Wedding Economy Play? Shringar House Of Mangalsutra IPO Oversubscribed On Day 2

It has drawn bids 3.3x the shares on offer, with strong demand from investors and a 16% GMP. But analyst cautions on promoter reliance and gold price exposure.

Shringar House of Mangalsutra’s IPO has witnessed strong investor demand in its second day of bidding, with shares trading at a grey market premium (GMP) of about 16%.

The company plans to raise ₹401 crore via the issue, of which ₹280 crore will be used for capital expenditure, while allocations of ₹100.23 crore will be used for general corporate purposes, and ₹20.73 crore for miscellaneous expenses.

At 3:30 p.m. IST, NSE data showed bids for 5.62 crore shares against 1.7 crore shares on offer.

Incorporated in January 2009, Shringar House of Mangalsutra Limited has established itself as a specialist in designing and manufacturing Mangalsutras. The company offers a diverse portfolio in 18k and 22k gold.

It operates on a B2B model, catering to corporate clients, wholesale jewellers, and retailers in India and international markets, including the UK, New Zealand, UAE, USA, and Fiji.

Its client base features Titan, Malabar Gold, GRT Jewellers, Reliance Retail, Joyalukkas, and Damas Jewellery. As of March 2025, Shringar has served 34 corporates, 1,089 wholesalers, and 81 retailers.

Analysts Views

Strengths include long-standing relationships with marquee clients, a strong B2B network, and consistent financial growth, said SEBI-registered analyst Aditya Hujband.

The company’s integrated manufacturing model, supported by skilled artisans, enhances product quality and scalability. With growing exports, Shringar is also tapping into high-demand NRI markets, Hujband said.

However, risks remain. Heavy reliance on promoters, unprotected designs, and exposure to gold price volatility could impact operations, the analyst added.

High client concentration and stiff competition from established jewellery brands add further pressure.

The company’s focus on niche jewellery aids in strong margins, but limits scale, SEBI-registered Financial Independence said. They expect moderate listing gains and consider the stock a long-term thematic play on India’s wedding economy.

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