The initial public offering of Shringar House of Mangalsutra has continued to attract strong investor attention on the second day of bidding. The Rs 400.95 crore issue has already been subscribed nearly four times as of September 11, reflecting high demand from retail and non-institutional investors.
Subscription Momentum Builds
Data from the NSE shows that the IPO received bids for more than 6.58 crore shares against an offer size of 1.70 crore shares by 11:45 am on Day 2. Employees subscribed to their reserved portion an impressive 14.45 times, while retail investors and non-institutional investors subscribed five times and six times respectively. On the other hand, qualified institutional buyers subscribed to only two percent of their allotted portion so far, suggesting that institutional participation may pick up closer to the final day.
Grey Market Premium Trends
While investor demand remains strong, the grey market premium has softened slightly. According to Investorgain, Shringar’s shares were trading with a 16.36 percent premium over the IPO price at Rs 192 per share, down from 18 percent the previous day. IPO Watch cited an 18.18 percent premium at Rs 195 per share, also a marginal dip. Although the GMP has declined, the continued positive premium reflects market optimism about potential listing gains.
IPO Details and Utilisation of Proceeds
Shringar House of Mangalsutra launched its IPO to raise Rs 401 crore through a fresh issue of 2.43 crore equity shares in a price band of Rs 155 to Rs 165 per share. Investors can bid for a minimum of 90 shares, requiring an investment of Rs 14,850 at the upper price band, with allotments likely to be finalised by September 15. The stock is scheduled to debut on the BSE and NSE on September 17.
The company plans to use Rs 280 crore from the proceeds to meet working capital requirements, with the remaining funds set aside for general corporate purposes. Ahead of the IPO, Shringar raised Rs 120.2 crore through its anchor book, with Kotak Mahindra Life Insurance, Maybank Securities, and global funds such as Societe Generale participating.
Growth Story and Market Outlook
Based in Mumbai, Shringar House of Mangalsutra designs and manufactures mangalsutras for some of India’s most prominent jewellery brands, including Titan Company, Malabar Gold, Reliance Retail, Joyalukkas, and PN Gadgil Jewellers. Its client base also extends globally, with partnerships across the UK, UAE, New Zealand, and other markets.
The company is entering the market at a time when India’s mangalsutra industry is growing steadily. The domestic market, valued at Rs 178 billion in 2024, is projected to grow to Rs 303 billion by 2032, at a compounded annual growth rate of 5.8 percent. Given the cultural importance of mangalsutras in Indian weddings, demand is expected to remain stable and resilient.
Brokerages have largely taken a favourable view of the IPO, noting the company’s strong relationships with marquee jewellery brands, consistent growth, and expansion into untapped geographies. With a valuation of 19 times at the upper price band and strong anchor investor interest, analysts believe the IPO is reasonably priced and holds long-term potential.
Should Investors Apply?
Advisors suggest that long-term investors may consider subscribing to the IPO, given Shringar’s positioning in a culturally significant segment, its diverse client base, and steady growth prospects. Although the grey market premium has moderated slightly, the underlying fundamentals and demand trajectory provide confidence for the company’s post-listing performance.
As the IPO heads into its final day of bidding, retail and NII interest is expected to remain strong, with listing gains still on the table for early investors.
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