primarily a B2B supplier selling to corporate clients, wholesale jewellers, and retailers.
- Growth strategies: Aims to expand its market reach by establishing a new supply chain network in untapped domestic markets and venturing into new international markets.
- Risks: Operations face risks due to reliance on a single manufacturing facility in Maharashtra. There is significant geographical concentration, with approximately 50% of revenue from Maharashtra in FY25. The business is working-capital intensive.
- Litigations: No material criminal, tax, statutory/regulatory proceedings, or disciplinary actions involving the company, its promoters, directors, or key managerial personnel were outstanding as of RHP date.
- Revenue split: Domestic revenue constituted 98.59% and export revenue 1.37% in FY25.
- The company is focused on a single product, Mangalsutras.
- Capacity utilisation: Average capacity utilisation of the sole manufacturing facility was 69.0% in FY25, 70.0% in FY24, and 66.8% in FY23.
- Clients: Served 34 corporate clients, 1,089 wholesalers, and 81 retailers in FY25. Marquee clients include Malabar Gold, Titan, Reliance Retail, and Damas Jewellery.
- Working capital & inventory days: Inventory turnover ratio contracted to 6.3x in FY25 from 7.6x in FY24. Average days inventory outstanding were 63.3 days in FY25. Days working capital were 70 in FY25, 63 in FY24, and 54 in FY23.
- Receivables trend: Average days sales outstanding increased to 22.4 days in FY25 from 18.1 days in FY23.
- CAGR Revenues/profits/Margins last 3 years: Revenue grew by 22.9% (CAGR FY23-FY25), net profit by 61.1% (CAGR FY23-FY25). EBITDA margin improved from 3.98% in FY23 to 6.46% in FY25.
Peers
(Figures in Rs. Crore, for FY25)
| Particulars | Shringar House of Mangalsutra Ltd | RBZ Jewellers Ltd. | Sky Gold & Diamonds Ltd. | Shanti Gold International Ltd. |
|---|---|---|---|---|
| Sales | 1,430 | 530 | 3,548 | 1,106 |
| EBITDA | 92 | 63 | 196 | 92 |
| Net Profit | 61 | 39 | 133 | 56 |
| Market Cap | 1,591 | 561 | 4,186 | 1,676 |
| Enterprise Value | 1,308 | 645 | 4,615 | 1,885 |
| EBITDA Margin (%) | 6.5 | 11.9 | 5.5 | 8.3 |
| Net Margin (%) | 4.3 | 7.3 | 3.7 | 5.1 |
| Return on Capital Employed (RoCE)% | 28.0 | 18.3 | 16.9 | 24.5 |
| Return on Equity (RoE) (%) | 30.4 | 15.8 | 19.4 | 36.8 |
| P/E (x) | 26.0 | 14.5 | 31.5 | 29.9 |
| EV/EBITDA (x) | 14.2 | 10.2 | 23.5 | 20.5 |
| EV/Sales (x) | 0.9 | 1.2 | 1.3 | 1.7 |
Opinion
Pricing is in-line with peers. l may skip this IPO or join in in last moment based on subscription. The anchor book seems good for this size issue. So it has potential to give some small gains.
Post IPO equity capital: Rs. 96.43 crore. P/E for FY24: 51.08 times. P/E FY25: 26.03 times.
- This post is exploratory and educational purposes only.
- Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.