Shringar House Of Mangalsutra IPO Listing Price: Shares List At 15% Premium

Shringar House of Mangalsutra IPO Listing Price: Shares of Mumbai-based jewellery firm Shringar House of Mangalsutra Ltd on Wednesday listed at a premium of Rs 188.5 apiece on the NSE, a 14.2% premium over the IPO issue price of Rs 165.

The stock slightly fell after the listing and was trading at Rs 186.12 apiece on the NSE, which is 12.7% higher over the IPO listing price.

The price band of the IPO was fixed in the range of Rs 155-Rs 165 per share. The issue received a 60.31x subscription, garnering bids for 1,02,62,35,800 shares as against the 1,70,16,000 shares on offer. The retail and NII participation stood at 27.26x and 82.58x, respectively. The QIB category received a 101.41x subscription.

The issue attracted decent grey market interest,

with its pre-listing GMP at Rs 31. Based on this, the stock was expected to be listed at nearly Rs 196, implying an 18.8% premium.

Shringar House of Mangalsutra IPO: Should You Buy, Hold Or Sell?

Shivani Nyati, head of wealth at Swastika Investmart Ltd, said, “Shringar House of Mangalsutra Ltd made an impressive debut on the stock market with a listing gain of approximately 63% over its issue price of Rs 83, getting listed at around Rs 135. The company is engaged in designing, manufacturing, and marketing a diverse range of Mangalsutra using 18k and 22k gold along with stones like American diamonds, cubic zirconia, pearls, and semi-precious stones for its B2B clients.”

It holds a strong presence in its niche segment and is expanding rapidly across key regions in India. “Investors are advised to book partial profits near current levels while holding the balance with a stop-loss set at Rs 115 to manage downside risk,” Nyati added.

The Mumbai-based company’s IPO is entirely a fresh issue of 2.43 crore equity shares, worth Rs 401 crore at the upper end of the price band, with no Offer For Sale (OFS) component.

Proceeds from the fresh issue will be utilised for supporting working capital requirements of the company and general corporate purposes.

Incorporated in 2009, Shringar House of Mangalsutra is engaged in designing, manufacturing, and marketing a diverse range of Mangalsutras adorned with various stones, such as American diamonds, cubic zirconia, pearls, mother of pearl, and semi-precious stones, crafted in 18k and 22k gold.

The company primarily serves its business-to-business (B2B) clients and holds about 6 per cent of the organised Mangalsutra market in India as of 2023, according to the draft papers citing a CareEdge report.

Choice Capital Advisors is the sole book-running lead manager, and MUFG Intime India is the registrar of the issue.